Yakima Co. mushroom company to pay millions in settlement over sex discrimination lawsuit

A mushroom farm in Sunnyside will pay $3.4 million to resolve a discrimination lawsuit filed last August by Washington state Attorney General Bob Ferguson.

The Ostrom Mushroom Farm site was sold during the span of legal proceedings, according to a news release this week from Ferguson’s office. This made Asellus-Sunnyside the sole owner of Ostrom, so from that point forward, both were listed as defendants.

The Attorney General’s Office investigation found numerous patterns of discrimination against female workers, according to court documents. The consent decree specifically states that Ostrom does not agree with any claims by agreeing to the settlement terms.

Early days at Ostrom Mushroom Farms

Ostrom was established in 2019, offering a promise to “bring 200 year-round, non-seasonal jobs to the Sunnyside area.” The company’s employees between January 2021 and May 2022 consisted of about 180 local pickers, a majority of whom were women.

The mushroom farm required a minimum yield of mushrooms picked per hour from its employees. Workers were told extra compensation was available for picking even more.

For some time, Ostrom had a board up for all workers to see, showing everyone’s yield. This kept workers motivated and allowed them to track their own progress toward the minimum.

In 2021, Ostrom went through management changes and hired the consultancy of H2Visa Solutions. The state Attorney General’s 2022 lawsuit accused the company of wanting to take advantage of the H-2A program while pushing out female workers following these administrative changes.

“Ostrom’s systematic discrimination was calculated to force out female and Washington-based employees,” Ferguson stated in the press release. “I want to thank the workers who spoke out against this discrimination in the face of so much danger and stood up for their rights. My team fought for them and today we secured an important victory.”

How Ostrom became toxic

The H-2A Temporary Agricultural Worker program allows certain employers to recruit non-immigrant workers for agriculture jobs. A worker’s stay in the country is granted through the program, as long as they keep working for that employer.

A company must apply to be considered for the program and meet multiple criteria, like proof job openings can’t be hired locally. Companies with H-2A workers must still post job openings locally with the same benefits.

Ostrom applied for H-2A approval in early 2021 and was denied, according to court documents. Around this time, employees began noting an increase in minimum yield counts, and less lenience when an hour was spent on other tasks, like cleaning. The yield board was also removed, so workers could no longer track their progress.

Multiple local workers reported one-on-one meetings with superiors around mid-2021. They were given a warning for failing to meet minimum yields and told they needed to improve their performance or receive a three-day unpaid suspension. Anyone with a suspension would have one week following their return to meet minimum standards, or else they would be fired.

These instances were more highly reported among women, leading to more women being fired, according to the official complaint. Between early 2021 and May 2022, Ostrom is accused of firing about 80% of local workers and 85% of female pickers.

In fact, a Facebook job listing from April 2022 was included in the lawsuit, since an Ostrom employee published the job ad asking for “only males.”

Ostrom applied for H-2A approval again, which was granted in November 2021. The company could hire up to 70 H-2A workers between December 2021 and August 2022. It hired 65, two of which were not male. During this time, local workers were offered less than H-2A workers, although the amount is not specified.

Between April 2022 and February 2023, Ostrom hired four local female pickers.

“Ostrom’s discrimination caused economic and non-economic harm to domestic workers, and constituted the willful and malicious infliction of injury,” the lawsuit stated.

Employees attempted to report the discrimination internally, but reportedly were met with retaliation. Court documents list several instances of formal warnings under false pretenses and even the physical assault of one woman using a metal cart, immediately after she met with superiors about the discrimination.

Ostrom lawsuit outcome

Around six months after the lawsuit was filed, Ostrom Mushroom Farms sold its facility back to original building owners, expressing intention to dissolve the company.

The building owners were included in the lawsuit and have been required to uphold certain standards.

Another mushroom company, Greenwod Mushrooms, is now operating in the facility and entered a legal agreement with the Attorney General’s Office to follow the same standards.

McClatchy attempted to contact representatives for Ostrom, Asellus-Sunnyside and Greenwood Mushrooms. None were immediately available for comment.

Standards expected of Ostrom, Asellus-Sunnyside and current tenants:

• Agree to not take part in alleged discriminatory practices (different standards for domestic and H-2A workers, retaliation and all other purported action of discrimination against a protected class).
• Adopt a company-wide nondiscrimination policy, reviewed by the Attorney General’s Office and available to all workers in English and Spanish.
• All supervisors must take part in a training regarding their obligations under Washington law within three months, and once a year from then on.
• Retain records of all employee recruitment, discipline and termination, including all records related to attempted H-2A program approval.

If Ostrom opens another facility in the next three years, the same terms will apply.

The lawsuit outlines that the $3.4 million will be used to pay the legal team and restitution for those affected, nothing else.

It’s estimated that around 170 former workers are eligible for compensation.

If you or someone you know should receive some of this claim, contact the Civil Rights Division by email at ostrom@atg.wa.gov or over the phone at 1-833-660-4877, option 5.

This story was originally published May 20, 2023 at 5:00 AM.