The Los Angeles federal court has approved a settlement  requiring several Southern California poultry processors to pay $221,919 in penalties and $4.8 million in back pay to 486 poultry workers.  $1 million of the latter is profits earned off illegal child labor, as is $171,919 of the penalties.

The court also barred shipment of any such “contraband” poultry to customers including Foster Farms, pet food companies, and hotels in Nevada.

A U.S. Department of Labor investigation found children as young as 14 deboning poultry with sharp knives in violation of federal law, as well as unpaid overtime, falsification of records, threats to workers about talking to investigators, and supervisor retaliation.  The processors also initially refused to respond to subpoenas or otherwise cooperate with the investigation.

Solicitor of Labor Seema Nanda said: “When we find an employer has put a child’s well-being at risk in return for profit, the Department of Labor will use all available tools to seek to remove children from harm’s way and prevent future violations, including stopping the shipment or sale of goods located where children are being exploited. The court’s disgorgement remedy recognizes that no employer should profit off the shipment of contraband and the backs of children.”

Take-Aways:  

Employers must comply with all applicable state and federal employment laws, including those covering minors.  They should engage skilled counsel and cooperate with investigations to avoid enhanced penalties.  Large volume retail recipients of food products should also ensure they are buying from reputable suppliers that comply with labor laws, including those related to children.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Team Building Insurance: Workplace Policy Handbook & Forms for 2024 (May 22, 2024)
• Workplace Peace of Mind: “And How His Audit Stands, Who Knows, Save Heaven” (March 29, 2024)
• Protect the Kids: McDonald’s Franchisees Cited for Child Labor Violations (August 11, 2023)

Helena Kobrin
May 31, 2024