US Department of Labor reaches agreement with Perdue Farms, secures judgment against staffing agency to address child labor violations

The U.S. Department of Labor has reached agreements with Perdue Farms Inc. and staffing agency Staff Management Solutions LLC (SMX) following an investigation into child labor violations at Perdue’s poultry processing facility in Accomac, Virginia.

Investigators from the department’s Wage and Hour Division found that, since 2020, Perdue contracted with SMX to staff production-level jobs and that they jointly employed children in hazardous occupations. The children were tasked with deboning and processing poultry using dangerous equipment, including electric knives and heat-sealing presses. Additionally, they worked after 7 p.m. on school nights, violating the Fair Labor Standards Act (FLSA) provisions on hazardous jobs and work hours for minors.

The investigation also determined Perdue violated the FLSA’s “hot goods” provision, which prohibits shipping goods produced in facilities where illegal child labor is used.

As part of the agreement, Perdue Farms will pay $4 million in restitution to affected children, child labor advocacy organizations, and initiatives aimed at preventing child labor exploitation. The company also agreed to a $150,000 civil monetary penalty. Similarly, SMX consented to pay a $125,000 civil penalty and has been permanently barred from future FLSA child labor violations in the meat processing and packing industry.

“Addressing child labor exploitation requires strong enforcement and corporate accountability,” said Wage and Hour Administrator Jessica Looman. “Perdue Farms has committed to meaningful measures to stop and prevent these violations, not only at its facilities but throughout the industry.”

Perdue and SMX also agreed to implement enhanced compliance measures, including:

• Prohibiting the hiring of individuals under 18 in certain locations.
• Providing mandatory child labor training for managers and employees.
• Establishing disciplinary actions, up to termination, for noncompliance with federal child labor laws.
• Instituting protections against retaliation for employees reporting labor law violations.
• Creating a tip line for employees to report compliance concerns.
• Increasing reporting on compliance efforts.

The Department of Labor emphasized that joint employment applies under the FLSA, making both Perdue and SMX accountable for ensuring compliance with labor laws.

Headquartered in Salisbury, Maryland, Perdue Farms operates two divisions, Perdue Foods and Perdue AgriBusiness, while SMX is a subsidiary of TrueBlue, a major U.S. staffing firm based in Seattle, Washington. This enforcement action underscores the Department of Labor’s commitment to addressing child labor and ensuring corporate accountability across industries.