Minnesota Dairy Farm Owner Charged with Wage Theft, Racketeering

Minnesota Attorney General Keith Ellison has charged Keith Schaefer, owner of Evergreen Acres Dairy in Paynesville, with one count of racketeering and four counts of wage theft exceeding $5,000. The charges follow a previous settlement where Schaefer agreed to pay $250,000 for back wages and improve employee housing after allegations of wage theft and substandard living conditions surfaced. The criminal complaint details a systematic pattern of underpayment, including withholding final paychecks and failing to pay overtime, alongside intimidating employees with threats of violence and deportation. Investigators found evidence of severe labor abuses, including a worker being denied pay for overtime and being charged for inadequate housing infested with pests. Schaefer is scheduled to appear in court on March 17, marking one of the most significant prosecutions for wage theft since Minnesota law was amended to classify it as a felony in 2019. The case highlights ongoing issues within the dairy industry, particularly regarding the exploitation of vulnerable workers.