Potter's Field: State finds ministry owes former interns $120k in back pay

The Montana Department of Labor and Industries has reaffirmed the founders of the Whitefish-based Potter’s Field Ministries and MudMan Burgers owe approximately $120,000 in back pay to former ministry interns and restaurant employees.

A handful of individuals filed wage claims in 2019, a few months after a wave of allegations of spiritual, emotional and psychological abuse were brought against Potter’s Field founders Mike and Pam Rozell. The deluge prompted the ministry’s internship program and associated burger chain to fold, though two of the MudMan locations have since reopened as stand-alone for-profit businesses, despite the pending wage claims.

The state originally determined in May 2020 that the Rozells, who could not be reached for comment, owed more than $150,000 in back pay. But they requested the department reevaluate the claims and provided supplemental documentation to support their arguments in the cases, as did one former ministry member whose original wage claim was determined by the labor department to have no merit.

Upon completion of the second round of investigations, it was determined in mid-January that the Rozells owe $120,000, spread across five claims, including the one from the person who sought a reevaluation. The amount each individual is poised to receive ranges from about $10,000 to more than $40,000, with some of them set to collect amounts that are either higher or lower than the figure they originally had claimed.

Although the contents of each claim varies slightly, the crux of the majority of the complaints is centered around the Potter’s Field IGNITE 2.0 internship program, which required its voluntary participants to work at a MudMan location.

Most claimants stated they worked upward of 10 to 12 hours per day, were skirted their allotment of tips and earned far below minimum wage during their time at MudMan, which operated as doing-business-as entities under the Potter’s Field nonprofit umbrella prior to shutting down.

According to an overview of each redetermination, Potter’s Field legal counsel argued in most cases that the interns donated their time and energies to serve God as an act of sacrifice and worship, “in the same way he/she would worship through the giving of his/her tithes and offerings.” Potter’s Field also stated “the activities associated with the various endeavors were religious activities,” and that the individuals would start and end their day at whichever MudMan location they were at with prayer.

In addition, legal counsel also made the argument that the Potter’s Field nonprofit operated similarly to AmeriCorps, which they acknowledged is a federally funded volunteer organization. They proclaimed they were not compensating their participants, but simply providing housing and a stipend as a living allowance, similar to AmeriCorps.

Ultimately, the state department determined that, under the Fair Labor Standards Act, the Rozells owe 100% of actual minimum wages, overtime wages and penalties. If the wages and penalties are not provided in a timely manner, penalties increase handsomely. For example, in one case, a claimant is due $43,886.43, but that will increase to $52,454,49 if he does not receive his funds by a specified date.

Montana law allows the parties only one redetermination request. After a redetermination is issued, anyone who is dissatisfied with the results may appeal to mediation, and if mediation is unsuccessful, the matter can proceed to a contested case hearing before the Office of Administration.

Documents show the parties have until Feb. 1 to request an appeal or a redetermination. In this instance, the Rozells would file an appeal, while some of the claimants may file for redetermination if they are unsatisfied with the amount they are owed.

Reporter Kianna Gardner can be reached at 758-4407 or kgardner@dailyinterlake.com