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Kentucky restaurants fined $250K over child labor law violations

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Katelyn Walker Mooney Acting Assistant Secretary for Policy | Official Website

The U.S. Department of Labor has reached a settlement with a Glasgow-based restaurant chain, mandating the payment of $250,000 in fines and the implementation of measures to ensure future compliance with federal child labor laws. This follows an investigation that revealed the company employed one child below the legal working age and 37 teenagers for more hours than legally permitted.

The investigation by the department's Wage and Hour Division found that El Mazatlan Inc. violated federal child labor regulations by employing 37 minors aged 14 and 15 for longer hours than allowed under the Fair Labor Standards Act (FLSA). The company also hired a 13-year-old, which is below the legal age limit.

In addition to paying fines, El Mazatlan agreed to comply with regulations moving forward and to create and update training materials on child labor as part of its management training program. The employer will also conduct training sessions with all supervisors and managers.

“Learning new skills in the workforce is an important part of growing up, but we must protect children and ensure their early work experiences do not interfere with their education or well-being,” said Karen Garnett-Civils, district director for the Wage and Hour Division in Louisville, Kentucky. “The Fair Labor Standards Act (FLSA) makes development experiences possible but restricts hours and occupations for workers under 16 years old and imposes penalties when employers fail to comply.”

Additionally, investigators found that El Mazatlan illegally deducted uniform costs from employees' wages, causing them to fall below the federal minimum wage. The employer also failed to pay overtime to three salaried employees who were not exempt from FLSA overtime requirements. Following its investigation, the division recovered $50,233 in back wages plus an equal amount in damages for 168 employees.

“We held El Mazatlan accountable for significant penalties as well as back wages and damages totaling over $350,000,” explained Garnett-Civils. “The Wage and Hour Division is committed to protecting workers’ rights and holding employers accountable when they fail to meet legal obligations regarding employee compensation.”

The division provides numerous free resources explaining employer obligations and how to avoid violations. The YouthRules! initiative promotes positive work experiences for teens by providing information on youth worker protections to young people, parents, employers, and educators. Through this initiative, the U.S. Department of Labor partners promote developmental work experiences preparing young workers for entry into the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to assist businesses in complying with laws.

Both workers and employers can confidentially contact the Wage and Hour Division with inquiries regardless of origin. The division can communicate with callers in over 200 languages. For more information about FLSA or other enforced laws by this agency, contact their toll-free helpline at 866-4US-WAGE (487-9243).

Workers can help ensure accurate work hours tracking by downloading the department’s Timesheet App available for Android or iPhone in English or Spanish free of charge.

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