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Southern Oregon University has agreed to pay $2.5 million to construction workers who didn’t receive pay at prevailing wage rates for a misclassified building project.

The terms of a settlement agreement between the university and Oregon’s Bureau of Labor and Industries were released last week. It’s the largest wage settlement in the agency’s history.

Work on SOU’s New Student Housing and Dining Commons project began in 2012 and concluded in 2013. At issue was whether it was a 鈥減ublic work鈥� under Oregon law.

Adroit Construction of Ashland was the general contractor, ACC-SC Development was the developer and CHF Ashland was the owner of the housing portion of the project. BOLI‘s multiyear inquiry found that 44 contractors and subcontractors paid 325 workers rates below Jackson County’s prevailing wage.

SOU denied any wrongdoing, but said through a spokesman that it chose to pay rather than wage a costly legal campaign.

The agreement releases SOU and other parties from future wage claims associated with the project, according to BOLI spokesman Charlie Burr.

The university has sent checks to 179 workers; it faces a May deadline to pay those still owed.