Attorney General Ellison wins protections for dairy workers in major wage theft action
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Settlement with Evergreen Dairy to bring employee housing up to code, document pay terms and conditions of employment, pay $250K in back wages
October 3, 2024 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that his Office has reached a settlement with Evergreen Acres Dairy, Evergreen Estates, Morgan Feedlots, and the dairy operations’ owners Keith Schaefer and Megan Hill that protects Evergreen’s workers by ensuring Evergreen complies with Minnesota housing-habitability and employment law. The settlement resolves the Attorney General’s lawsuit against the farm for systematically withholding wages from workers and illegally deducting rent from workers’ wages for substandard housing.
As part of the settlement, Evergreen will pay $250,000 in back wages to workers as well as to continue to bring employee housing up to standard. The Attorney General will monitor Evergreen for a period of three years and must allow the Attorney General staff to inspect employee housing and to obtain various wage-and-hour records from Evergreen. If Evergreen violates any of the terms of the settlement, it will be subject to a civil penalty of an additional $250,000.
In addition, the Attorney General secured a legally binding commitment from Evergreen that workers will have access to legal services and will be provided with proper documentation of their pay and hours, as required by law. It also ensures Evergreen will keep all employee records as required by law and will not make deductions from any employee’s pay without written permission from the employee. The settlement further guarantees Evergreen will communicate these changes with its employees in English and Spanish.
Attorney General Ellison filed the lawsuit against Evergreen in January 2024 after dozens of complaints from workers regarding wage theft and abysmal worker housing. Attorney General Ellison alleged in the suit that Evergreen systematically deprived their low-wage dairy employees of wages they earned by shaving both regular and overtime hours from workers’ paychecks, by failing to pay wages owed at the beginning and end of workers’ employment, and by unlawfully deducting rent for substandard onsite housing that failed to meet standards of habitability under Minnesota law. For example, some workers lived in garages, haphazardly converted barns, and other buildings not fit for human habitation. Some employees lived in housing with no onsite toilet. Click here to view photos of the substandard housing Evergreen was providing to employees.
In March 2024, Attorney General Ellison announced he had obtained a stipulated temporary injunction, in which Evergreen agreed to pay workers correctly and improve housing conditions while the lawsuit continued.
“Agricultural workers like these dairy workers at Evergreen are an important part of our economy and deserve to afford their lives and live with dignity, safety and respect. Today, we send a strong message that dairy farms like Evergreen and all employers in Minnesota cannot illegally profit off the backs of workers,” said Attorney General Ellison. “This settlement not only protects agricultural workers from exploitation, it also protects other producers who follow the rules from being undercut by competitors that aren’t paying employees what they’re owed under the law.”
Attorney General Keith Ellison expressed his appreciation for the workers who came forward to report the violations committed by Evergreen. “If it weren’t for the courageous workers who came forward—despite Evergreen’s threats—to hold this company accountable, we would have never been able to investigate this case and achieve this settlement agreement. We look forward to continuing to work with the victims to help make them whole again,” Attorney General Ellison concluded.
Attorney General Ellison’s settlement with Evergreen is part of a broad initiative to fight wage theft in Minnesota. Workers with concerns or complaints about systematic violations of state and federal wage laws can contact the Attorney General’s Office through its online complaint form (available in Spanish or English). The Attorney General’s Office can also be contacted by calling (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota). Spanish-speaking staff of the Attorney General’s Office are available.
