By Heart of Illinois ABC
NORMAL – Construction subcontractors building a new production line at Rivian have settled and resolved a joint investigation by Attorney General Kwame Raoul’s office and the Illinois Department of Labor over unpaid overtime wages.
A release from the Attorney General’s office says the settlements require the chain of subcontractors to pay nearly $400,000 in back wages and penalties to resolve allegations that they failed to pay Mexican laborers for overtime worked. The joint investigation revealed that a chain of subcontractors hired to construct Rivian’s new production line in Normal, Illinois failed to pay overtime wages to their Mexican workers at the site.
The settlements require China-based Guangzhou Mino Equipment Co. (Mino); Spain-based IT8 Software Engineering, S.L. (IT8); and Mexico-based LAM Automation (LAM) – along with the companies’ related entities – to pay owed overtime wages and civil penalties, totaling $390,000, to 54 workers who were denied overtime wages they earned.
“Any company doing business in our state must follow laws that require workers to be fairly compensated for the hours they work,” Raoul said. “This settlement should send a message that employers cannot hide behind subcontractors to avoid responsibility for stolen wages. I am committed to holding businesses – large and small – accountable for violating laws that safeguard workers and support law-abiding businesses in Illinois, and I appreciate the Illinois Department of Labor’s collaboration.”
According to the Attorney General’s office, Mino, IT8, and LAM utilized an elaborate subcontracting arrangement that allowed the companies to deny overtime pay to Mexican laborers at the Rivian facility.
After Rivian hired Mino to help build assembly lines at its facility in Normal, Mino then subcontracted work to IT8. IT8 then further subcontracted to LAM to obtain much of the workforce Mino used to fulfill its obligations to Rivian. IT8 and LAM helped laborers in Mexico obtain visas, including nonimmigrant NAFTA Professional (TN) visas, to work for IT8 and Mino at electrical vehicle plants in the U.S., including Illinois’ Rivian plant.
Although LAM was responsible for issuing payments to the workers, Mino and IT8 shared significant control over their work and their conditions of employment. In addition, Mino used these workers as part of its own labor force.
The investigation by Raoul’s office and the DOL revealed that employees at the Rivian plant typically worked between 60 and 80 hours per week, seven days a week. Illinois law requires an overtime premium of 150% of regular hourly wages for each hour worked over 40 in a week. LAM’s employees did not receive the full overtime wages required by law.
Under the settlements, Mino and IT8 each agree to pay the 54 impacted employees $145,000 in owed overtime wages and penalties, and LAM will pay an additional $100,000. The Illinois Minimum Wage Law allows employees to recover up to triple the amount of damages for any underpayment of wages to which they are entitled. Through the settlements, Raoul’s office is recovering nearly 270% of the overtime wages that employees should have received if they had been paid the required overtime premium rate.
Additionally, the settlements require Mino, IT8, and LAM to obtain certifications from any future subcontractors the companies utilize in Illinois to guarantee that the subcontractors will follow Illinois law. To help prevent future violations, the settlements also require subcontractors of Mino, IT8, and LAM to provide detailed wage statements to employees reflecting hours worked, pay rates and total wages earned.
Heart of Illinois ABC can be reached at [email protected].
