Business
Exploitation, retaliation, alarming conditions: Inside the crisis at West Coast mushroom farms
There had been rumors swirling that the mostly female workforce at the mushroom farm in Sunnyside, Wash., was getting replaced with men, but Isela Cabrera tried to keep her head down, and hold on to her job.
Then hourly quotas for picking mushrooms increased. Women she worked alongside were getting written up, or let go. Co-workers were disciplined or fired for calling in sick or refusing to work 12-hour shifts because they had children at home.
It wasn’t long before new workers, mostly men, were bused into the farm in vans, taking the place of the fired women. Some of the new pickers looked like they were no more than 15 years old, several current and former workers at the farm told The Times.
“Little by little, they’re getting rid of the local workers,” said Cabrera, who worried the job she had for more than two years was at risk. “They fired people without saying anything, just gone.”
Ostrom Mushroom Farms agreed to pay a $3.4-million fine in May to settle a lawsuit filed by Washington’s Office of Attorney General, which accused the business of discriminating against its employees by replacing its mostly female workforce with male guest workers brought into the country through the federal H-2A Temporary Agriculture Program.
The program is meant to help companies find foreign labor when local workers are unable or unwilling to do the work. But prosecutors and workers say the company was trying to replace local employees with foreign workers who could be paid less and were willing to work longer hours.
The allegations of retaliation and worker discrimination surfaced only after workers tried to organize a labor union, just as hazardous working and living conditions were discovered at another mushroom farm in Half Moon Bay, Calif., only after a disgruntled worker killed seven people.
Advocates say the conditions in the mushroom farms in Sunnyside and Half Moon Bay highlight how discrimination and illegal working conditions in the industry can often go unreported because workers — who have few resources or advocates— are afraid to speak up for fear of being fired.
“It took a shooting for stuff to come forward in Half Moon Bay,” said Antonio De Loera-Brust, spokesperson for the United Farm Workers Union, which worked to unionize the Sunnyside farms. “It’s taken an extensive organizing campaign and actions by workers to come to light in Ostrom, which makes you think — where are the places where this is happening without anyone knowing?”
Ostrom sold the farm in the middle of the lawsuit to Windmill Farms, but officials said the terms reached by the settlement will also pertain to the new owners.
Days before the Washington attorney general announced the settlement, investigators disclosed in documents obtained by The Times that a federal probe was also underway into allegations of wage theft, violations of the H-2A program and child labor laws on the farm. It was not clear what prompted the federal investigation, but labor organizers say they have been calling for such intervention for months.
Officials at Ostrom Mushroom Farms and Windmill Farms did not respond to questions about the suit settlement and ongoing investigation.
Although minors are allowed to work on farms, according to the Washington State Department of Labor & Industries, those who are 14 or 15 years old are limited to three hours a day and 21 hours a week on school weeks. Those who are 16 and 17 are allowed four hours a day and 28 hours in a school week.
Multiple former and current workers at the farm said those who appeared to be minors easily exceeded those daily work limits.
One former worker, who asked not to be identified for fear of being deported, told The Times he was brought to the farm as a contractor when he was 17. He believes he arrived as an H-2A worker, but said he was unsure because he doesn’t know how to read, saying his paperwork was handled by the recruiter who took him to Washington for work.
He came to the U.S. on a work visa, but owed about $10,000 to the company that helped handle his paperwork and transportation, he said.
There was no work for him in Mexico, he said, and his family needed the help. At the farm, he regularly worked up to 15 hours a day, he said.
“I needed to work because of my family,” he said. “I left to get ahead because there was no money there.”
When workers spoke up about working conditions, Washington Atty. Gen. Bob Ferguson said at a news conference, managers at the farms retaliated, threatened their jobs and at least once assaulting a worker.
The company’s actions, Ferguson said, were “calculated, systemic discrimination” intended to “force out female and Washington-based employees.”
Nearly two months after the lawsuit settlement, current and former workers at the farm say their jobs are still at risk. Retaliation is still a threat, and many fear being replaced by foreign workers who continue to be driven into the farm as contract laborers. Workers voted in September 2022 to unionize but the company has not recognized the union.
State and federal investigations into the 43-acre farm in Sunnyside have confirmed some of the workers’ claims.
On Thursday, the U.S. Department of Labor Wage and Hour Division announced that Ostrom Mushroom farms failed to pay migrant workers the required wage and provide them cooking facilities, violating specific requirements from the H-2A visa program.
Ostrom farms also failed to get inspections of worker housing facilities, as well keeping required pay stubs, the federal agency said.
One migrant worker, according to the agency, was found to have paid a recruiter $10,000 for a visa, another violation of the H-2A program.
The Department of Labor recovered $59,850 in unpaid wages for 62 workers, according to the agency, and levied $74,642 in penalties for the violations.
“Employers participating in the H-2A guest worker program must make sure that they provide housing as required, that housing is sanitary, that vehicles used to transport workers are safe and that workers are paid correctly for all hours they work,” said Thomas Silva, district director of the Wage and Hour Division of the Department of Labor. “Our nation depends on agricultural industry workers to feed our families, and we are committed to making certain industry employers fulfill their legal responsibilities.”
Since the lawsuit was settled, UFW representatives say 13 more local workers have been fired from the farm, including three who were part of the labor union organizing committee. Four others left of their own accord, but cited retaliation as the reason for leaving.
A letter from the U.S. Department of Labor, dated May 11, asks that anyone who has worked at the farm since Aug. 22, 2021, be given “prosecutorial discretion” by the Department of Homeland Security — meaning that they not be placed on immigration proceedings to be deported so they could be available to cooperate with the investigation.
“The investigation will determine whether Ostrom Mushroom Farms, LLC has complied with H-2A program obligations, minimum wage, child labor, and overtime pay requirements,” the letter reads.
Labor organizers say the workers are in a precarious position, similar to what other field laborers across the country face. Workers are eager to improve their working conditions but scared that speaking up can cost them their livelihoods.
Pitting foreign workers against local employees, and exploiting vulnerable workers, is common in the industry, UFW officials said, and much of it never gets public scrutiny.
“I’m sure there are other places where this is happening that we’re not aware of,” said De Loera-Brust.
In Half Moon Bay, workers were found to be living in homes that had not been approved or inspected by local or state officials. Images showed structures with plastic walls, unfinished floors and propane tanks used for outdoor cooking.
These tragedies are happening everywhere. It just happens to be mushrooms that we’re talking about, but it’s happening everywhere, it’s happening in every industry.
— Teresa Romero, United Farm Workers
Workers in Colorado said a mushroom farm that had employed them closed suddenly, leaving them owed thousands in unpaid wages. They also alleged that some workers who suffered injuries due to unsafe working conditions had been threatened with having immigration authorities called if they complained, the Colorado Sun reported.
UFW officials say the troubles are not limited to the mushroom industry. In November 2021, two dozen people were indicted by the U.S. Department of Justice in what was called “Operation Blooming Onion,” a multi-year investigation into allegations that workers from Mexico and Central America had been held in unsanitary, fenced-in camps, were underpaid and threatened at gunpoint to work in farms in Georgia. The defendants, officials alleged, fraudulently used the H-2A visa program. Officials described conditions, where workers were raped, sold and traded to other conspirators, as “modern day slavery.”
“These tragedies are happening everywhere,” said Teresa Romero, president of the UFW. “It just happens to be mushrooms that we’re talking about, but it’s happening everywhere, it’s happening in every industry.”
Even when wrongdoing is found by companies, the penalties are often not significant enough to bring about change, Romero said.
In Half Moon Bay, the two mushroom farms were fined for dozens of violations, including not having plans to notify employees in case of an emergency, like an active shooter, and failing to provide safety training.
Concord Farms, cited for 19 violations, according to Cal/OSHA, was fined $51,770. California Terra Garden was fined $113,800 for 22 violations.
For putting workers in illegal housing conditions, the farms were cited $400 each, according to records.
Enforcement of worker-protection laws can be lax and employees dependent on the work risk losing their livelihood by coming forward, she said.
“The laws on the books are not the laws in the fields,” Romero said.
I’m enduring these injustices because I need to. I have to.
— An anonymous mushroom worker
Despite the $3.4-million settlement with Ostrom Mushroom Farms, workers say they still fear losing their jobs if they speak up.
Maria Toscano, 30, quit her job at Ostrom farms in June 2022, but is still a member of the union organizing committee. She remained involved, she said, because she saw women being fired when they refused to work long hours with kids waiting at home.
“They’d say it was because we have kids, because we have appointments,” she said. “So we don’t have a right to have a job just because we’re mothers?”
Without knowing ahead of time when they could go home, Toscano said, it was difficult for mothers like her to plan ahead for doctor appointments for her children, or to know when she’d need someone to watch over her kids late into the night.
She’s still working as a picker at a nearby farm, she said. The work is not as reliable and the pay is less.
“They treat me better, though,” she said.
A current Windmill employee, who asked not to be identified, said not much has changed since the lawsuit settlement. In some cases, 15 people are being assigned the work that once was done by 40, the worker said.
She still sees the contractor vans of male workers pulling into the farm, she said. She and others still worry they will be eventually pushed out.
One of the contract workers, she said, told her they were 15 years old, yet they regularly worked 15-hour days for about six months.
“There’s something wrong going on,” she said.
“Every day, we don’t know if we’ll have a job,” said one worker. “I’m enduring these injustices because I need to. I have to.”
The stress, she said, has caused her to have painful headaches.
“They humiliate you just so you can earn a cent for your kids,” she said. “I think I’m going to lose it. I can’t take it anymore, but I will try.”
Business
SEC probes B. Riley loan to founder, deals with franchise group
B. Riley Financial Inc. received more demands for information from federal regulators about its dealings with now-bankrupt Franchise Group as well as a personal loan for Chairman and co-founder Bryant Riley.
The Los Angeles-based investment firm and Riley each received additional subpoenas in November from the U.S. Securities and Exchange Commission seeking documents and information about Franchise Group, or FRG, the retail company that was once one of its biggest investments before its collapse last year, according to a long-delayed quarterly filing. The agency also wants to know more about Riley’s pledge of B. Riley shares as collateral for a personal loan, the filing shows.
B. Riley previously received SEC subpoenas in July for information about its dealings with ex-FRG chief executive Brian Kahn, part of a long-running probe that has rocked B. Riley and helped push its shares to their lowest in more than a decade. Bryant Riley, who founded the company in 1997 and built it into one of the biggest U.S. investment firms beyond Wall Street, has been forced to sell assets and raise cash to ease creditors’ concerns.
The firm and Riley “are responding to the subpoenas and are fully cooperating with the SEC,” according to the filing. The company said the subpoenas don’t mean the SEC has determined any violations of law have occurred.
Shares in B. Riley jumped more than 25% in New York trading after the company’s overdue quarterly filing gave investors their first formal look at the firm’s performance in more than half a year. The data included a net loss of more than $435 million for the three months ended June 30. The shares through Monday had plunged more than 80% in the past 12 months, trading for less than $4 each.
B. Riley and Kahn — a longstanding client and friend of Riley’s — teamed up in 2023 to take FRG private in a $2.8-billion deal. The transaction soon came under pressure when Kahn was tagged as an unindicted co-conspirator by authorities in the collapse of an unrelated hedge fund called Prophecy Asset Management, which led to a fraud conviction for one of the fund’s executives.
Kahn has said he didn’t do anything wrong, that he wasn’t aware of any fraud at Prophecy and that he was among those who lost money in the collapse. But federal investigations into his role have spilled over into his dealings with B. Riley and its chairman, who have said internal probes found they “had no involvement with, or knowledge of, any alleged misconduct concerning Mr. Kahn or any of his affiliates.”
FRG filed for Chapter 11 bankruptcy in November, a move that led to hundreds of millions of dollars of losses for B. Riley. The collapse made Riley “personally sick,” he said at the time.
One of the biggest financial problems to arise from the FRG deal was a loan that B. Riley made to Kahn for about $200 million, which was secured against FRG shares. With that company’s collapse into bankruptcy in November wiping out equity holders, the value of the remaining collateral for this debt has now dwindled to only about $2 million, the filing shows.
Griffin writes for Bloomberg.
Business
Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging
Starbucks will require people visiting its coffee shops to buy something in order to stay or to use its bathrooms, the company announced in a letter sent to store managers on Monday.
The new policy, outlined in a Code of Conduct, will be enacted later this month and applies to the company’s cafes, patios and bathrooms.
“Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” Jaci Anderson, a Starbucks spokeswoman, said in an emailed statement.
Ms. Anderson said that by outlining expectations for customers the company “can create a better environment for everyone.”
The Code of Conduct will be displayed in every store and prohibit behaviors including discrimination, harassment, smoking and panhandling.
People who violate the rules will be asked to leave the store, and employees may call law enforcement, the policy says.
Before implementation of the new policy begins on Jan. 27, store managers will be given 40 hours to prepare stores and workers, according to the company. There will also be training sessions for staff.
This training time will be used to prepare for other new practices, too, including asking customers if they want their drink to stay or to go and offering unlimited free refills of hot or iced coffee to customers who order a drink to stay.
The changes are part of an attempt by the company to prioritize customers and make the stores more inviting, Sara Trilling, the president of Starbucks North America, said in a letter to store managers.
“We know from customers that access to comfortable seating and a clean, safe environment is critical to the Starbucks experience they love,” she wrote. “We’ve also heard from you, our partners, that there is a need to reset expectations for how our spaces should be used, and who uses them.”
The changes come as the company responds to declining sales, falling stock prices and grumbling from activist investors. In August, the company appointed a new chief executive, Brian Niccol.
Mr. Niccol outlined changes the company needed to make in a video in October. “We will simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.
The new purchase requirement reverses a policy Starbucks instituted in 2018 that said people could use its cafes and bathrooms even if they had not bought something.
The earlier policy was introduced a month after two Black men were arrested in a Philadelphia Starbucks while waiting to meet another man for a business meeting.
Officials said that the men had asked to use the bathroom, but that an employee had refused the request because they had not purchased anything. An employee then called the police, and part of the ensuing encounter was recorded on video and viewed by millions of people online, prompting boycotts and protests.
In 2022, Howard Schultz, the Starbucks chief executive at the time, said that the company was reconsidering the open-bathroom policy.
Business
'TikTok refugees' unexpectedly turn to Chinese alternative as ban looms
TAIPEI, Taiwan — TikTok users concerned about a looming ban are finding solace in a strange place.
Days ahead of a Supreme Court decision that could determine whether the popular short-video app shuts down starting Sunday, a number of users appear to be turning to an app called RedNote — more commonly known to its majority-Chinese audience by its Chinese name, Xiaohongshu.
It’s a surprising choice since Xiaohongshu is Chinese-owned, and such ties are the reason U.S. lawmakers moved to ban TikTok in the U.S., citing privacy and national security concerns.
Also Xiaohongshu is dominated by Chinese language, and its content is subject to censorship by Chinese government officials, something alien to most U.S. users.
But by embracing a Chinese social media and lifestyle app similar to Instagram, some U.S. TikTok users say they are protesting what they believe is the unfair ban of the ubiquitous app.
“I think America is trying to bully China into selling to an American owner. A lot of us just don’t want to give in to them,” said Samantha Manassero, a 39-year-old nurse in L.A. who downloaded Xiaohongshu on Sunday night after watching content creators on TikTok pitch it as a comparable app. “I think some of it is literally just pettiness.”
Last year, Congress passed a bill that requires TikTok’s owner, Bytedance, to sell the app to a U.S.-approved owner or face a nationwide ban. As soon as Wednesday, the Supreme Court is expected to uphold the legality of the ban.
It was unclear whether Xiaohongshu, which was started in 2013, would become a viable alternative to TikTok or if the recent migration to the Chinese platform accounts for a significant share of TikTok’s 170 million U.S. users.
But a surge in new users made Xiaohongshu the top free download on Apple’s App Store this week. No. 2 on the charts was another social media app developed by Bytedance, Lemon8. It’s unclear whether either app will be subjected to the same U.S. government scrutiny as TikTok.
It is also difficult to determine exactly how many U.S. TikTok users have created accounts on Xiaohongshu or how many will stay on it. While many Xiaohongshu regulars have welcomed the influx of Americans identifying themselves as “TikTok refugees,” the app’s interface is largely in Chinese, making it difficult to navigate for non-native speakers.
Chinese apps are subject to stringent censorship on discussions that the Chinese government deems politically sensitive. These topics can range from illegal activities to LGBTQ+ rights to Winnie the Pooh, images of which have been used to mock Chinese President Xi Jinping.
The Chinese version of TikTok, called Douyin, has different content restrictions and is only available for mobile download in China. Bytedance has argued that TikTok, which is used by the rest of the world, is a separate entity from Douyin and not beholden to the Chinese Communist Party.
That did not stop President-elect Donald Trump from proposing a ban of TikTok in 2020, or President Biden from signing it into law in 2024.
The legality of such a ban has been questioned several times. Last month, in an about-face, Trump, who has 14.8 million followers on TikTok, filed a legal brief requesting to stay the ban so he can negotiate a deal once he takes office.
As TikTok faces an uncertain future, Xiaohongshu’s latest arrivals were eager to try out the new app despite its foreign nature.
Manassero, who posts videos about healthcare and power lifting to about 7,000 followers on TikTok, said she already has a much larger audience of 26,000 on Instagram. However, she was motivated to create an account on Xiaohongshu partly out of frustration at the U.S. government’s determination to outlaw TikTok.
“I don’t know what I’m doing, I don’t know what I’m reading, I’m just pressing buttons,” Manassero said in her first video post. The next morning, her account had received 5,000 views and 3,500 new followers. By Tuesday, the hashtag “Tiktok refugee” had received more than 90 million views and 2 million comments.
TikTokers sought each other out with introductions, follow requests and shared tips on how to navigate the app’s Chinese functions. On Monday, more than 190,000 viewers joined a live chat named “TikTok Refugees Club,” and held discussions in English about what a TikTok ban would mean and future plans for social media content. In the comments, users greeted new arrivals and lamented they could not understand each other.
“Maybe you can learn how to speak Chinese,” one user wrote in English.
“Where’s the translator?” another viewer asked in Chinese.
On Tuesday, the Wall Street Journal reported that Chinese officials had discussed the possibility of selling TikTok to a trusted non-Chinese party such as Elon Musk, who already owns social media platform X. However, analysts said that Bytedance is unlikely to agree to a sale of the underlying algorithm that powers the app, meaning the platform under a new owner could still look drastically different.
Manassero and other TikTokers expressed distaste at the prospect of migrating to U.S. tech platforms such as Instagram or X that could benefit from an influx of users if TikTok shuts down.
“We don’t want to turn around and make a bunch of billionaires even more rich,” she said. “I would honestly rather the app get shut down than be owned by Elon Musk.”
Though she is still trying to figure out how to use Xiaohongshu and message people back, Manassero said she would likely stay on the Chinese lifestyle app regardless of whether the TikTok ban goes through.
“The response has been so friendly and nice. It’s good energy,” she said. “This feels like the early TikTok days: a little more organic, so it’s fun.”
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