Caddell Construction has formally committed to pay €30.941 million ($35.24 million) in a Milan investigation into alleged labor exploitation at the site of the new U.S. consulate. The Alabama-based company agreed to allocate nearly €20 million to workers for overtime, accommodation reimbursements and compensation for non-material damages, while paying more than €7 million to Italy’s social security agency INPS and almost €4 million to the Labour Inspectorate. Caddell did not admit liability and said the commitments did not accept the authorities’ legal or factual assessments. Its Italian unit was placed under investigation and judicial administration on May 29, with the measure upheld two weeks later. Prosecutors and Italy’s Carabinieri accused the company of recruiting workers in India through a New Delhi intermediary and subjecting them to exhausting shifts, underpayment, inadequate safety protections and dismissal threats. The agreement covers the regularisation of about 500 workers, residence permits for 270 foreign workers and unemployment benefits for 60 dismissed workers. Milan prosecutors are expected to seek dismissal of the case against the Italian unit after payment and pursue plea bargains with two arrested Caddell executives. Construction on the consulate began in 2022 under a contract worth almost $210 million, with completion pushed from 2025 to 2028. The investigation is part of a wider series of labor-exploitation probes led by Milan prosecutor Paolo Storari, which have affected more than 60,000 workers and recovered over €1 billion, while prompting debate over the judiciary’s role.