Tuesday, 28 December 2021 09:43

Rivian Automotive Construction Subcontractors Settle Over Unpaid Overtime Wages


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A chain of subcontractors will pay nearly $400,000 in back wages and penalties to resolve allegations they failed to pay Mexican laborers for overtime worked while building a new production line for Rivian Automotive, Inc., announced Illinois Attorney General Kwame Raoul on Dec. 21.

The settlement resolves a joint investigation by the Attorney General’s office and the Illinois Department of Labor (DOL).


The investigation revealed a chain of subcontractors hired to construct Rivian’s new production line in Normal, IL, failed to pay overtime wages to their Mexican workers at the site. The settlements require China-based Guangzhou Mino Equipment Co., Spain-based IT8 Software Engineering, S.L., and Mexico-based LAM Automation---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 used 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.


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