Tag Archive for: Fast Food

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Shareholders demand McDonald’s and Wendy’s tackle child labor problems.

[Via The Washington Post, May 9, 2024]

Citing work by The Washington Post, shareholders are asking the companies for a zero-tolerance policy at their franchises.

“A group of powerful investment managers and public treasurers with assets invested in McDonald’s are demanding that the company take tougher steps to address child-labor violations at its franchises.”

Read the rest of the article here.

 

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“Oakland Popeyes operator to pay huge sum to feds after allegedly hiring kids as young as 13”

To view “Oakland Popeyes operator to pay huge sum to feds after allegedly hiring kids as young as 13” in the S.F. Chronicle, please click here.
 
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U.S. DOL News Release: Court orders operators of 14 Bay Area Subway locations to pay employees nearly $1M in wages, damages; sell or shut down their businesses

News Release/U.S. DOL/September 29, 2023

Labor Department finds employers endangered children, bounced paychecks, stole tips

SAN FRANCISCO – The U.S. District Court for the Northern District of California has ordered the owners and operators of 14 Bay Area Subway restaurants to pay employees nearly $1 million in back wages and damages after federal investigators found they directed children as young as 14 and 15 to use dangerous equipment and assigned minors to work hours not permitted by law; failed to pay employees their wages regularly, including by issuing them hundreds of bad checks; and illegally kept tips left by customers.

In a rare action, the court’s order requires the owners to sell or shut down their businesses by Nov. 27, 2023, a term the department insisted on to resolve the case.

The action comes after the department’s Wage and Hour Division found these and other violations of the Fair Labor Standards Act by John Michael Meza and his wife, Jessica L. Meza, who had franchise agreements with franchisor and operator Doctor’s Associates LLC to operate the restaurants in Antioch, Clayton, Concord, Cotati, Napa, Petaluma, San Pablo, Santa Rosa, Vallejo and Windsor.

Investigators also found the employers interfered with the division’s review by coercing employees not to cooperate and threatening children who raised concerns or tried to exercise their legal rights. The department’s investigation also found that the Mezas’ associate, Hamza “Mike” Ayesh, played a role in these violations, including threatening an employee who complained about receiving a bounced payroll check.

The department obtained a preliminary court injunction on May 19, 2023, forbidding the employers from violating child labor laws, threatening and retaliating against workers and obstructing a federal investigation.

On Sept. 27, 2023, the department obtained a consent judgment and permanent injunction that orders the Mezas to pay 184 workers $475,000 in minimum wage, overtime and tips and an equal amount in liquidated damages. The court also ordered them to pay $150,000 in penalties. The Mezas and Ayesh will also have to pay $12,000 in punitive damages for their retaliatory conduct.

“Thanks to some very brave young people who stood up to their employers’ exploitation and attempts to intimidate them, the Department of Labor and a federal court are holding these business owners accountable,” said Wage and Hour Regional Administrator Ruben Rosalez in San Francisco. “With the combined efforts of Wage and Hour Division investigators and the department’s Office of the Solicitor, these employers are facing the consequences for endangering the safety and well-being of children and violating federal law.”

Read more

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U.S. DOL News Release: Three McDonald’s Franchises in Kentucky Pay $212,000 in Fines after Federal Investigations Find 305 Minors — Including 10-year-olds — Working Illegally

USDOL News Release May 2, 2023

Louisville-area franchisees employed minors to work later, longer than law permits

LOUISVILLE, KY – Working in a kitchen late at night near dangerous cooking equipment is a reality for many adults in the food service industry. But finding 10-year-old kids in such a work environment is a cause for concern and action by the U.S. Department of Labor.

Investigators from the department’s Wage and Hour Division found two 10-year-old workers at a Louisville McDonald’s restaurant among many violations of federal labor laws committed by three Kentucky McDonald’s franchise operators. The investigations are part of the division’s ongoing effort to stop child labor abuses in the Southeast region.

The division investigated Bauer Food LLC, Archways Richwood LLC and Bell Restaurant Group I LLC – three separate franchisees that operate a total of 62 McDonald’s locations across Kentucky, Indiana, Maryland and Ohio – and found they employed 305 children to work more than the legally permitted hours and perform tasks prohibited by law for young workers. In all, the investigations led to assessments of $212,544 in civil money penalties against the employers.

“Too often, employers fail to follow the child labor laws that protect young workers,” explained Wage and Hour Division District Director Karen Garnett-Civils in Louisville, Kentucky. “Under no circumstances should there ever be a 10-year-old child working in a fast-food kitchen around hot grills, ovens and deep fryers.”

The division’s investigations found the following:

  • Bauer Food LLC, a Louisville-based operator of 10 McDonald’s locations, employed 24 minors under age 16 to work more than legally permitted hours. These children sometimes worked more hours a day or week than the law permits, whether or not school is in session. Investigators also determined two 10-year-old children were employed – but not paid – and sometimes worked as late as 2 a.m. Below the minimum age for employment, they prepared and distributed food orders, cleaned the store, worked at the drive-thru window and operated a register. The division also learned that one of the two children was allowed to operate a deep fryer, a prohibited task for workers under 16 years old. The division assessed $39,711 in civil money penalties to address the child labor violations.
  • Archways Richwood LLC – a Walton-based operator of 27 McDonald’s locations – allowed 242 minors between age 14 and 15 to work beyond the allowable hours. Most worked earlier or later in the day than the law permits and more than three hours on school days. The division assessed the employer with $143,566 in civil money penalties for their violations.
  • Bell Restaurant Group I LLC is a Louisville-based operator of four McDonald’s locations and part of Brdancat Management Inc., a larger enterprise that includes Jesse Bell I, Jesse Bell V and Bell Restaurant Group II, which operates an additional 20 locations in Maryland, Indiana and Kentucky. The division found the employer allowed 39 workers – ages 14 and 15 – to work outside of and for more hours than the law permits. Some of these children worked more than the daily and weekly limits during school days and school weeks, and the employer allowed two of them to work during school hours. To address the child labor violations, the division assessed the employer $29,267 in civil money penalties. Investigators also found the employer systemically failed to pay workers overtime wages they were due and as a result, the division recovered $14,730 in back wages and liquidated damages for 58 workers.

Federal child labor regulations limit the types of jobs minor-aged employees can perform and the hours they can work. Hours limits for 14- and 15-year-olds include:

  • Work must be performed outside of school hours.
  • No more than 3 hours on a school day – including Fridays – and no more than 8 hours on a non-school day.
  • No more than 18 hours during a school week and no more than 40 hours during a non-school week.
  • No earlier than 7 a.m. and no later than 7 p.m., except between June 1 and Labor Day when the evening hour is extended to 9 p.m.

“We are seeing an increase in federal child labor violations, including allowing minors to operate equipment or handle types of work that endangers them or employs them for more hours or later in the day than federal law allows,” said Garnett-Civils. “An employer who hires young workers must know the rules. An employer, parent or young worker with questions can contact us for help understanding their obligations and rights under the law.”

While most cases with child labor violations involve minors working more and later than the law permits, the division found 688 minors employed illegally in hazardous occupations in fiscal year 2022, the highest annual count since fiscal year 2011. Among those was a 15-year-old minor injured while using a deep fryer at a McDonald’s in Morristown, Tennessee in June 2022.

“One child injured at work is one too many. Child labor laws exist to ensure that when young people work, the job does not jeopardize their health, well-being or education,” added Garnett-Civils.

The Wage and Hour Division offers multiple tools to help employers understand their responsibilities and offers confidential compliance assistance to anyone with questions about how to comply with the law by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The department can speak with callers in more than 200 languages. The division also recently published Seven Child Labor Best Practices for Employers.

Visit the agency’s website to learn more about the Wage and Hour Division, including information about protections for young workers on the department’s YouthRules! website.

Agency
Wage and Hour Division
Date
May 2, 2023
Release Number
23-685-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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