R.D. Offutt Farms to Pay $163K After State Finds Sick Time, Recruitment Violations

(KNSI) – One of Minnesota’s largest agricultural employers will pay more than $163,000 to hundreds of workers following a state investigation that uncovered violations of sick time and worker recruitment laws.

R.D. Offutt Farms Company operates more than 15 potato farms across Minnesota, North Dakota, Wisconsin and Nebraska, including fields near Brooten, Little Falls, Park Rapids, Perham and Wadena.

The settlement includes $82,769.45 in compensatory damages for 442 employees who were denied earned sick and safe time. That comes out to about $187 per person. The company will also pay around $800 a piece to 101 recruited migrant workers for failing to provide proper employment statements. That comes out to another $80,800 in penalties. Workers must be paid within the next 30 days. All payments will be made through the company’s payroll system or by check, with appropriate tax withholdings.

According to the Minnesota Department of Labor and Industry, the problem came to light in October 2025 after an audit of 2024’s records revealed the company failed to comply with two state employment requirements.

First, the company failed to provide earned sick and safe time (ESST) to its employees. Under Minnesota law, most workers became entitled to paid sick time beginning January 1st, 2024, for illness, caregiving and safety-related needs.

Second, the company failed to provide written employment statements to migrant agricultural workers at the time of recruitment. State law requires employers who recruit agricultural workers from outside Minnesota to provide detailed job information before workers travel to the state. According to court records, the written employment statement requirement is to protect workers who travel long distances for seasonal jobs. The statements must include essential details such as start dates, minimum employment periods, payment terms, housing arrangements and other relevant job information.

DLI Commissioner Nicole Blissenbach said, “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 consent order releases the company from claims related to the investigation’s findings. However, if R.D. Offutt Farms fails to comply with the terms of the settlement, the state may pursue other legal action.

Read the agreement by clicking here.

___