business

Jason Jabas of Lakeville says that when he worked for Hawkins Tree and Landscaping Inc. of Shakopee several years ago, his paychecks often came up short.

"It was always generally less than what you were supposed to get," said Jabas, who left the landscaping and tree-trimming service in 2007 after about a year.

The owner, Michael Hawkins, always had a different story about why he couldn't pay the full wages owed, Jabas said. "I am out thousands of dollars with him that I should have made," he added.

Jabas is one of 67 employees the U.S. Labor Department says Hawkins stiffed on pay and overtime since 2006. Many workers were illegally classified as independent contractors and paid in cash, the department alleges.

"We believe this employer deliberately circumvented labor laws and took advantage of its workers," Jose Medina, who heads the department's wage and hour office in Minneapolis, said in a statement Wednesday.

In a civil lawsuit filed in U.S. District Court, government attorneys are seeking back pay and penalties that could double the amount Hawkins owes the workers. The total he allegedly owes was not disclosed.

The suit, filed Friday, alleges that Hawkins acted willfully to stiff workers. He put some workers on payroll, but paid them overtime as straight hours on separate non-payroll checks, the suit alleges.

Workers classified as independent contractors "were paid with cash and/or non-payroll checks" and many were shorted on regular and overtime pay, the suit alleges.

Craig Cascarano, an attorney for Hawkins, said he doesn't believe he violated federal pay rules but has been trying to settle with the government to avoid litigation. He said negotiations broke down because labor officials have sought substantial penalties and "the guy doesn't have a lot of dough."

Most Labor Department fair-pay cases against employers are resolved out of court. This is the first such case filed in Minnesota this year by the government, and only the ninth case here since 2005, federal court data show.

Jabas said Hawkins made good money on landscaping jobs he worked on in the Minnetonka area. But he predicted that government attorneys will have a tough time making a case against Hawkins.

"He kept everything word of mouth," Jabas said.

David Shaffer • 612-673-7090