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Illinois AG secures $550K settlement over unpaid wages

LEGAL NEWSLINE

Friday, November 22, 2024

Illinois AG secures $550K settlement over unpaid wages

State AG
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Illinois Attorney General Kwame Raoul | Twitter Website

Attorney General Kwame Raoul has reached a $550,000 settlement with Polo Masonry Builders Inc., United Builders Group Co., and their owners, Petro Pariychuk and Oleh Synychak. The settlement aims to resolve allegations of misclassifying employees and failing to pay overtime wages for hours worked beyond 40 per week. A judge's approval is pending.

Raoul stated, "When employees are misclassified as independent contractors, they are deprived of critical labor protections they deserve and are entitled to under state law." He emphasized his office's commitment to protecting workers' rights in Illinois.

The investigation began after complaints from the Bricklayers District Council 1 and the Illinois Department of Insurance. It revealed that nearly 100 employees were misclassified as independent contractors by the companies. They were paid at their regular hourly rate without overtime premiums.

Under Illinois law, construction workers are presumed employees unless proven otherwise by employers. The state's Minimum Wage Law mandates an overtime premium of 150% for hours over 40 in a workweek.

The proposed settlement will allow affected employees to recover unpaid overtime wages. Additionally, Pariychuk and Synychak must inform the Attorney General’s office about any future construction firms they operate for compliance monitoring.

Assistant Attorneys General Jack Cramer and Henry Weaver, along with Bureau Chief Alvar Ayala, handled the case within Raoul’s Workplace Rights Bureau. This bureau focuses on protecting employment rights in Illinois, especially for vulnerable residents and immigrants.

Raoul encourages workers with wage concerns to contact his Workplace Rights Hotline or file complaints online.

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