US Department of Labor reaches agreement with Perdue Farms, secures judgment against staffing agency to address child labor violations

PHILADELPHIA ‒ The U.S. Department of Labor has entered into an agreement with Perdue Farms Inc. and secured a separate agreement with temporary staffing agency Staff Management Solutions LLC and SMX LLC, collectively referred to as "SMX," to address child labor violations found in an investigation of Perdue's poultry processing facility in Accomac, Virginia.

Investigators with the department's Wage and Hour Division found that, as far back as 2020, Perdue Farms contracted with SMX to staff production-level jobs, and that they jointly employed children in hazardous occupations at the Accomac facility to debone and process chicken and other products using equipment such as electric knives and a heat-sealing press. 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.

The division's investigation also determined Perdue Farms violated the FLSA's "hot goods" provision, which 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 agreement calls for Perdue Farms to pay $4 million in restitution to the children, organizations advocating for child labor victims, and to support additional work to prevent child labor exploitation. The company also agreed to pay a $150,000 civil monetary penalty.

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.

Perdue and SMX also agreed to implement enhanced compliance measures that include the following:

• 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.

Under the Fair Labor Standards Act, an employee may have - in addition to their employer - one or more joint employers. Joint employment applies when an employee is employed by two or more employers such that the employers are responsible, both individually and jointly, for compliance with federal labor laws.

Headquartered in Salisbury, Maryland, Perdue Farms Inc. is a food and agricultural company operating as two divisions, Perdue Foods and Perdue AgriBusiness. Staff Management Solutions is a subsidiary of TrueBlue, one of the largest U.S. staffing firms, based in Seattle, Washington.

In fiscal year 2024, the department concluded 736 cases with child labor violations involving 4,030 children nationwide. The department addressed those violations by assessing employers more than $15.1 million in civil money penalties, an 89 percent increase from the previous year. The department continues to prioritize protecting children and currently has over 1,000 open child labor investigations.

Workers and employers can call the division confidentially with questions and the division can speak with callers in more than 200 languages at its toll-free helpline, 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including child labor regulations on dangerous jobs that are prohibited for workers under age 18.