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Record Settlement for Labor Exploitation at US Consulate Construction in Milan

Record Settlement for Labor Exploitation at US Consulate Construction in Milan

First seen 7 Oct 2026, 22:31 UTC • •
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ThreatCluster AI
ThreatCluster •October 7, 2026 at 22:32 UTC
  • •Over 60 workers from India signed for an average payout of 45,000 euros each.
  • •The settlement of 31 million euros is the largest for labor exploitation in Europe.
  • •Caddell Construction is under investigation for labor abuses, with two managers arrested.

Foreign workers building the new U.S. consulate in Milan signed agreements securing payouts averaging 45,000 euros ($50,400) each for alleged labor abuses. Over 60 laborers, primarily from India, are part of a 31-million-euro settlement with Caddell Construction. Prosecutors have stated this is the largest settlement for labor exploitation in Europe. Workers reported being paid less than $2 an hour, facing illegal deductions for housing, and being denied overtime. The investigation against Caddell remains open, with two managers under house arrest for extortion and facilitating illegal immigration. Payments are expected within 30 days, with the process continuing for 115 workers. The settlement also includes contributions to Italy's social security and workplace injury insurance.

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Timeline

2026-10-05
Settlement agreement reached
Caddell Construction agreed to a 31-million-euro settlement for labor abuses affecting foreign workers.
Bostonherald
2026-10-06
Workers begin signing settlement agreements
Over 60 laborers signed agreements at a Milan hotel to secure their payouts as part of the settlement.
Ksat
2026-10-07
Payouts to be made within 30 days
Workers are expected to receive their individual payments within 30 days of signing the agreements.
Bostonherald

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Common questions

Who is affected by the settlement?
Over 60 foreign workers, primarily from India, who were employed by Caddell Construction at the Milan consulate.
What were the allegations against Caddell Construction?
Workers alleged they were paid less than $2 an hour, faced illegal deductions, and were denied overtime.
What is the current status of the investigation?
The investigation against Caddell Construction is ongoing, with two managers under house arrest.