throbber
UNITED STATES DISTRICT COURT
`MIDDLE DISTRICT OF GEORGIA
`
`
`
`
`
`
`
` CIVIL ACTION NO.
`
`
`
`
`
`
`
`
`
`Plaintiff,
`
`Defendants.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 1 of 36
`
`
`
`
`ROGER PARKER, on his own behalf and
`on behalf of all others similarly situated,
`
`
`
`
` v.
`
`
`PERDUE FARMS, INC. and PERDUE
`FOODS, LLC,
`
`
`
`
`CLASS ACTION COMPLAINT
`
`Plaintiff Roger Parker, on behalf of himself and all others similarly situated, brings
`
`1.
`
`this action against Defendants Perdue Farms, Inc. and Perdue Foods, LLC (collectively, “Perdue”)
`
`for damages and other appropriate relief related to their misclassification of Parker as an
`
`“independent contractor.” Despite inducing chicken farmers (known in the industry as “growers”)
`
`to contract to raise chickens with Perdue through promises of independence, Perdue treated Parker
`
`and all of its growers as controlled employees under both federal and Georgia law. As an
`
`employee, Parker was entitled to various federal and state wages, benefits, and other payments that
`
`Perdue did not provide, even though Perdue knew that Parker should have been classified as an
`
`employee based on the level of control Perdue exercised over Parker’s chicken growing operation.
`
`Perdue treats all of its growers across the country in the same fashion, using the same restrictive
`
`contracts and guidelines with all of them to dictate nearly every aspect of how they run their farms.
`
`2.
`
`Through this and other conduct described herein, Perdue violated various state and
`
`federal laws regarding the wages and benefits that it was obligated to offer its growers as
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 2 of 36
`
`
`
`employees, and also defrauded its growers, breached the contracts it entered into with its growers,
`
`and unjustly enriched itself at its growers’ expense.
`
`3.
`
`Perdue also terminated Parker’s grower contract due to Parker contacting the U.S.
`
`Department of Agriculture (“USDA”) about a potential violation by Perdue of the Packers &
`
`Stockyards Act (“PSA”). After Perdue became aware that Parker had contacted the USDA, his
`
`Perdue supervisor told him he should not have talked to the government and made clear that Perdue
`
`was angry with him for having done so. Perdue subsequently retaliated against Parker by, among
`
`other things, denying routine lines of credit while requiring him to make expensive and
`
`burdensome upgrades to his farm and, ultimately, terminating his contract by refusing to deliver
`
`him flocks. Because these actions were taken not because of Parker’s performance as a grower
`
`but because he reported a potential violation of law to the appropriate authorities, Perdue’s
`
`retaliation against Parker violated the PSA’s prohibition against unfair, discriminatory, and unduly
`
`prejudicial treatment of farmers. Thus, Parker brings a claim under the PSA on behalf of himself
`
`for this wrongful conduct.
`
`PARTIES
`
`4.
`
`Plaintiff Roger Parker is a resident of Abbeville, South Carolina who worked under
`
`contract as a grower for Defendants Perdue Farms, Inc. and Perdue Foods, LLC in Milledgeville,
`
`Georgia.
`
`5.
`
`Defendant Perdue Farms, Inc. is a Delaware corporation with its principal place of
`
`business in Salisbury, Maryland.
`
`6.
`
`Defendant Perdue Foods, LLC is a limited liability company with its principal place
`
`of business in Salisbury, Maryland. Perdue Foods, LLC is a wholly owned subsidiary of Perdue
`
`Farms, Inc.
`
`
`
`2
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 3 of 36
`
`
`
`JURISDICTION AND VENUE
`
`7.
`
`This Court has subject matter jurisdiction over Plaintiff’s federal claims pursuant
`
`to 28 U.S.C. § 1331 because Plaintiff’s federal wage claims and PSA claim arise under federal
`
`law. The Court has supplemental jurisdiction over Parker’s state-law claims under 28 U.S.C.
`
`§ 1367, because they arise out of the same transactions and occurrences as Parker’s federal claims.
`
`8.
`
`Moreover, the Court has jurisdiction over this class action under 28 U.S.C.
`
`§ 1332(d) (the Class Action Fairness Act), because the amount in controversy is greater than
`
`$5,000,000, and some members of the class (including Parker) are citizens of a different state than
`
`Perdue.
`
`9.
`
`Venue is proper in this judicial district pursuant to 28 U.S.C. § 1391(b) and (c),
`
`because Defendants transact business in, are found in, and/or have agents in this judicial district,
`
`and because some of the actions giving rise to this Complaint took place within this district.
`
`10.
`
`The Court has personal jurisdiction over both Perdue entities. Defendants have
`
`transacted business and maintained substantial contacts in this judicial district, and much of the
`
`conduct underlying this controversy took place in this jurisdiction.
`
`FACTUAL BACKGROUND
`
`11.
`
`“Broilers” are chickens raised for meat consumption. Modern broilers are generally
`
`slaughtered when they are about six weeks old.
`
`12.
`
`After the 1950s, the U.S. broiler industry began to shift away from individual
`
`farmers raising chickens and selling them to live poultry dealers or poultry processors. Between
`
`1950 and 1960, the percentage of independent poultry farmers relative to contract farmers (farmers
`
`under exclusive contracts with a single chicken processing company) dropped from 95% to 5%.
`
`
`
`3
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 4 of 36
`
`
`
`During this time, large companies known as “integrators” began to combine the various stages of
`
`production, a process known as vertical integration.
`
`13.
`
`Several decades ago, these contract growers were actually independent—they
`
`relied on their skills and knowledge to grow the most high-quality birds they could while managing
`
`their own input costs and growing conditions. When they delivered a premium product to the
`
`poultry processor they were rewarded with higher prices or bonuses. In sum, growers were fairly
`
`compensated for the skill, expertise, and labor they provided. Today, growers working for Perdue
`
`have a very different relationship.
`
`14.
`
`Perdue is the third largest broiler chicken company in the country. Perdue is highly
`
`vertically integrated, with its employees overseeing almost every aspect of the process. As
`
`discussed further below, this includes, among other things, growing the chicken feed, hatching the
`
`chicks, veterinary care, transportation, slaughtering, marketing, and selling of the final product.
`
`15. While Perdue now directly owns almost all of its broiler supply chain, it has
`
`generally not purchased the farms where its chicks are raised to full weight. Instead, Perdue
`
`outsources the process of raising birds to broiler growers that Perdue calls “independent
`
`farmers”¾but in truth, the growers are anything but independent.
`
`16.
`
`Perdue’s growers raise chickens that Perdue owns from shortly after hatching for
`
`about six weeks until they are large enough to slaughter. Perdue recruits growers by promising
`
`them independence and financial success.
`
` In recruitment materials, Perdue promises
`
`“independence” and claims: “As a poultry farm owner, you’ll never punch a time clock, and you’ll
`
`have the satisfaction of leading your own business[.]”
`
`17.
`
`But Perdue refuses to grant growers the independence they were promised or the
`
`compensation they are entitled to.
`
`
`
`4
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 5 of 36
`
`
`
`18.
`
`In reality, Perdue controls virtually every aspect of growers’ operations. There is
`
`no “independence” for growers under contract with Perdue, despite the growers shouldering most
`
`of the financial risk—including the large investment necessary to build barns (to Perdue’s
`
`specifications), and the risk of loss if a flock is lost due to a power outage or disease. Indeed, this
`
`financial risk—and Perdue’s unwillingness to compensate growers with the wages and benefits to
`
`which employees are entitled—is why Perdue falsely classifies its growers as “independent.” In
`
`reality, however, Perdue’s growers are employees entirely under the control of Perdue. Perdue
`
`knows the level of control it exercises over growers entitles them to treatment under the law as
`
`employees, but it does not treat them as such in order to boost its profits.
`
`19.
`
`Perdue requires growers to work exclusively for Perdue. After the contract is
`
`signed, Perdue uses onerous guidelines to take this exclusivity to extreme lengths: for example,
`
`preventing growers and their “family members” from even visiting a farm associated with a
`
`different integrator.
`
`20.
`
`By misclassifying growers, Perdue offloads enormous capital costs and financial
`
`risks onto them. Instead of being responsible for the cost of constructing chicken houses,
`
`upgrading equipment, managing waste, and potentially losing chickens to natural disasters or other
`
`unexpected circumstances, Perdue forces growers to bear these costs by deceptively classifying
`
`growers as independent contractors while meticulously controlling virtually every moment and
`
`every aspect of their work.
`
`21.
`
`Indeed, this offloading of the responsibility to incur financial liabilities and large,
`
`ongoing debt payments is not only a primary financial reason Perdue misclassifies its growers as
`
`“independent contractors”—Perdue also uses the investments it repeatedly obligates its growers to
`
`make to trap growers into continuing to work for Perdue even after they discover that they were
`
`
`
`5
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 6 of 36
`
`
`
`not given the independence they were promised. Having taken on large loans to pay for facilities
`
`and upgrades¾and then being required to take on even more debt for further upgrades and
`
`equipment¾growers have no meaningful choice but to continue growing for Perdue as long as
`
`Perdue permits them to.
`
`22.
`
`Put differently, Perdue has devised a scheme to saddle growers with risk and debt,
`
`while at the same time directing and controlling every aspect of the chicken growing process and
`
`refusing to compensate growers in the manner that federal law requires.
`
`23.
`
`Growers are a key part of Perdue’s chicken business; without growers, Perdue’s
`
`chicken business would not be able to function.
`
`24.
`
`To begin working as a grower, farmers like Parker must make large investments in
`
`barns and equipment, and then ultimately must make upgrades. A farmer must build “grow out”
`
`houses that will hold thousands of chickens. These houses are expensive to construct and maintain,
`
`often requiring growers to take out large loans to finance them.
`
`25.
`
`Perdue requires growers to build houses for the chickens to precise specifications
`
`dictated by Perdue. After the houses are built, Perdue forces growers to pay for costly, highly
`
`specific facility or equipment changes. Perdue threatens to sever grower contracts—which
`
`growers rely on to repay their significant loans—if a grower does not make the costly changes to
`
`Perdue’s exact specifications. And whenever Perdue decides, those specifications change over
`
`time, requiring growers to make even more significant payments and often go further into debt.
`
`26.
`
`Perdue growers are not required to have experience as chicken growers when they
`
`enter into their first contract with Perdue. Perdue trains growers and monitors whether growers
`
`are following Perdue’s guidelines.
`
`
`
`6
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 7 of 36
`
`
`
`27.
`
`Perdue uses a form contract with its growers (“Poultry Producer Agreement”)
`
`nationwide. The contract is not negotiated between Perdue and each grower, as would be expected
`
`in a business-to-business relationship. Instead, every grower must sign the same contract.
`
`28.
`
`The Poultry Producer Agreement attempts to assert that growers (referred to in the
`
`Agreement as “producers”) are independent contractors, not employees. The Agreement states
`
`that it is “a service contract and not a contract of employment and PERDUE and PRODUCER are
`
`each independent contractors.”
`
`29.
`
`The Poultry Producer Agreement states that growers will perform work “using the
`
`skills, knowledge, and discretion” that each grower “possesses.” This is false, as becomes clear
`
`well after a grower signs the Poultry Producer Agreement.
`
`30.
`
`The Poultry Producer Agreement requires that growers “comply with any bio-
`
`security policies, audits, measures or guidelines required by PERDUE.” But, notably, those
`
`Perdue “guidelines” and “biosecurity policies” are not provided until after a grower signs their
`
`contract with Perdue. In this way, Perdue entices growers with marketing materials and
`
`contractual language that promises them independence while knowing that Perdue will
`
`subsequently control every material aspect of these growers’ work.
`
`31.
`
`The reason Perdue would like to classify growers as independent contractors and
`
`not employees is plain: money. Employees, unlike independent contractors, are entitled to prompt
`
`payment of certain financial benefits, such as a minimum wage. Employees are also entitled to
`
`compensation for costs and expenses their employers require them to undertake as part of their
`
`employment.
`
`32. While controlling the method, manner, and timing of growers’ work, Perdue
`
`simultaneously forces growers to bear economic risks that are the result of Perdue’s decisions.
`
`
`
`7
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 8 of 36
`
`
`
`Perdue controls all the inputs that contribute substantially to the size of the chickens (the type and
`
`quantity of feed, the breed and size of the chicks delivered and picked up, the temperature,
`
`medications, and the method and manner of raising chickens). But if those inputs controlled by
`
`Perdue result in smaller chickens, Perdue reduces growers’ pay.
`
`33.
`
`Growers are often unable to make enough money for basic living expenses under
`
`the compensation scheme that Perdue has designed, indicating that Perdue’s growers are often paid
`
`less than the minimum wage for their time worked.
`
`34.
`
`Rather than properly pay its growers, Perdue wants to have its cake and eat it too:
`
`have growers that function as controlled employees but compensate them as if they are
`
`independent contractors and force them to bear financial burdens that employees should not have
`
`to bear.
`
`35.
`
`Parker’s experience is emblematic of Perdue growers. Parker’s contract from
`
`Georgia is materially identical to a contract that Perdue used in North Carolina and South Carolina
`
`in 2016, but for a single provision in the latter restricting photography on the farm. On information
`
`and belief, Perdue has used and continues to use a uniform contract nationwide with all of its
`
`growers.
`
`36.
`
`Perdue assigns a supervisor to each grower. These supervisors are misleadingly
`
`called “Flock Advisors,” rather than what they actually are: managers. In fact, Parker’s supervisor
`
`states in his online resume that his title is “Grower Manager” – a much more accurate job title
`
`description than the one Perdue strategically has used in public-facing communications.1
`
`
`1 As discussed below, Perdue uses multiple titles for this position. Whatever title Perdue
`creates, these individuals act at all times as the manager of the individual growers under their
`supervision wherever they are located.
`
`
`
`8
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 9 of 36
`
`
`
`37.
`
`These supervisors visit farms with chickens at least weekly to ensure growers are
`
`complying with Perdue’s requirements. During these visits, the supervisor conducts an inspection
`
`and assigns tasks to the Perdue grower they manage.
`
`38.
`
`In an attempt to obfuscate the level of control the Poultry Producer Agreement gives
`
`Perdue over growers, Perdue hides many of its requirements in other guidelines¾guidelines that
`
`are not provided to growers until after they sign the Poultry Producer Agreement. Perdue requires
`
`that growers “adhere to the PERDUE Poultry Welfare and Bio-Security Programs.” It further
`
`contractually requires that growers “comply with any bio-security policies, audits, measures, or
`
`guidelines required by PERDUE.” Perdue’s supervisors evaluate and grade growers’ compliance
`
`with the company’s bio-security guidelines.
`
`39.
`
`The written guidelines issued to growers are incredibly detailed. Compliance with
`
`the guidelines requires following Perdue’s directions about every aspect of the growing operation.
`
`And the Poultry Production Agreement states that “[i]n the event the grower is not fulfilling his/her
`
`obligations then this agreement may be terminated.”
`
`I.
`
`Perdue’s Right to Control
`
`40.
`
`Perdue exercised its right to control every aspect of the time, method, and manner
`
`of Parker’s work, whose experience is typical of other Perdue growers. Using broad language and
`
`terms that are not defined for the grower, Perdue lays the groundwork for its scheme in the Poultry
`
`Producer Agreement:
`
`PRODUCER AGREES: To accept the birds when consigned and to raise
`the birds until removed at PERDUE’s direction from the PRODUCER’s
`farm…To comply with any bio-security policies, audits, measures or
`guidelines required by PERDUE…To provide care for the health and
`welfare of the flock in accordance with and adhere to the PERDUE Poultry
`Welfare and Bio-Security Program… PERDUE may enter upon the
`premises of the PRODUCER where the flock is or shall be located to inspect
`the flock or facilities. If PRODUCER is not satisfactorily performing
`
`
`
`9
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 10 of 36
`
`
`
`PRODUCER’S obligation under the Agreement to care for, treat and
`maintain the flock.... PERDUE shall be fully authorized, without prejudice
`to any and all other legal rights and remedies it may have, to enter upon the
`premises of the PRODUCER where the flock is located, either to feed and
`care for the flock on PRODUCER’s premises or to take immediate
`possession and to remove or dispose of said flock in such manner as
`PERDUE may see fit.
`
`After contract signing, Perdue then exercises control at a level that could never be
`
`41.
`
`anticipated by the contract, both through the use of “guidelines” that are not disclosed at the time
`
`of signing and through the use of managers, whose power over growers could not be anticipated
`
`by any reading of the Poultry Producer Agreement. Perdue’s actual control over the methods,
`
`manner, and timing of growers’ work is detailed below.
`
`a. Methods
`
`42.
`
`Perdue controls the methods used to raise chickens. Despite promises of
`
`independence in the Poultry Producer Agreement and marketing materials, Perdue controls the use
`
`of specific methods for raising chickens down to extreme levels of detail. It does this primarily
`
`through two mediums: extensive guidelines that are provided after contract signing and the Perdue
`
`managers who are assigned to growers after contract signing.
`
`43.
`
`On a day-to-day basis, Perdue exercises control over methods through each
`
`grower’s manager. While the Perdue Poultry Producer Agreement misleadingly defines these
`
`supervisors as “Advisors,” it becomes clear well after contract signing that it is not optional to
`
`accept their advice. These supervisors oversee, discipline, train, and manage growers like Parker.
`
`As noted above, supervisors are referred to as “Flock Advisors,” but can also be called “Growout
`
`Managers,” “Live Production Managers,” or other similar terms. Perdue requires growers to report
`
`any issues with chickens to their supervisor within 24 hours and requires growers to produce
`
`records to their supervisor on demand.
`
`
`
`10
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 11 of 36
`
`
`
`44.
`
`According to recent job listings in at least four states, a Perdue Flock Advisor
`
`“Works directly with assigned contract producers to improve company profitability and
`
`competitive position by implementing production programs and documenting producer
`
`compliance at each visit to the farm.” Another job listing explains: “The purpose of a Flock
`
`Advisor is to protect the Perdue Farms, Inc. brand name. Improve company profitability by serving
`
`as a representative overseeing the people, poultry and daily operations on his/her route” (emphasis
`
`added.)
`
`45.
`
`A recent job listing by Perdue in Georgia for a “Growout Manager” provides even
`
`more detail:
`
`[A Growout Manager] Provides leadership, training and coaching to
`associates, as well as producers to ensure all company policies and
`programs are being met… Drives program compliance and competitive
`farm performance. In farm management, meets all facility operational plans
`to ensure scheduling of placements, harvest, health checks and accurate
`weight projections for bird movements. Reports on progress to include
`physical farm improvements, performance metrics and safety. As a Housing
`Manager, works with new prospects and existing growers to add the square
`footage needed to meet the needs of the complex. Manages the average
`service cost of the complex to not exceed the current average by
`strategically locating new farms as close as possible to the plant locations.
`Facilitates the construction of square footage by evaluating new sites,
`introducing prospects t[o] lenders, working with builders and equipment
`companies to provide quotes to prospects, arranging grading bids and
`manages the scheduling of contractors to attain the most equate footage in
`the least amount of time. Develops new grading contractors, builders,
`equipment vendors and electricians to facilitate the additional expansion.
`Works with lenders, zoning, university staff and extension to help facilitate
`the expansion project.
`
`Another recent job listing by Perdue for a “Housing Manager” in Indiana explains
`
`46.
`
`that in addition to working “directly with assigned contract producers to… implement[] production
`
`programs and document[] producer compliance at each visit to the farm,” this position is heavily
`
`involved in overseeing growers’ construction projects:
`
`
`
`11
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 12 of 36
`
`
`
`[A Housing Manager] acts as general contractor for new construction and
`renovation of existing structures. Monitors the day to day work of the
`contracted construction crews. Coordinates with the producers, vendors and
`subcontractors. Works with perspective [sic] farmers laying out the
`construction of new poultry houses and the renovation of aging houses
`ensuring that the environment provided to the flocks meets the requirements
`of the operation. Purchases an[d] transports local materials and equipment
`to the job sites. Provides estimates of the remodeled construction cost of
`existing poultry facilities.
`
`In addition to the day-to-day management by its supervisors, the other primary way
`
`47.
`
`that Perdue controls the methods of growers’ work is through written guidelines disclosed after a
`
`grower signs a contract. The guidelines give Perdue wide-ranging, constant, and nearly unfettered
`
`control over virtually every aspect of its growers’ work. Compliance with these guidelines is
`
`mandated by the Poultry Producer Agreement even though growers are not provided with the
`
`guidelines prior to signing.
`
`48.
`
`These guidelines are incredibly detailed and conveyed in written and verbal
`
`communication from Perdue. For example, Perdue issues temperature guidelines that provide the
`
`exact degree temperature at which the grow out houses should be kept. This requirement changes
`
`throughout the day and requires specific humidity levels and ammonia levels. Perdue further
`
`requires specific methods of operating fans and ventilation. Perdue requires specific heights for
`
`water drinkers and specific hours for operation of lighting. Indeed, Perdue even requires grass
`
`outside of chicken houses to be cut on a schedule controlled by Perdue’s delivery of chicks and
`
`Perdue’s supervisors.
`
`49.
`
`Perdue’s guidelines require use of both specific methods for euthanizing chickens
`
`and specific timelines for identifying and removing dead chickens.
`
`50.
`
`Perdue’s contract also requires growers to comply with Perdue’s “Poultry Welfare
`
`and Bio-Security Programs” which contain detailed requirements on housing and feeding
`
`
`
`12
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 13 of 36
`
`
`
`chickens, including on issues not clearly related to animal welfare or bio-security. (Again, these
`
`guidelines are not provided to growers before signing the contract.) For example, growers are
`
`banned from visiting other farms, banned from allowing “unauthorized” visitors on their land (but
`
`must permit Perdue supervisors on their land), and required to post Perdue’s biosecurity signs on
`
`their farm.
`
`51.
`
`Perdue required Parker to report “within 24 hours” to his supervisor “if any birds,
`
`for any reason, do not develop normally…” Each flock includes thousands of birds. Therefore,
`
`on information and belief, this extraordinarily broad requirement is often practically impossible to
`
`comply with and serves as both a method of controlling growers like Parker and as a pretext for
`
`termination.
`
`52.
`
`Even after it picks up its chickens, Perdue mandates that growers adhere to
`
`guidelines for cleaning, maintenance, and preparation for a future delivery of chickens.
`
`53.
`
`Per the Poultry Producer Agreement, growers “can be immediately terminated by
`
`PERDUE” for failure of “proper house management or care.” On information and belief,
`
`determination of “proper house management or care” is entirely at Perdue’s discretion and can be
`
`used to terminate growers for almost any reason, which is not disclosed to growers at contract
`
`signing.
`
`54.
`
`Despite the promises made in the Poultry Producer Agreement, growers are not
`
`permitted to use their own “skills, knowledge, and discretion” to implement methods that would
`
`improve the growth of the chickens. For example, lighting changes that Parker believed would
`
`improve the growth and welfare of the chickens were barred by Perdue’s guidelines.
`
`
`
`13
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 14 of 36
`
`
`
`b. Manner
`
`55.
`
`Perdue controls the manner of raising chickens too. Most obviously it does this by
`
`controlling all the inputs used to raise chickens, including the chicks themselves. Perdue requires
`
`the use of specific feed, medication, vaccinations, and “other supplies”¾all of which are provided
`
`by Perdue and which growers cannot substitute for inputs of their own choosing. Perdue dictated
`
`that Parker only use approved specific types of feed and medication, and Parker “[could] be
`
`immediately terminated” by Perdue for using unapproved feed or medication.
`
`56.
`
`According to the Perdue Poultry Producer Agreement, “PERDUE will determine
`
`in its sole and absolute discretion: a. the breed of chickens PRODUCER will receive; b. the number
`
`and density of chickens in each flock delivered to PRODUCER’s farm; c. the size, weight and age
`
`of the chicken to be produced; d. the time for processing each flock; and e. the date, time and
`
`estimated interval of placement for future flocks.” As discussed further below, Perdue’s sole and
`
`absolute control of the type, timing, and health of chickens is not only a clear manifestation of its
`
`right to control Parker and other growers but also has significant impact on the compensation of
`
`growers.
`
`57.
`
`Parker, like all Perdue growers, had to use feed provided by Perdue. The Poultry
`
`Producer Agreement states that growers must “adhere to the instructions provided by PERDUE
`
`regarding feed and water withdrawal times prior to the catching of the flock.” Again, growers
`
`learned how much control that provision gave Perdue only after signing their contracts. Growers
`
`have no control over the timing of feed deliveries, which can and often do happen in the middle of
`
`the night. Growers must be present at the time of the deliveries and have no right to refuse delivery
`
`of feed or to reschedule deliveries. Perdue also controls the type of feed growers receive, including
`
`its nutritional content and which type of feed should be used at different points of the growth cycle.
`
`
`
`14
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 15 of 36
`
`
`
`58.
`
`As is typical for Perdue growers, Perdue controlled the type of materials Parker was
`
`allowed to use, down to the type of cleaning supplies, and insisted that use of any chemicals “in
`
`or around” barns be approved in writing by Perdue. According to the Poultry Producer Agreement,
`
`“PRODUCER shall not administer or allow to be administered any substance to the flock,
`
`including, without limitation, use of any medication, vitamins, minerals, vaccines, disinfectant,
`
`insecticide, pesticide, rodenticide, fungicide, herbicide or other chemicals in or around the poultry
`
`houses unless authorized and instructed to do so in writing by PERDUE.”
`
`59.
`
`For example, Perdue’s written instructions to Parker in late September 2019
`
`included specific brands of drinkers to install along with down-to-the-inch requirements on the
`
`spacing of water nipples. Similarly, in May 2019, a Perdue supervisor wrote an email to Parker
`
`after a visit to his farm with a litany of changes Perdue required him to make on issues as specific
`
`as the number of fans, the height of water lines, and location of feeders.
`
`60.
`
`Perdue requires growers to pay for expensive changes to their chicken houses to
`
`comply with Perdue-specific specifications on equipment and facilities. This includes mandating
`
`specific models or brands of equipment to be used. Forcing growers to work inside facilities that
`
`are effectively designed for Perdue is another way that Perdue controls the methods and manner
`
`of growers’ work.
`
`61.
`
`These changes usually require growers to take out large loans. These loans further
`
`tie the growers to Perdue because a continuing contract is often a requirement of the loan and
`
`because of the close relationship between Perdue and banks that lend to its growers. For example,
`
`Perdue automatically deducted payments from Parker’s compensation to pay the bank on his
`
`behalf, despite Perdue ostensibly not being a party to the loan.
`
`
`
`15
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 16 of 36
`
`
`
`62. When events outside of a grower’s control (like extreme weather) impact a farm,
`
`Perdue exercises control over the response to those events. For example, Perdue dictated to Parker
`
`that a barn damaged by extreme weather must be demolished instead of repaired and Perdue
`
`insisted that a bulldozer level the barn and crush the live chickens inside over Parker’s objections.
`
`63.
`
`Perdue even retains the authority to take over a grower’s farm at Perdue’s
`
`discretion. Growers are required to assume the cost of Perdue taking over their own farm. Even
`
`without invoking that authority, Perdue and Perdue’s designated supervisors acted as though they
`
`were entitled to exercise broad control over Parker’s farm. For example, after an unannounced
`
`visit to his farm in 2019, Parker’s supervisor from Perdue wrote an email to Parker with a detailed
`
`list of eleven changes that needed to be made.
`
`c. Time
`
`64.
`
`Perdue controls the schedule of its growers’ work at every phase of the chicken
`
`growing process.
`
`65.
`
`First, Perdue controls the timing for delivery of chicks. Perdue insists growers have
`
`to be available to accept birds “when consigned” and have to “be present or represented when birds
`
`are delivered and during the catching and movement of each flock.” While not detailed in the
`
`contract, supervisors make clear to growers that having feed, water, heat, and ventilation to
`
`Perdue’s specific specifications at the time of placement of chicks is mandatory. In its guidelines,
`
`provided after contract signing, Perdue details an extensive list of requirements to be completed
`
`on a specific schedule before chick placement (the timing of which is determined by Perdue). For
`
`example, temperature monitoring requirements begin “48 hours prior to” Perdue’s arrival and air
`
`measurements must be done at a specific time.
`
`
`
`16
`
`

`

`Case 5:22-cv-00268-TES Document 1 Filed 07/22/22 Page 17 of 36
`
`
`
`66.
`
`Second, Perdue controls the timing o

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket