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Illinois Trucking Companies to Pay $335K in Wage Theft Settlement, AG Stresses Compliance

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Published on January 11, 2024
Illinois Trucking Companies to Pay $335K in Wage Theft Settlement, AG Stresses ComplianceSource: Google Street View

In a recent crackdown on wage theft, Illinois Attorney General Kwame Raoul secured a hefty $335,000 settlement from a pair of trucking companies accused of shortchanging their drivers. Announcing the payout, Raoul stressed the importance of adherence to state wage laws, a message that's loud and clear to businesses across Illinois.

The companies in question, Velasco Enterprises Inc., alongside Partner’s Hauling Inc., and their chief, Juan Velasco, were investigated by the attorney general’s office for failing to compensate drivers for time on the road between jobs, especially on public works projects. These drivers, who transport road construction materials, were reportedly not obtaining the full wages they were entitled to, including the overtime pay mandated by the Illinois Minimum Wage Law—1.5 times their regular rate for work beyond a 40-hour week.

Under the terms of the settlement, the Velasco entities will pay directly to those current and former employees eligible for the recovered funds. In clarification of the conditions, Raoul's office outlined that these workers were not always receiving their rightful prevailing wage rate on public project deliveries. These rates are often higher than standard pay to reflect the specialized nature of the work.

The settlement also imposes stricter record-keeping requirements on Velasco, ensuring that similar wage violations don't reoccur and that prevailing wages are disbursed properly on future public works assignments. This remedial action underscores the ongoing commitment of the Attorney General’s Workplace Rights Bureau—helmed by Bureau Chief Alvar Ayala and Assistant Attorney General Jack Cramer—to protect worker entitlements and monitor employment practices.

With an eye on safeguarding employment rights across the board, but especially for Illinois' most vulnerable and immigrant populations, Raoul's Workplace Rights Bureau remains vigilant against wage law abuses. To bolster these protections, the bureau also participates in legislative processes relevant to labor and employment.

Attorney General Raoul encourages any workers with complaints regarding their employer’s practices to reach out. He has made resources available through a Workplace Rights Hotline at 1-844-740-5076 and details on the bureau's initiatives can be found through the provided link to the Attorney General's official website.