Potato grower to pay workers over sick leave, hiring violations

Listen to this article

Potato producer R.D. Offutt Farms will pay more than $80,000 to more than 400 Minnesota workers for failing to provide sick leave, and some $80,000 more to 101 migrant agricultural workers for not providing employment statements. This is the result of a settlement that the Minnesota Department of Labor and Industry (DLI) announced on Nov. 17, and all money recovered will be paid out to the workers.

R.D. Offutt is headquartered in Fargo, North Dakota. The company is one of the largest potato growers in the world, supplying potatoes to fast-food restaurants. It has 15 potato farms across four states, including Minnesota.

A Minnesota law passed in 2023, and which took effect Jan. 1, 2024, makes all employees entitled to one hour of earned sick-and-safe time for every 30 hours worked. This allows full-time employees to accrue a minimum of 48 hours, or six days, of earned sick-and-safe time per year.

Additionally, Minnesota law requires employers hiring out-of-state agricultural workers to provide a written employment statement upon recruitment. This must include subjects such as housing, minimum engagement, payment terms, and start date. That requirement had previously mostly been applicable to the canning industry, but it was expanded in 2023 to cover more agricultural employers.

The DLI conducted an audit from Jan. 1, 2024, through Dec. 31, 2024. As a result of the investigation, the DLI concluded that R.D. Offutt did not provide earned sick-and-safe time to all employees and that most workers were unable to use the leave during the audit period. It also determined that migrant agricultural workers were not given the required written employment statements when they were recruited.

In a statement emailed to Minnesota Lawyer, R.D. Offutt said:

“During the 2024 growing season—the period reviewed by the Department of Labor and Industry—our full-time team members had access to generous benefits, including paid time off and paid sick time. All team members, including part-time and seasonal, also had access to Earned Safe and Sick Time (ESST) benefits under the new law, and many used them.

“While the benefits were available, a system error resulted in certain employees’ paystubs not always showing ESST hours. This reporting issue did not prevent anyone from using the benefit. Since then, we’ve strengthened our processes—upgrading record-keeping systems, training managers, and improving communication so every team member understands and can view their benefits.”

R.D. Offutt agreed to pay $82,769.45 in compensatory damages to 442 workers for failing to provide earned sick-and-safe time. This reflected the value of the earned sick-and-safe time that they were unable to use. Additionally, the company sent checks to 101 migrant agricultural workers who did not receive employment statements ahead of traveling, totaling $80,800. This amounts to $800 per employee.

“When migrant agricultural workers travel long distances for seasonal jobs, they should receive information about what they’re signing up for before traveling to Minnesota. With limited exceptions, they should also receive the protections of the ESST law when they are sick,” said DLI Commissioner Nicole Blissenbach. “We appreciate R.D. Offutt Farms’ cooperation to resolve these problems, compensate affected workers and take steps to make sure their employment practices improve.”

The DLI noted that their investigation is part of a larger effort to improve labor law compliance in the agricultural industry. It has taken steps to inform workers and employees about their rights and responsibilities by conducting webinars, legal education sessions, and direct engagement with agricultural organizations.