The U.S. Department of Labor has reached an agreement with Perdue Farms Inc. and secured a separate consent judgment against staffing agency Staff Management Solutions LLC, also known as SMX, to address child labor violations at Perdue's poultry processing facility in Accomac, Virginia.
Investigations by the department’s Wage and Hour Division revealed that since 2020, Perdue Farms contracted with SMX to fill production-level positions and jointly employed minors in hazardous roles. These roles involved deboning and processing chicken using equipment like electric knives and heat-sealing presses. Additionally, children were allowed to work past 7 p.m. during school weeks, breaching the Fair Labor Standards Act (FLSA) regulations on child labor.
The investigation further determined that Perdue Farms violated the FLSA’s "hot goods" provision by shipping products from facilities where illegal child labor was present.
Jessica Looman, Wage and Hour Administrator, stated: “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.”
Perdue Farms has agreed to pay $4 million in restitution to affected children and organizations advocating for victims of child labor while also supporting initiatives aimed at preventing such exploitation. The company will also pay a $150,000 civil penalty.
In a separate ruling by the U.S. District Court for the Eastern District of Virginia in Norfolk, Staff Management Solutions agreed to a $125,000 civil penalty and committed not to violate FLSA child labor laws again within meat processing industries.
Solicitor of Labor Seema Nanda commented: “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.”
Both Perdue Farms and SMX have agreed on several compliance measures including prohibiting hiring under-18s at certain locations; providing mandatory training on child labor laws; disciplining non-compliant staff up to termination; protecting employees who report violations; establishing a tip line for reporting issues; and enhancing compliance reporting.
Perdue Farms Inc., headquartered in Salisbury, Maryland operates through its divisions - Perdue Foods and Perdue AgriBusiness. Staff Management Solutions is part of TrueBlue based in Seattle.
In fiscal year 2024 alone, over 736 cases involving 4,030 children were concluded by the department resulting in penalties exceeding $15 million—a significant increase from previous years—as it continues prioritizing protection against unlawful practices targeting minors across various industries nationwide.
For confidential inquiries regarding wage-related matters or regulations concerning dangerous jobs prohibited for minors under age eighteen—contact can be made via their helpline accessible toll-free at 866-4US-WAGE (487-9243).
