RALEIGH, NC. — Perdue Farms Inc. filed a complaint against the Department of Labor (DOL) and a poultry grower, questioning the constitutionality of their argument in a pending whistleblower case involving the poultry processor.
Craig Watts — owner and operator of C&A Farms in Fairmont, NC, and previously an independent poultry grower for Perdue — filed a whistleblower complaint against the processor in 2015 with the DOL. Watts alleged Perdue violated employee protection provisions of the Food Safety Modernization Act (FSMA).
Watts claimed Perdue retaliated against his involvement with a third-party animal rights group. The involvement refers to an incident in May 2014 when Watts invited the group to film chicks that were recently placed on his farm in good health by Perdue, according to court documents. Several weeks later, the group returned for more footage when the chickens were nearing the end of their growth cycle.
Perdue claims Watts collaborated with the group in a punitive scheme after years of complaining to the company about the amount and system of compensation as a grower. Through the video footage, Watts points out the “deplorable condition” of the chickens, arguing Perdue’s “humanely raised” label was misleading since he did not raise them humanely on his farm.
Following his participation in the video, Watts alleged he was subjected to adverse employment actions, including increased scrutiny of his operations, additional training prior to the placement of Perdue’s next flock with him, a delay in the placement of his flock and the implementation of a Performance Improvement Program. Watts sought compensatory damages for lost earnings and for wages paid to his employee as a result of these actions.
Perdue described its actions as remedial steps to ensure Watts took proper care of the chickens entrusted to him.
After reviewing his complaint, the DOL found Watts’ case to have no merit because he was not an employee of Perdue. Watts has since appealed his case multiple times, resulting in a series of additional administrative decisions.
With its complaint, filed on Aug. 20 with the US Eastern District Court of North Carolina, Western Division, Perdue is seeking declaratory relief to prevent the DOL from continuing the administrative proceedings against the processor.
Perdue claims the proceedings are unconstitutional for several reasons, including depriving Perdue’s constitutional right to a jury trial, as recently affirmed by the Supreme Court in SEC v. Jarkesy decision.