The U.S. Department of Labor's (DOL) year-long investigation into Forge Industrial Staffing, originally prompted by allegations made in a New York Times (NYT) article related to child labor, has yet to find evidence of violations at the company. Forge has cooperated with the department's investigation, except to provide the confidential client information - an action Forge says would deal significant damage to the company regardless of the inquiry's outcome.
"The Department of Labor has now spent a year investigating this case, with absolutely no evidence of wrongdoing," according to the Forge Industrial Staffing website. "Forge continues to take this matter extremely seriously, and has fully complied with all reasonable information requests, but DOL continues to pursue confidential client information that can only result in further damage to a long-term Grand Rapids business like Forge. We're hopeful that this matter can be amicably resolved without further damage to our business, but we will continue to protect our privacy and that of our customers from government overreach."
The DOL's investigation began following a February 2023 NYT 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 who was found to have provided fraudulent information to gain employment with Forge in 2011.
The DOL wants Forge to disclose the identities of its 600+ clients in Michigan and Indiana so that it can conduct on-site interviews with workers. According to a recent MLive article, the DOL stated that by opposing the department’s demand for client information, Forge "seeks to control, delay, and hinder" the investigation.
However, court documents reveal that Forge tried to provide alternative methods for the DOL to acquire the requested data. The company suggested conducting employee interviews at its own offices and at its own expense, which was initially accepted by the the DOL. However, without justification, the department later changed its position.
Legal filings detail Forge's measures to comply with child labor regulations through strict verification processes and internal audits. They also highlight the company's cooperation in state and federal investigations, including providing documentation and conducting employee interviews. The investigation has cost Forge at least 17 clients and led to a 40% decline in revenue resulting in layoffs at this Grand Rapids-based company.
Forge Industrial Staffing was established in 1995 with a mission to connect businesses with temporary and contract workers. According to its website, it operates in Michigan and Indiana and has never faced a formal claim of child labor law violations in its 28-year history.
Julie Su is currently serving as acting Secretary of Labor; her nomination has not been confirmed. Bloomberg Law reports that criticism centers around her enforcement actions while running California’s labor agency. Some business leaders claim her actions are overly pro-labor and potentially detrimental to business interests.
