Workers sue Hormel, alleging violations of Minnesota’s new sick and safe time law

AUSTIN, Minn. – Hormel Foods began offering all union employees at its Austin plant earned sick and safe time (ESST) in March.

However, the state law guaranteeing that benefit went into effect in January 2024, and union workers are suing to recover 14 months of benefits they say they are owed.

Four employees filed a class-action lawsuit Wednesday in Mower County District Court claiming Hormel forced employees to use vacation days during those 14 months to cover illness in order to “avoid the cost of providing additional paid leave benefits.”

United Food and Commercial Workers Local 663 said Hormel’s next-door neighbor and pork supplier, Quality Pork Processors, has not had the same issues.

“If Quality Pork Processors can implement ESST correctly, and they are right next door, why can’t Hormel do the same?” said Rena Wong, president of Local 663. The union represents workers at both plants, but the lawsuit only concerns Hormel.

Hormel, headquartered in Austin, said it does not comment on pending litigation.

The state’s ESST law, which provides for an hour of paid leave for every 30 hours worked for a maximum of 48 hours per year, is unpopular with many of the state’s employers over the increased costs the mandate imposes.

Despite the opposition, this case is the first of its kind, attorney Tim Louris said, and follows a labor arbitration ruling that went in the union’s favor earlier this year.

“Even though they’re now following the law, and even after several demands, Hormel Foods continues to refuse to provide employees with the ESST benefits that they earned during 14 months prior to March 1,” Louris said.

According to the suit, Hormel provided ESST to newer employees up until their second year of service, and those with more than two years were expected to use their vacation time for “qualifying ESST reasons.”

An arbitrator found that approach violated the union contract by “diminishing” vacation benefits.

“The employer has two legal obligations that are not mutually exclusive,” arbitrator Raleigh Jones wrote in a February ruling.

But if a contract “provides for paid vacation leave, an employer cannot use its obligations under the ESST law to diminish that collectively bargained obligation,” according to the department.

The arbitrator found that was the case for Hormel’s policy.

State Senate Majority Leader Erin Murphy said she supports the union workers’ case.

“I’m rooting for them, and so are the people of Minnesota,” she said at a news conference Wednesday morning at the Austin Labor Center.

“The bad news is a major employer is refusing to honor the workplace-safety rights that 2,000 hardworking Minnesotans deserve and expect under the law,” the St. Paul DFLer said. “The good news is that those 2,000 workers aren’t giving up without a fight, and they will have their day in court.”