Potato giant RD Offutt agrees to pay 442 MN workers for sick leave violations

Fargo-based R.D. Offutt Farms, one of the largest potato growers in the world, agreed to pay $82,770 to 442 workers for failing to provide sick leave in 2024 as part of a settlement with the Minnesota Department of Labor and Industry announced on Monday, Nov. 17.

The company also sent checks totaling $80,800 to 101 migrant agricultural workers for not providing employment statements with key details including wages, job duties, employment period and housing arrangements.

Under a Minnesota law passed in 2023, all employees are entitled to one hour of paid sick and safe time for every 30 hours worked up to 48 hours a year — at least six days for a full-time employee.

R.D. Offutt Farms told state labor regulators that sick leave was available to all employees, but the Department of Labor and Industry determined most employees were not able to use the time, and the company did not tell employees how much time they had accrued, according to the settlement agreement.

A spokesperson for R.D. Offutt said in a statement that the company did comply with the “spirit of the new regulation” but acknowledged shortcomings on reporting requirements.

“Like many employers, we faced challenges implementing this new mandate with limited guidance and support…Since then, we have taken significant steps to strengthen our processes,” the statement said.

As part of the agreement, R.D. Offutt paid workers the value of the earned sick and safe time they were unable to use. Workers who did not receive employment statements ahead of traveling to Minnesota received $800 each.

“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, in a statement.

R.D. Offutt Farms has more than 15 potato farms across Minnesota, North Dakota, Wisconsin and Nebraska and is a major supplier of potatoes that become McDonald’s French fries.

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