Child Labor Laws: Where Businesses Go Wrong

Every year, we hear of reputable companies making the news for violating child labor laws. Although federal youth rules seem to be fairly straight forward, many managers nationwide keep missing the mark.   

This begs the question: what are the most common child labor law infractions, and how can your managers avoid being out of compliance?

Most Common Child Labor Law Infractions 

In 2023, the Wage and Hour Division found a 14% increase in illegal child employment from the previous year, where 5,800 children were employed in violation of the law. A quick review of several of those child labor law violators shows three common themes:  

1. Teens worked later and/or longer than allowed 
2. Teens worked hazardous job duties 
3. Teens were not paid overtime wages 

Before highlighting where specific companies went wrong to help you avoid the same fate, be sure your managers are familiar with the time and hours restrictions for employees under the age of 16.

How Many Hours is a Minor Allowed to Work? 

The Fair Labor Standards Act (FLSA) restricts youth under 16 years old to the following work hours and times: 

When school is not in session (June 1 through Labor Day):  

• No more than 40 hours in a week 
• No more than 8 hours a day 
• Only work between the hours of 7am – 9pm 

When school is in session:  

• No more than 18 hours a week 
• No more than 3 hours a day 
• Only work between the hours of 7am – 7pm between Labor Day and June 1 (school year) 

Here are several cases from 2023 where companies went wrong. 

Birmingham Indoor Adventure Park Child Labor Law Violations: Teens Worked Later/Longer than Allowed 

In Alabama, an indoor adventure park company allowed youth workers under the age of 16 to work after 7 p.m. on a school night and after 9 p.m. in the summer. They were also allowed to work over 3 hours on school days and over 18 hours a week during the school week.

The company paid $28,000 in penalties for violating child labor laws.

Sodalicious Child Labor Law Violations: Teens Worked Later/Longer than Allowed 

In Utah, four different locations for Sodalicious allowed 14- and 15-year-old employees to work more than 3 hours on a school day and past 7 p.m. during the school year. These youth employees also worked later than 9 p.m. during the summer months.

The company was fined $13,946.

Dairy Queen Child Labor Law Violations: Teens Worked Later/Longer than Allowed 

In New Jersey, four Dairy Queen locations employed 15-year-old minors who were allowed to work more than 3 hours in a day and more than 18 hours in a week during the school year. Some of these youth employees worked as late as 10 p.m. when school was in session, which is 3 hours later than the 7 p.m. cutoff.

Investigators also discovered one employee was not paid at least minimum wage and 14 workers were not paid time-and-a-half overtime premium for hours worked over 40 in a week. Beyond back wages owed, the company had to pay $14,006 in penalties.

McDonald’s (Pennsylvania) Child Labor Law Violations: Teens Worked Later/Longer than Allowed

In the greater Pittsburgh area, five McDonald’s franchise locations had 34 youth employees who worked later and longer than permitted.

The franchises were fined $26,894.

The Exclusive Poultry Inc Child Labor Law Violations: Multiple Youth Rule Violations

The Exclusive Poultry Inc and related companies of Tony Bran’s in Southern California had several infractions discovered by the DOL:

1. Teens Worked Hazardous Job Duties 

Children as young as 14 years old were employed to debone poultry using sharp knives and operate power-driven lifts to move pallets. 

2. Teens Worked Later and Longer Than Allowed 

Youth employees under 16 worked more hours than permitted per the FLSA. 

3. Employer Retaliated Against Teen Workers  

Employees who worked with investigators were fired or had their wages cut. 

4. Employer Failed to Pay Overtime Wages to Teen Workers 

Employees were paid piece rate or a straight time hourly rate with no overtime, despite working 50-60 hours some weeks. 

5. Employer Failed to Maintain Payroll Records 

The company intentionally omitted workers from payroll records. 

Amongst other violations/penalties, The Exclusive Poultry Inc had to pay $201,104 in penalties. 

Win.IT America Inc Child Labor Law Violations: Teens Worked Hazardous Job Duties and Worked Later/Longer Than Allowed 

In Kentucky, two children ages 11 and 13 worked for months at a Win.IT America Inc distribution center. While this alone is a violation of federal regulations to employ workers under age 14 for non-agricultural occupations, one child operated a forklift (hazardous job for anyone under 18) while another child picked orders in the warehouse, a prohibited task for workers under 16. The children also worked more hours than a youth worker would legally be allowed.  

The company was fined $30,276 and was required to hire a third-party consultant to provide semi-annual compliance training for all managers over the next three years. 

Monogram Meats Snacks LLC Child Labor Law Violations: Teens Worked Hazardous Job Duties 

In Minnesota, Monogram Meats Snacks LLC, a national food manufacturer, allowed a total of 11 children (five 17-yr-olds, four 16-year-olds, and two 15-year-olds) to work at its meatpacking and food processing facility, which is a violation of federal child labor laws. Nine of those youth workers also operated hazardous machinery.

The company paid $140,164 in penalties.

Standard Restaurant Supply’s Child Labor Law Violations: Teens Worked More Hours per Workweek and Later than Allowed and Did Not Maintain Records

In Utah, Standard Restaurant Supply employed 22 youth workers ages 14-15 years old who were allowed to work as many as 46 hours per week, sometimes beginning work after midnight. The employer also neglected to keep accurate records for the FLSA’s employee records retention provision. 

The company was fined $16,595. 

McDonald’s (Louisiana) Child Labor Law Violations: Teens Worked Longer and Later Than Allowed and Operated Hazardous Equipment 

In Louisiana, 12 McDonald’s restaurants employed 72 youth workers ages 14-15 years old who were allowed to work longer and later than allowed. In addition, three children operated manual deep fryers, which is prohibited for anyone under age 16.

The company paid $56,106 in penalties.

McDonald’s (Texas) Child Labor Law Violations: Teens Worked Longer and Later Than Allowed and Operated Hazardous Equipment  

In Texas, four McDonald’s restaurants employed 10 youth workers ages 14-15 years old who were allowed to work longer and later than permitted. Seven of these workers operated a manual deep fryer and oven, and two of the seven also used a trash compactor – all of which are considered hazardous for youth workers.

The company was fined $21,466.

Mayan Mexican Restaurants Child Labor Law Violations: Teens Worked Later/Longer than Allowed and Failed to Pay Overtime

In Washington, three Mayan Mexican restaurants allowed one youth employee to work more hours than permitted on school days and to work later than 7p.m. during the school year. Investigators also discovered the company failed to combine employees’ hours worked at multiple locations to accurately calculate and pay overtime wages. 

The owner had to pay $52,923 in unpaid overtime wages, $52,923 in damages, and $6,440 in penalties. 

Roosters Wings Child Labor Law Violations: Teens Worked Later/Longer than Allowed and Failed to Pay Overtime

In Kentucky, 14- and 15-year-old youth employees at Roosters Wings franchises worked past 7 p.m. during the school year and past 9 p.m. during the summer. Youth workers also worked over 18 hours during a school week and over 8 hours a day during the summer.

Roosters Wings had multiple locations where employees worked at more than one site, sometimes within the same workweek. The company failed to combine hours to pay required time-and-a-half premium for hours worked over 40 in a week.

In all, the company paid $43,505 in penalties and $182,125 in back wages and liquidated damages owed. 

Employer Takeaways for Child Labor Law Compliance

Know the Time Limits 

For companies who hire workers under the age of 16, ensure your managers know the hours and time limits for 14–15-year-olds. In most cases, youth who are homeschooled are under the same time restrictions as those who attend public school. Some states have more restrictions than the federal statutes; see the breakdown of state child labor laws.

Do Not Allow Hazardous Tasks 

If you hire workers under the age of 18, be sure they do not work in a hazardous occupation or operate hazardous equipment. Even parents who hire their own children are subject to these rules. (See the list of hazardous jobs here.) 

Add All Time Worked at All Locations to Determine Overtime 

When you have multiple worksite locations and require employees to clock in separately to attribute wages to a specific worksite, be sure you add all their time for each location to determine overtime wages. In cases where employees work for different companies with common ownership, workers may still be owed overtime wages if the businesses are considered joint employers.

If you have questions about your specific scenario, please contact your certified HR expert. Not a current Stratus HR client? Book a free consultation and our team will contact you shortly.