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Staffing buyer to pay $4M over child labor allegations

Staffing buyer to pay $4M over child labor allegations

Craig Johnson
| January 15, 2025

Main article

Staffing buyer Perdue Farms agreed to pay $4 million in restitution over child labor violations, the US Department of Labor reported Jan. 15. Perdue said it disagreed with the department’s findings. The company’s staffing provider reached a separate agreement with the department.

“Perdue Farms has substantial influence in the poultry processing industry,” Solicitor of Labor Seema Nanda said. “By entering into this agreement, Perdue Farms is taking meaningful action to root out child labor not only at its facilities but to recognize its corporate responsibility to combat child labor more broadly.”

The announcement comes after an investigation found that Perdue and staffing provider Staff Management | SMX jointly employed youths in hazardous occupations at a facility in Accomac, Virginia, according to the department. The jobs included deboning and processing chicken and other products using electric knives and a heat-sealing press, it said. The practices allegedly dated back as far as 2020.

In response to the department’s announcement, Staff Management | SMX noted that each worker had passed the government’s E-Verify system and affirmed they were more than 18 years old.

“Any minor found to be working under the legal age is one too many. Staff Management | SMX remains steadfastly committed to upholding our strong history of industry-leading compliance practices,” a spokesperson for Staff Management | SMX said in a statement to SIA.

“Every employee we place, including at this facility, passed the E-Verify federal government system confirming their legal age to work,” the spokesperson said. “Each employee also repeatedly affirmed they were over 18 years of age and presented supporting government documents. We took all appropriate actions possible under the law and deny any liability in this instance.

“We are focused on moving forward and strongly support efforts such as enhanced E-Verify legislation that will provide organizations like ours with the tools necessary to better detect fraudulent documents and those seeking to subvert the law. We also continue to take steps to significantly enhance our processes, training, and procedures to detect and prevent underage labor.”

In addition, the department said Perdue Farms violated the Fair Labor Standards Act’s “hot goods” provision, which prevents employers from shipping goods produced in an establishment that engaged child labor illegally.

“Perdue fully cooperated with the Department of Labor’s investigation and the investigation did not identify any current underage workers at Perdue Farms,” Andrea Staub, a Perdue spokesperson, said in a statement to SIA. “While we strongly disagreed with DOL’s findings of liability, and there are no admissions in the agreement to the contrary, Perdue recognized that a prolonged dispute with the Department of Labor did nothing to address the child labor crisis.”

Perdue said $2 million will go toward the benefit of impacted minors. The other $2 million will be made in contributions to charitable organizations in the Accomac community. The company has selected the Eastern Shore Community College and Kids in Need Defense as the recipients of the donations.

“We are dedicated to advancing work that helps stem the child labor crisis in America by investing in our communities, education systems and essential social support networks,” Staub said.

She also said Perdue does not condone the use of underage youths.

“Any instance of underaged workers in our facilities was without authorization and is unacceptable,” Staub said. “Underage labor has no place in our business and our industry.”

 Perdue also agreed to pay a $150,000 civil penalty.

In a separate consent judgement, Staff Management agreed to pay a $125,000 civil penalty.

Both firms will implement compliance measures under the deal that include mandatory training on child labor for managers and employees and setting up a designated tip line for employees to report compliance issues.

Staff Management has been contacted for comment.

The department noted that it concluded 736 cases of child labor violations in 2024 that involved 4,030 children nationwide. It assessed employers more than $15.1 million in civil money penalties, an 89% increase from the previous year.