09/29Cross-Agency Collaboration Helps Recover $17K in Unpaid Wages for 23 Wisconsin Minors

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Cross-Agency Collaboration Helps Recover $17K in Unpaid Wages for 23 Wisconsin Minors

MADISON - The Wisconsin Department of Workforce Development (DWD) and the Wisconsin Department of Justice (DOJ) this week announced the recovery of $17,000 in penalty wages on behalf of 23 minor workers for child labor violations stemming from a 2024 audit determination, as well as an order against the employer to pay $59,754 in additional civil forfeitures and surcharges.

DWD's Equal Rights Division investigated multiple violations of Wisconsin's employment of minors law committed by Iron Arch, a McDonald's franchisee operating in Wisconsin, following a complaint from an employee of the franchiser. The violations uncovered included minors working outside permitted hours of the day, exceeding the maximum daily hours permitted, and minors working shifts of six or more hours without a 30-minute break.

"It's always a good day when we're able to right a wrong committed against Wisconsin workers - especially against our youngest workers who are more vulnerable to exploitation. Child labor laws provide important protections to ensure that kids who choose to work can stay safe in the workplace without sacrificing their schoolwork or time with family and friends," DWD Secretary Amy Pechacek said. "This wage recovery highlights the importance of cross-agency collaboration and the value of a no-wrong-door state services framework. Our partnerships with agencies like DOJ and DOR help us build a more robust system of protection for Wisconsin workers."

"Companies must follow the laws that are in place to protect minors who are working," said AG Kaul. "I'm appreciative of this coordination between state agencies to ensure that the impacted workers will receive the amounts owed to them."

In total, DWD determined that $17,000 in unpaid wages were owed to 23 minor employees of Iron Arch. DWD referred the case to DOJ) after Iron Arch failed to repay these wages. DOJ secured a judgement against the company, ultimately making it possible for the Wisconsin Department of Revenue (DOR) to recover the funds through a tax intercept. The judgment also included an additional $59,754 for civil forfeiture and surcharges. DWD will now begin to issue recovered wages to the impacted workers.

DOR recovered the penalty wages via the State Debt Collection Initiative (SDC). The SDC program attempts to resolve debts by working with customers to set up a payment plan. If the customer is not responsive, the debt is collected using tools such as wage garnishments, bank levies, unclaimed property setoffs, and refund offset. The SDC Initiative has collected over $77.5 Million in FY 2025 and over $74 Million in FY 2026 on behalf of SDC agency partners, making a real difference to communities and individuals throughout Wisconsin.

More information about how to file a claim with the Equal Rights Division can be found at https://dwd.wisconsin.gov/er/complaints/

ABOUT DWD

Wisconsin's Department of Workforce Development efficiently delivers effective and inclusive services to meet Wisconsin's diverse workforce needs now and for the future. The department advocates for and invests in the protection and economic advancement of all Wisconsin workers, employers, and job seekers through six divisions - Employment and Training, Vocational Rehabilitation, Unemployment Insurance, Equal Rights, Worker's Compensation, and Administrative Services. To keep up with DWD announcements and information, sign up for news releases and follow us on LinkedIn, Facebook, Instagram, X, and YouTube.