Caddell Construction Pays $35 Million to Settle Milan Labor Probe
Caddell Construction agreed to a 31-million-euro settlement to resolve allegations of worker exploitation at the site of a new U.S. consulate in Milan.
Alabama-based Caddell Construction has committed to pay approximately 31 million euros ($35.24 million) to resolve a probe into the exploitation of foreign workers building a new U.S. consulate in Milan. The settlement, described by prosecutors as the largest of its kind in Europe, involves payments to nearly 500 workers from India, Nigeria, Kenya, and Bangladesh. Payouts average 45,000 euros per person, with some reaching nearly 90,000 euros to cover unpaid wages, overtime, and damages.
Milan prosecutors and Carabinieri police alleged the company recruited workers through a New Delhi intermediary and subjected them to shifts paying less than $2 per hour without safety protections. The settlement includes 11.2 million euros for Italy's social security and injury insurance, as well as residence permits for 270 foreign employees. While the company maintains the payment is not an admission of liability, two managers remain under house arrest for extortion and facilitating illegal immigration.
The United States Department of State is investigating the allegations, asserting that the U.S. government has zero tolerance for illegal activity. Prosecutors expect to seek the dismissal of the case against the company's Italian unit once all payments are finalized.
