
Perdue Farms will pay $4 million in restitution after child labor violations at a poultry processing facility in Accomac, Virginia, according to an agreement between the poultry company and the U.S. Department of Labor (DOL).
“There is no single enforcement action or lawsuit that will stop unlawful child labor, but strong enforcement coupled with companies willing to come to the table and take responsibility is vital. Perdue Farms has substantial influence in the poultry processing industry. 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,” said Solicitor of Labor Seema Nanda.
After an investigation, the DOL Wage and Hour Division determined that a staffing agency Perdue Farms contracted with, Staff Management Solutions and SMX LLC, employed children in hazardous occupations at the Accomac facility between 2020 and 2023.
These conditions, which included having minors debone and process chicken and other products using equipment such as electric knives and a heat-sealing press and permitting children to work after 7 p.m. during a regular school week, violated the Fair Labor Standard’s Act (FLSA) child labor and hazardous orders and hours provisions.
Perdue Farms also violated FLSA’s “hot goods” provision, which prevents employers from shipping goods produced in a facility with illegal child labor, the agency said.
As a part of the agreement, Perdue Farms will pay $4 million in restitution to the children and organizations advocating for child labor victims. The company will also pay $150,000 in a civil monetary penalty.
In an emailed statement to WATTPoultry, Andrea Staub, senior vice president of communications, Perdue Farms, said: “Perdue fully cooperated with the Department of Labor’s investigation and the investigation did not identify any current underage workers at Perdue Farms. 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 will establish a $2 million fund for the benefit of impacted minors. Perdue will also direct $2 million in contributions to charitable organizations in the Accomac community or whose purpose is to assist unaccompanied migrant children. Perdue has selected the Eastern Shore Community College and KIND as initial recipients of these 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.”
Staff Management Solutions and SMX LLC also entered into an agreement with the DOL. It will pay a $125,000 monetary penalty and be permanently enjoined from future FLSA child labor violations in the meat processing and packing industries.
Both companies agreed to enhanced compliance measures that include not hiring anyone under the age of 18 at certain locations, providing mandatory training on child labor for managers and employers, and establishing a designated tip line for employees to report compliance issues.
“The Department of Labor has and will use all available tools to address child labor exploitation. Government, industry, workers and advocates must come together to build solutions to the problem of exploitative child labor. The department’s work uncovering a systemic disregard for the safety of children resulted in meaningful commitments to stop and prevent child labor exploitation,” said Wage and Hour Administrator Jessica Looman.