Poultry Farmers Sue Tyson Over Pay-For-Performance Scheme

Law360, San Francisco (June 2, 2015, 5:17 PM EDT) -- Tyson Chicken Inc. allegedly pays its chicken growers through an arbitrary “tournament” system that pits farmers against one another based on criteria Tyson keeps secret, according to a suit removed to Kentucky federal court Monday, shortly after “Last Week Tonight” host John Oliver highlighted the practice.

The plaintiffs say Tyson subjects its chicken farmers to a ranking system that determines how much they will be paid. But the ranking system can be “arbitrarily and capriciously” manipulated by Tyson, pitting growers against one another in a scheme where nobody knows how to come out on top, according to the suit.

“Last Week...

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