Chicago – Attorney General Kwame Raoul filed a consent decree resolving an investigation by the Attorney General’s office into the warehousing and distribution companies Global Trade Hub Inc. (GTH) and Eve Group Series LLC (Eve Group). These companies will pay $142,200 to resolve claims that they misclassified workers and failed to properly pay them overtime wages.
“Misclassifying employees as independent contractors deprives workers of their right to be paid fairly and to be covered by workers compensation insurance in the event of workplace injuries,” Raoul said. “These employers gain an unfair competitive advantage by paying workers off the books and in violation of Illinois law, which creates an uneven playing field for law-abiding businesses. I am committed to holding businesses accountable for violating laws that safeguard workers and support law-abiding businesses in Illinois.”
GTH and Eve Group provide office services, warehousing and distribution for e-commerce businesses. Since October 2020, GTH and Eve Group have misclassified nearly the entirety of their workforce as independent contractors and failed to pay overtime wages for time worked over 40 hours per week. Under the agreement approved by a Cook County Circuit Court judge Thursday, 160 current or former workers will receive owed overtime wages.
In addition to the monetary settlement, the companies agreed to reclassify their workers as employees and submit themselves to monitoring. The monitoring includes record-keeping and reporting requirements aimed at preventing future violations of the law. GTH and Eve Group are also agreeing to open their doors, upon reasonable notice, for the Attorney General’s office to inspect the premises and interview workers as necessary to ensure compliance with the consent decree.
“When you show up to work - and put in extra hours - you expect to be paid what you’re owed,” said Illinois Department of Labor Director Jane Flanagan. “The Illinois Department of Labor works to ensure that employees are properly classified and paid accordingly. Thanks to the courage of workers who brought the Complaint to the IDOL and the Attorney General’s office, we were able to recover unpaid overtime wages for dozens of misclassified employees.”
Assistant Attorneys General Javier Castro and Henry Weaver and Bureau Chief Alvar Ayala handled the case for Raoul’s Worker Protection Unit.
Attorney General Raoul’s Workplace Rights Bureau protects and advances the employment rights of all Illinois residents, particularly the state’s most vulnerable residents and immigrant populations. The bureau investigates and litigates cases involving serious or persistent wage law violations or other significant employment practices, and monitors and proposes legislation concerning labor and employment issues.
Attorney General Raoul encourages workers who wish to file a complaint about an employer’s practices to call the Workplace Rights Hotline at 1-844-740-5076 or visit the Attorney General’s website.