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Media Advisory

Department of Labor and Training Reaches Worker Misclassification Settlement

October 30, 2019


Department of Labor and Training Reaches Worker Misclassification Settlement Settlement exceeding $350,000 makes good on unmet obligation from 2015 case Director Scott Jensen announced today that the Department of Labor and Training received payment totaling $351,442.91 from North American Specialty Insurance, which issued a performance bond to Iron Construction Group, for a Rhode Island Prevailing Wage construction project. The settlement comes after the Department filed suit in Rhode Island Superior Court to recover back wages owed by Cardoso Construction LLC, a subcontractor of Iron Construction Group. In 2015, the Department entered into a settlement agreement with Cardoso Construction LLC for more than $730,000 in back wages, interest and penalties for misclassifying its employees and avoiding payroll obligations. Cardoso Construction LLC subsequently filed for bankruptcy in 2017, leaving the debt unpaid. “This settlement helps the workers impacted by the unmet obligation of Cardoso Construction LLC,” said Director Jensen. “It also serves as notice that general contractors bear responsibility for employees of their subcontractors.”



ABOUT DLT: The RI Department of Labor and Training offers employment services, educational services and economic opportunities to both individuals and employers. DLT protects Rhode Island’s workforce by enforcing labor laws, prevailing wage rates and workplace health and safety standards. The department also provides temporary income support to unemployed and temporarily disabled workers. For more information, please call the RI Department of Labor and Training at (401) 462-8000 or visit the web site at www.dlt.ri.gov

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