DELMARVA — Perdue Farms Inc. has agreed to pay $4 million in restitution and implement strict compliance measures after a U.S. Department of Labor investigation uncovered child labor violations at its poultry processing plant in Accomac, Virginia.
The investigation revealed that Perdue Farms, working with the staffing agency SMX LLC, employed children in hazardous roles, such as using electric knives and heat-sealing equipment to process poultry. Some of the children were also found to be working past 7 p.m. on school nights, violating provisions of the Fair Labor Standards Act said DOL.
Perdue Farms was also found to have violated the FLSA’s “hot goods” provision, which DOL said prohibits the shipment of goods produced in facilities using illegal child labor.
Restitution and Penalties
Under the terms of the agreement, Perdue Farms will:
- Pay $4 million in restitution to the children impacted, to advocacy organizations for child labor victims and for prevention initiatives
- Pay a $150,000 civil monetary penalty
SMX LLC, a subsidiary of TrueBlue, has agreed to a separate consent judgment requiring it to:
- Pay a $125,000 civil monetary penalty
- Be permanently barred from future child labor violations in the meat processing industry
Compliance Measures
To prevent future violations, Perdue and SMX have agreed to a series of enhanced compliance measures, including:
- Prohibiting the hiring of anyone under 18-years-old for certain positions
- Providing mandatory child labor training for managers and employees
- Disciplining or terminating individuals who fail to comply with federal child labor laws
- Establishing a tip line for employees to report compliance issues
- Increasing compliance reporting and monitoring
“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.
Child Labor Violations on the Rise
The U.S. Department of Labor reported a sharp rise in child labor violations in recent years. In fiscal year 2024, the department resolved 736 cases involving more than 4,000 children and issued $15.1 million in penalties — an 89 percent increase over the previous year.
“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," said Wage and Hour Administrator Jessica Looman. "The department’s work uncovering a systemic disregard for the safety of children resulted in meaningful commitments to stop and prevent child labor exploitation."
For more information on labor laws and child labor protections, the Department of Labor encourages workers and employers to call its confidential helpline at 866-4US-WAGE (487-9243).
Meanwhile, a week ago, the Georgetown Perdue plant triggered a hazmat response when chemicals were mistakenly mixed together by a supplier. The accident prompted those within a half-mile radius to shelter in place. DNREC continues to investigate that incident.