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Trump pushes back on criticism of economy in contentious prime-time speech; 'A gut punch': GA small-business owner on loss of ACA subsidies; Conservationists: CO outdoor economy at risk from development; Report: MO outpaces nation on after-school meals but gaps remain.

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Legal fights over free speech, federal power, and public accountability take center stage as courts, campuses and communities confront the reach of government authority.

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States are waiting to hear how much money they'll get from the Rural Health Transformation Program, the DHS is incentivizing local law enforcement to join the federal immigration crackdown and Texas is creating its own Appalachian Trail.

MN case seen as 'tone-setter' in combating wage theft

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Thursday, February 13, 2025   

Minnesota's wage-theft laws are increasingly being put to use, giving the labor community hope that law-enforcement officials now recognize how deep of a problem this is.

John Choi, Ramsey County Attorney, this week announced a plea agreement with a Stillwater building contractor related to tax fraud charges. But the case began amid complaints that the defendant, Todd Konigson, was withholding wages from workers, along with payments to sub-contractors and vendors. County Attorney John Choi says tax charges were the best avenue for a conviction. Still, he senses a big shift in the movement to advance wage-theft cases.

"This is only the tip of the iceberg," Choi said. "We have many more investigations in the pipeline."

Since 2019, Minnesota has been bolstering its wage-theft laws, and Choi's office is one of the first in the state to dedicate staff for this particular crime. He said before sex-trafficking investigations became a priority, many agencies didn't give that issue much thought. He feels wage-theft will follow suit and turn more heads as people realize how much harm they create for communities.

Mike Wilde, executive director of the Fair Contracting Foundation of Minnesota, one of the many labor organizations describing how rampant wage theft is in the construction trades. Even though the Ramsey County case shifted to a tax issue, he says a key part of the plea deal resonates with the overall cause. That is a three-year ban for the defendant in doing contracting work in the state.

"And that means he's removed from the bidding pool," Wilde said. "And that helps the fair contractors, the lawful contractors."

Advocates argue that beyond exploiting workers, wage theft limits economic activity in other ways by keeping businesses - that play by the rules - out of contention for projects. Wilde still would like to see more awareness among other county attorneys in seeing how these investigations can reveal other criminal activity. This month, Minnesota's attorney general brought felony charges against the owners of a dairy business, including a racketeering count.

Disclosure: Fair Contracting Foundation of Minnesota contributes to our fund for reporting on Livable Wages/Working Families, Social Justice. If you would like to help support news in the public interest, click here.


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