In a legal showdown with the Department of Labor, Michigan-based Forge Industrial Staffing, Inc. is fighting back against what it says is an over-reaching investigation that could devastate its business. The company has filed a response with the United States District Court for the Western District of Michigan, countering the Department's attempts to enforce administrative subpoenas related to compliance with the Fair Labor Standards Act (FLSA).
Forge, a temporary staffing agency connecting workers with industrial manufacturers, denies DOL claims that the company is obstructing the investigation.
"In is 28-year history, Forge has never been accused of a child labor law violation,” the company wrote in its brief.
The dispute revolves around the Department's insistence on obtaining the identities of approximately 600 clients across Forge's 12 locations in Michigan and Indiana.
Forge told the court it is seeking a balanced approach that avoids inflicting severe damage on its operations. The company contends that, apart from the contested information, it has been cooperative, providing extensive employee details and facilitating interviews at its own expense.
Forge claims it has already lost clients and millions of dollars due to the Department's inquiry.
According to the company, “clients are already breaking off their relationships with Forge,” because of false impressions caused by a media report about the controversy.
In the filing, Forge claims that despite the DOL's thorough nine-month investigation, no violations have been lodged against the company.
The company’s problem began with a February 25, 2023, New York Times article that implicated one of Forge's clients, Hearthside Foods, in alleged child labor violations. Forge contends that the accusations against its own operations are solely based on statements from a former employee and remain unsubstantiated.
According to Forge, the Department's subpoena for its client list lacks specificity and fails to articulate any concrete suspicions or violations. The company contends that the Department already possesses the means to conduct interviews and determine joint-employer status without requiring client information.
Forge also claims the subpoena is excessively burdensome and an abuse of process. The company asserts that the Department initially was willing to proceed without client information, but reversed its stance without providing a clear explanation.
Forge is urging the court to deny the petition outright or impose a protective order limiting the scope and use of the requested information.
"Forge has already suffered substantial harm, and it is desperate to avoid further, fatal harm to its operations,” Forge lawyers wrote.
According to the company’s legal filing, "Forge's overall revenue with its existing clients is down approximately 40%.” The company has been forced to lay off a portion of its workforce.
