US Department of Labor reaches agreement with Perdue Farms, secures judgment against staffing agency to address child labor violations
Recently, Perdue Farms (PF) announced its intent to close its production facility in Monterey on March 28, a move that will cost the community over 400 jobs. According to PF, the Monterey closure will not impact Perdue’s relationships with farmers, or the quality of service and that it “is working closely with affected customers to ensure smooth transitions.”
But, it will impact those employees who will lose their jobs. Putnam County Mayor Randy Porter says the county will deploy the “Workforce Strike Team” to help the dislocated workers find new jobs.
“Please help us by posting any job openings your business might have on the Chamber’s website at https://business.cookevillechamber.com/jobs,” said Porter. “We live in a very strong community which I have full faith will come together and show our strength by helping our fellow citizens with job opportunities and resources.”
The Monterey closure announcement comes on the heels of a recent agreement between the poultry production king and the U.S. Department of Labor (DOL) and a separate agreement with temporary staffing agency Management Solutions LLC and SMX, LLC (collectively referred to as “SMX”) that will “address child labor violations found in an investigation of Perdue’s poultry processing facility in Accomac, Virginia,” according to a release by the USDL.
PF will pay $4M in restitution and “implement enhanced compliance measures.” Investigators with DOL’s Wage and Hour Division found that PF contracted with SMX to staff children in hazardous “production-level” jobs at the Accomac facility.
Duties included:
- Deboning chicken
- Processing chicken
- Using equipment such as electric knives and heat sealing presses
Purdue Farms clarified to the UCBJ that the two incidents are in no way connected.
Read a statement from the company below:
Statement from Perdue Farms on recent labor allegations and agreement with U.S. Department of Labor
Following an investigation by the U.S. Department of Labor’s Wage and Hour Division into alleged underage workers hired by a third-party contractor and placed at Perdue’s Accomac, Virginia facility between 2020 and 2023, Perdue Farms has entered into an agreement with the Department of Labor to support the greater Accomac community and unaccompanied migrant children.
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 $2M fund for the benefit of impacted minors. Perdue will also direct $2M 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.
Eastern Shore Community College President Jim Shaeffer said, “Perdue Farms has been a longtime, over 25 years and deeply committed partner of our college. The company’s support and engagement has had a direct impact on our student's lives. Perdue’s most recent commitment is simply taking our partnership to the next level, and we look forward to the benefits it will have on our community, our mission, and our students.”
Kids in Need of Defense (KIND) President Wendy Young said, “Preventing child labor exploitation requires creative, well-resourced coordination among a broad spectrum of stakeholders, including industry leaders like Perdue. KIND is excited to work alongside these partners to implement sustainable solutions to address the circumstances and practices that contribute to workplace dangers for children, including unaccompanied children seeking safety in the United States. We are pleased that our monthslong conversation with Perdue has resulted in this partnership, which will protect the rights and well-being of children in the workplace. We look forward to establishing a successful and long-lasting relationship with Perdue and its leadership.”
Any instance of underaged workers in our facilities was without authorization and is unacceptable. Underage labor has no place in our business and our industry.
The Investigation
“The employers also permitted children to work after 7 p.m. during a regular school week. These conditions violate the Fair Labor Standards Act’s child labor hazardous orders and hours provisions,” according to the DOL.
The investigation determined PF violated the FLSA’s “hot goods” provision. The provision prevents employers from shipping goods produced “in, or about an establishment where there was illegal child labor.”
“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.
The settlement, in which PF will pay the children and organizations advocating for child labor victims, $4M in restitution and will look to prioritize additional work to prevent child labor exploitation. The company also agreed to pay a $150,000 civil monetary penalty.
According to the release, in a separate consent judgment entered in the U.S. District Court for the Eastern District of Virginia in Norfolk, Staff Management Solutions agreed to pay a $125,000 civil money penalty and to be permanently enjoined from future FLSA child labor violations in meat processing and packing industries.
“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.
Enhanced compliance measures agreed to by perdue and SMX include:
- Not hiring anyone under the age of 18 in certain locations
- Providing mandatory training on child labor for managers and employees
- Disciplining, up to termination, anyone who does not comply with federal child labor laws
- Not retaliating in any way against any of its employees, including family members or guardians of minor children, because an employee has filed any complaint or instituted or caused to be instituted any proceeding under or related to the FLSA, or has testified or is about to testify in any such proceeding, or has served or is about to serve on an industry committee
- Establishing a designated tip line for employees to report compliance issues
- Increasing reporting regarding compliance
Photo courtesy of Purdue Farms.
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