A document submitted by Caddell Construction to Milan prosecutors shows the Alabama-based firm has agreed to pay €30.941 million, or about $35.24 million, to settle a labor exploitation investigation tied to the new U.S. consulate project in Milan.

The payment covers roughly €20 million in back wages, overtime, housing reimbursements and compensation for non-material damages for nearly 500 workers. The company does not admit liability, and its statement emphasizes proactive cooperation with judicial authorities and a commitment to fair treatment and payment of workers.

Italy’s labor minister, Marina Calderone, described the settlement as part of one of the most significant recent crackdowns on labor exploitation. She said the outcome reinforces Italy’s international reputation and sends a clear message that the state does not abandon its most vulnerable workers.

The investigation, launched in late May and upheld by a judge two weeks later, alleged that Caddell’s Italian subsidiary recruited workers in India through a New Delhi intermediary, required exhausting shifts, paid below‑standard wages, provided inadequate safety protections and threatened dismissal. Prosecutors and Italy’s Carabinieri also accused the firm of failing to provide proper social‑security contributions.

Under the agreement, Caddell will pay more than €7 million to the social‑security agency INPS and nearly €4 million to the Labor Inspectorate. The company’s executive officer, Michael Angelo Ranieri, signed the letter to prosecutors, stating that the commitments do not constitute an admission of wrongdoing nor an acceptance of the authorities’ legal or factual assessments.

Two sources familiar with the case said the settlement includes regularisation of about 500 workers, recognition of residence permits for 270 foreign employees and unemployment benefits for 60 workers who had been dismissed. After the payments are made, Milan prosecutors are expected to seek dismissal of the case against the Italian unit and to pursue plea‑bargain agreements with two arrested executives.

Construction on the U.S. consulate began in 2022. The contract, valued at nearly $210 million, was originally slated for completion in 2025 but has been pushed back to 2028. A U.S. State Department spokesperson told Reuters in June that U.S. law enforcement is cooperating with Italian authorities and that the U.S. government does not tolerate labor exploitation.

The settlement marks the latest in a series of labor‑exploitation probes led by Milan prosecutor Paolo Storari. Previous investigations have resulted in over €1 billion in recovered funds and improved employment rights for more than 60,000 workers, sparking debate over the scope of Italy’s judicial oversight.