Last week, a Hennepin County judge sentenced an employer following a first-of-its-kind criminal conviction for wage theft in Minnesota.

Since its enactment in 2019, Minnesota’s Wage Theft Prevention Act has imposed stringent penalties on employers who unlawfully withhold wages from employees. Under the Act, employers may face felony charges if they commit wage theft with intent to defraud their employees in an amount greater than $1,000.

On April 9, 2025, Frederick Newell, owner of Integrated Painting Solutions (IPS), became the first individual in Minnesota to be convicted of felony wage theft, including theft by swindle.[1]  According to the criminal complaint, Mr. Newell and his company secured a contract in 2020 to perform painting and wall covering for the construction of an affordable apartment complex in Minneapolis. Because this was a government-funded project, IPS was required to pay the employees the prevailing wage rate and maintain certain business and payroll records.

During the project, several employees filed complaints with the Minneapolis Civil Rights Division, alleging that Mr. Newell had engaged in unlawful wage practices. In 2021, the Division’s investigation found that Mr. Newell and IPS committed wage theft and other labor violations in connection with this project. On June 2021, the Division issued a violation letter to IPS and, ultimately, Mr. Newell entered into a settlement agreement with the Division, agreeing to pay $43,166 in restitution for the unpaid wages. Despite the agreement, Mr. Newell failed to make the payment.

On December 30, 2022, criminal charges were filed against Mr. Newell. After a bench trial, Mr. Newell was found guilty of felony wage theft by failing to pay five employees more than $37,000. Mr. Newell also was found guilty of theft by swindle in connection with the project.

On June 6, 2025, Mr. Newell was sentenced to three years’ supervised probation and was ordered to complete 200 hours of community service and to pay $42,255.64 in restitution to Griner Construction, the general contractor for the project which had voluntarily paid the IPS workers the monies owed by IPS and Mr. Newell. Mr. Newell also was prohibited from bidding on new public contracts during the term of his probation. Mr. Newell argued that the bidding prohibition would hinder his ability to pay restitution, but the Court dismissed this concern and clarified that the restriction is limited to three years and did not impact existing contracts.

Although this is Minnesota’s first felony wage theft conviction, at least two more cases against employers are pending for similar claims of wage theft and theft by swindling.

In addition to Minnesota’s enforcement of wage theft against employers, several other states have enacted criminal wage theft statutes, including:

• California
• Colorado
• Idaho
• Illinois
• Kansas
• Kentucky
• Virginia
• Wisconsin

Minnesota’s first felony wage theft conviction reflects a broader national trend. As more states enact similar statutes, employers will continue to face heightened accountability for wage violations. Please contact your Husch Blackwell attorney with any questions related to ensuring your business is in compliance with state and local wage and hour laws.

[1] State v. Newell, Case No. 27-CR-23-445, State of Minnesota, Fourth Judicial District, Hennepin County.