Milan U.S. consulate construction labor settlement

Alabama-based Caddell Construction has agreed to a settlement of approximately €30.94 million ($35 million) following an investigation into labor exploitation at the construction site of the new U.S. Consulate in Milan.

The investigation addressed allegations that Indian workers were subjected to 12-hour shifts and paid extremely low wages, sometimes between €1.50 and €1.91 per hour, while facing monthly deductions of roughly €850 for food and housing. The settlement funds are designated to cover unpaid wages, accommodation reimbursements, and moral damages for approximately 300 workers, as well as unpaid social security contributions and sanctions.

Prosecutors have described the deal as the largest settlement ever for labor exploitation in Europe. Following the agreement, more than 60 foreign laborers have signed documents to receive payouts, with individual averages of approximately 45,000 euros and some reaching nearly 90,000 euros. As part of the resolution, Italian authorities issued 238 special 12-month residence permits to affected workers. While Caddell Construction has committed to the payments, the company stated the agreement does not constitute an admission of legal or factual liability.