Neil LLC, the owner and operator of six Sonic Drive-In locations in Nevada, has paid a steep price for violating federal child labor regulations. The company and its owners, SDI, were found to have violated over 170 child labor provisions of the Fair Labor Standards Act at their locations in the Reno area, according to an investigation by the Department of Labor’s Wage and Hour Division (WHD).
Details of the Investigation into SDI’s Child Labor Violations
The investigation found that SDI had allowed 14- and 15-year-olds to work more hours and at times not permitted by federal child labor regulations. At one location, SDI even hired a 13-year-old, who is under the legal age for employment in restaurants and other non-agricultural jobs, the DOL added. As a result, the company paid $71,182 in civil penalties for these violations.
Hiring a 13-year-old violates the legal age restriction for non-agricultural jobs
The DOL’s investigation into SDI’s child labor violations found that the company had hired a 13-year-old, which is below the legal age for employment in restaurants and other non-agricultural jobs. This egregious violation of federal child labor regulations demonstrates the need for employers to take extra care when hiring young workers and ensure that they are complying with all relevant laws and regulations.
Recovery of overtime back wages and liquidated damages for young workers
In addition to the civil penalties paid by SDI, the DOL also recovered $274 in overtime back wages and liquidated damages for two young workers. This recovery highlights the importance of ensuring that young workers are properly compensated and protected from exploitation in the workplace.
Importance of Training Managers on FLSA’s Child Labor Laws to Protect Teen Workers and Avoid Liability
This case serves as a reminder to employers gearing up for summer hiring to ensure that their managers are trained on the FLSA’s child labor laws. Proper training is a “best practice” recommended by the DOL for protecting teen workers from injury and avoiding liability under federal law. By training their managers on these important regulations, employers can ensure that they provide a safe and fair working environment for all employees, particularly young workers.
There is an increasing concern for child labor violations according to DOL statistics
Child labor violations are an increasingly major concern for the federal government. According to DOL statistics, since 2018, child labor violations have increased by 69%. This alarming trend underscores the need for employers to take a proactive approach to compliance with federal child labor regulations.
Assessment of employer penalties and child labor investigations in eight southern states
According to the DOL statement released in April, in eight Southern states, namely Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee, the WHD assessed employers more than $2.8 million in penalties and conducted over 500 child labor investigations affecting almost 2,900 minors from fiscal years 2020 through 2022. These figures demonstrate the severity of child labor violations and underscore the importance of persistent monitoring and enforcement by both federal and state authorities.
Introduction of the Justice for Exploited Children Act to Raise Maximum Fine for Violating Child Labor Standards
In March, Congresswoman Hillary Scholten (D-Mich.) and Nancy Mace (R-S.C.) introduced the Justice for Exploited Children Act (H.R. 2388) in response to growing concern about child labor violations. The bill would raise the maximum fine for violating child labor standards to $132,270 from the current maximum of $15,138 for offenses that don’t result in serious injury or death.
Details of the proposed bill’s changes to fines for child labor violations
If passed, the Justice for Exploited Children Act would increase the fines for violating child labor standards to a level that more accurately reflects the seriousness of these offenses. By raising the maximum fine to $132,270, the bill would provide a powerful deterrent against the exploitation of young workers and send a clear message that child labor violations will not be tolerated.
DOL recovers civil penalties from Packer Sanitation Services for illegal employment of minors in meatpacking plants
In April, Senators Cory Booker, D-N.J., and Peter Welch, D-Vt., introduced a bill in response to another high-profile case of child labor violations. The DOL had recovered $1.5 million in civil penalties from Packer Sanitation Services for allegedly illegally employing more than 100 minors, some as young as 13, in meatpacking plants in eight states.
The cases of SDI and Packer Sanitation Services illustrate the severity and prevalence of child labor violations in the United States. Employers must take a proactive approach to ensure compliance with federal child labor regulations, while federal and state authorities must continue to enforce these regulations. The proposed legislation to raise fines for violating child labor standards is a positive step towards protecting young workers and deterring exploitation in the workplace. Ultimately, it is essential that all stakeholders work together to protect America’s most vulnerable workers – our youth.