The Labor Department announced this week that two major meatpacking companies will each pay $4 million as a result of federal investigations that uncovered their illegal employment of numerous children through staffing agencies.
Perdue Farms, a meat processing company based in Salisbury, Maryland, was found to have hired children in hazardous occupations at a poultry processing plant in Accomac, Virginia since 2020. The jobs involved tasks such as using electric knives and a heat-sealing press. The children were recruited through Staff Management Solutions, which was fined $125,000 for its involvement in the child labor violations.
Similarly, JBS USA, headquartered in Greeley, Colorado, reached an agreement following an investigation in 2022 that revealed its cleaning contractor had employed multiple children at its facilities. Packers Sanitation Services, located in Kieler, Wisconsin, was fined $1.5 million in connection with this case.
Jessica Looman, the wage and hour administrator for the Labor Department, emphasized the need for collaboration between government, industry, workers, and advocates to address exploitative child labor. She stated that the department’s efforts in uncovering a pattern of neglect for children’s safety led to concrete commitments to halt and prevent child labor exploitation.
These $4 million settlements represent the largest among several agreements announced by the Labor Department this week to address child labor violations in various industries. For instance, a cleaning contractor, QSI LLC, was fined $400,000 for employing children in overnight sanitation shifts at meatpacking plants across eight states. In another case in Farmington Hills, Michigan, a branch of Little Caesars paid $26,000 for assigning minors to operate dangerous equipment and work late hours.
The Labor Department revealed that Perdue Farms had unlawfully employed children through Staff Management Solutions LLC and SMX LLC at its facility in Accomac, Virginia, where dangerous equipment was used to process chicken and other products. The minors were also made to work beyond permissible hours during weekdays, violating the Fair Labor Standards Act regulations for young workers.
In response to these findings, Perdue Farms will pay $4 million in restitution to impacted children, child labor advocacy organizations, and to support initiatives aimed at preventing future exploitation. The company will also pay $150,000 in civil penalties as part of the agreement.
Perdue Farms and JBS USA have agreed to pay a total of $4 million for child labor violations following separate investigations by the Department of Labor. In the case of Perdue Farms, the company cooperated fully with the investigation, which found no current underage workers at their facilities. Despite their disagreement with the findings of liability, Perdue Farms recognized the importance of resolving the issue promptly and effectively.
The agreement with JBS USA comes on the heels of a 2022 Labor Department probe that discovered the company’s cleaning contractor had employed 102 children between the ages of 13 and 17 across multiple meat processing facilities in eight states. Some of these underage employees were reported to have worked overnight shifts and at least three had sustained injuries while on the job.
Nikki Richardson, a spokesperson for JBS USA, made it clear that the company does not admit liability as part of the agreement with the Labor Department. She highlighted that JBS USA has since ceased working with third-party sanitation providers in an effort to uphold high standards in safety, hiring practices, and compliance. The $4 million fund resulting from the agreement will be overseen by Kids in Need of Defense, a non-governmental organization dedicated to supporting unaccompanied and separated children.
The recent settlements reached with Perdue Farms and JBS USA mark the culmination of the Biden administration’s intensified efforts to combat child labor since 2023, when a dedicated task force was established by the Labor Department to address the concerning rise in cases of child labor. Data from the Labor Department indicates a troubling increase in child labor violations in the United States, with over 730 cases uncovered in fiscal year 2024 alone. These violations led to the discovery of 4,030 children being illegally employed, representing a 31% surge since 2019. The agency is currently actively investigating approximately 1,000 cases.
The agreements with Perdue Farms and JBS USA underscore the seriousness of child labor violations and the importance of holding companies accountable for ensuring the safety and well-being of all workers, particularly minors. By allocating funds towards organizations that support vulnerable youth, both companies are taking steps to address the harmful impacts of child labor and uphold a zero-tolerance policy towards such practices.
It is crucial for companies to prioritize compliance with labor laws and regulations to prevent the exploitation of minors in the workforce. The joint efforts of government agencies, non-governmental organizations, and responsible businesses are essential in safeguarding the rights of children and promoting ethical labor practices across industries.
