Underpaid workers building U.S. Consulate in Milan, Italy, will split multimillion payout from U.S. firm

Summary

Date Reported: 27 Sep 2026

Location: Italy

Migrant workers from India and Africa were allegedly subjected to payments of just USD2 an hour, less than minimum wage, while building an American consulate in Milan, Italy, being developed by the Alabama-based multinational Caddell Construction. The workers were promised fair wages during recruitment, but their pay stubs showed illegal deductions for food and housing. The workers were reportedly also subjected to "exhausting shifts", a lack of safety protections, and worked under "constant threat of dismissal". Around 60 workers were reportedly dismissed. Later reporting says many of the Indian workers were recruited by the New Delhi based recruitment agency Dynamic House. The workers were charged EUR5,000 in fees and were promised three-year employment and residence arrangements in Italy. They were provided with a contract written in English, a language many of the workers did not understand, and were then made to sign a different contract upon arrival that they were not given copies of. They worked 12-hours a day, six days a week and were subjected to wage reductions for accommodation and food. Workers were subjected to threats of dismissal and those who complained were sent back to India, according to reporting. Other abuses included "recruitment debt"

Companies

Cadell Construction - Other Value Chain Entity , Dynamic House - Recruiter

Affected

Total individuals affected: 300

Migrant & immigrant workers: ( Number unknown - India , Construction , Gender not reported , Undocumented migrants ) , Migrant & immigrant workers: ( Number unknown - Africa , Construction , Gender not reported , Unknown migration status )

Issues

Recruitment Fees , Debt Bondage , Access to Information , Contract Substitution , Wage Theft , Reasonable Working Hours & Leisure Time , Minimum Wage , Intimidation , Dismissal , Mental Health

Response

Response sought: Yes, by journalist

External link to response: (Find out more)

Action taken: The company agreed to a nearly USD35 million settlement for back pay and damages to migrant workers. Unions supporting the workers welcomed the settlement. The building site was put under judicial administration to restore legal operations. A criminal investigation against the company in Italy is underway. The settlement includes an average payment of USD57,000 to nearly 300 workers, with some receiving up to USD102,000 in unpaid wages and for emotional distress. In a statement issued in June 2026, Caddell said it was proactively cooperating with judicial authorities and was "committed to treating and paying workers fairly"; it has not admitted liability, according to Reuters. The agreement includes regularisation of workers. Reporting says that "Italian authorities placed Caddell’s Italian branch under judicial administration after the investigation began. The criminal investigation remains open".

Source type: News outlet

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Underpaid workers building U.S. Consulate in Milan, Italy, will split multimillion payout from U.S. firm

Timeline

Italy: 480 workers, including migrants from India, set to receive EUR31 million settlement after reportedly being subjected to abuse while building US consulate

Underpaid workers building U.S. Consulate in Milan, Italy, will split multimillion payout from U.S. firm

US consulate builder in Milan to pay $35 million over labour probe