Orchard Failed To Meet Minimum Wages For Farm Workers
PORTLAND, Ore. - An Oregon federal judge incorrectly concluded that certain on-site housing costs for seasonal farm workers may be credited toward the minimum wage set by state law, the Ninth Circuit U.S. Court of Appeals ruled April 12 in an opinion in which it also concluded that the seasonal workers were entitled to be paid on the last workday, instead of the following day (Elias Bobadilla-German, et al. v. Bear Creek Orchards, Inc., Nos. 10-35205 and 10-35268, 9th Cir.).
Defendant operates peach and pear orchards in Medford, Ore. It hires seasonal workers to pick its orchards during the month-long harvest. It typically hires 50 workers to pick peaches and 300 workers to pick pears.
As part of their compensation, workers were offered optional on-site housing and meals. Bear Creek charged between $5 and $7 a day for housing and deducted this amount from the workers' paycheck and credited it toward their minimum wage. In many instances, if housing costs were not credited toward the workers' minimum wage, their wage would have been below the lawful minimum wage. During the 2004-06 harvests, workers were given their final paychecks on the morning after their last day of work.
Several workers filed a class action complaint against Defendant in the U.S. District Court for the District of Oregon. The 12 plaintiffs alleged violations of the Migrant and Seasonal Agricultural Worker Protection Act and Oregon's minimum wage laws. Several plaintiffs suing individually also claimed that Bear Creek violated Oregon law by failing to pay their wages when due after their employment ended.
The District Court ruled in favor of the workers on some claims and in favor of Bear Creek on others. The workers appealed only the claim that Bear Creek violated Oregon's minimum wage laws by crediting on-site housing costs toward the workers' minimum wage. Bear Creek cross-appealed the conclusion that Bear Creek violated Oregon law by paying its workers the day after their last work day. The District Court concluded that employers must pay seasonal farm workers on the last work day.
Reversing the District Court ruling in part, the Ninth Circuit panel opined that the District Court erred when it ruled that Bear Creek lawfully credited on-site housing costs toward the workers' minimum wage. The appellate judges determined that on-site housing was a necessity for Bear Creek to be able to maintain an adequate work force.
On the matter of payment, the appellate panel upheld the District Court's conclusion that Bear Creek violated Oregon law by paying its workers the day after their last work day.
(Abstract of Article from LexisNexis® Mealey's™ Litigation Report Employment Law, Vol. 7, Issue #10, May 2011).