The conviction of Frederick Leon Newell for felony wage theft marks a significant development in Minnesota’s efforts to uphold labor rights. Newell, 59, was found guilty by a Hennepin County district judge on charges of wage theft and swindling. This conviction is the first under a 2019 state law, highlighting the importance of protecting workers’ rights and ensuring fair compensation.
Newell owned Integrated Painting Solutions based in Apple Valley, which secured a contract to work on the Redwell apartment complex in Minneapolis. Despite legal obligations to adhere to specific wage requirements, Newell failed to compensate his employees at the mandated rates. This malpractice resulted in over $37,000 in unpaid wages to five employees between June and December of 2020.
The court acknowledged that Newell’s actions constituted “major economic offenses,” potentially resulting in a harsher sentence. Additionally, Newell was found to have accepted payments from a general contractor while concealing the financial distress his company faced and the hours worked by his employees.
State Representative Cedrick Frazier noted the significance of this verdict in advocating for workplace justice. The amendment of Minnesota’s theft statute in 2019 to include wage theft as a criminal offense reflects a legislative commitment to safeguarding workers. Further legislative efforts are underway to empower county attorneys with more investigative authority to tackle wage theft effectively. Newell is scheduled for sentencing on June 6.
The Bottom Line
This landmark conviction sends a powerful message to employers about the seriousness of wage theft and the state’s resolve to enforce labor laws. Employees should feel reassured that their rights are being recognized and protected, potentially encouraging more workers to report similar infringements without fear of retaliation. For businesses, this case underscores the importance of compliance with wage laws to avoid legal repercussions and maintain a fair working environment.
The conviction may also prompt more robust checks and balances within the contracting and public works sectors, ensuring that funds allocated for labor are appropriately distributed. As Minnesota continues to strengthen its labor laws, employers and employees alike should be aware of the legal frameworks in place to foster equitable work conditions across the state.