Chicago Laborers’ Secure $1.75 Million Settlement in Wage and Benefits Dispute
August 4, 2026 - CLDCFOR IMMEDIATE RELEASE
Chicago, IL – The Chicago Laborers’ District Council has secured a $1.75 million settlement in a labor dispute involving a Chicago-area contractor and subcontractor, resulting in compensation for workers and contributions to union benefit funds.
Payroll and benefit audits conducted by the District Council and affiliated funds identified several workers who allegedly were not paid Laborers’ scale for their work on the contractors’ construction projects from 2018 and 2024.
Under the settlement agreement, which was finalized in April, the contractor agreed to pay $550,000 in back wages to workers and another $1.2 million to Chicago and Vicinity Laborers’ Pension and Welfare Funds on behalf of the Laborers.
The contractor and subcontractor denied wrongdoing and did not admit liability.
“This win is super satisfying. It’s great to know that I have the union fighting for me and my family,” said Mr. Mendez, who is one of the Laborers receiving compensation from the settlement.
The settlement marks a significant recovery for workers and benefit funds and underscores the importance of enforcing collective bargaining agreements and protecting the wages and benefits earned by our Laborers.
“The problem was identified by a business agent in the field. A grievance was filed against the contractor by the legal and grievance departments, which were assisted in their work by the Chicago Laborers’ Health and Wellness Funds and LMCC,” said James P. Connolly, Business Manager of the Chicago Laborers’ District Council. “It was a complete team effort.”
“All you cheaters watch out,” Connolly added. “We’re coming for you.”

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