(Photo: SDSU DC)
ST. PAUL, MN — February 4, 2025 — Minnesota Attorney General Keith Ellison has filed criminal charges against Keith Lawrence Schaefer, owner of Evergreen Acres Dairy, LLC, alleging systematic wage theft, racketeering, and worker abuse at his central Minnesota dairy farm.
The charges, filed in Stearns County District Court, include one count of felony racketeering and four counts of felony wage theft, each involving amounts exceeding $5,000. Prosecutors allege that Schaefer withheld wages from employees, underreported hours on paystubs, and threatened workers who questioned pay practices or sought to leave. Employees also reported unsafe and substandard housing conditions provided by the dairy.
“This case sends a clear message that Minnesota will not tolerate exploitation of workers,” Attorney General Ellison said in a statement. “Every employee deserves to be paid fairly and treated with dignity.”
The criminal case follows a civil lawsuit filed by the Attorney General’s office in January 2024, which accused Evergreen Acres Dairy and related entities of failing to pay at least $3 million in earned wages, miscalculating overtime, and making unauthorized deductions from employee pay. In October 2024, the civil case resulted in a settlement requiring the dairy to pay $250,000 in back wages and improve employee housing, but criminal charges were pursued after continued concerns about unlawful practices.
Employees reportedly worked as many as 84 hours per week, sometimes earning as little as $12 per hour without proper overtime compensation. The complaint alleges that some workers were threatened with deportation or physical harm if they complained about wages or housing conditions.
If convicted, Schaefer faces up to 20 years in prison for the racketeering charge and up to 10 years per count of felony wage theft. Criminal wage-theft prosecutions are rare in Minnesota, making this case a notable enforcement action in the agricultural sector.
The case is ongoing, and Schaefer is presumed innocent until proven guilty in court.