Perdue Farms Settles for $4 Million Over Child Labor Violations

In January 2025, Perdue Farms agreed to a $4 million settlement with the U.S. Department of Labor following an investigation that uncovered the employment of minors in hazardous roles at its Accomac, Virginia, facility. This case is part of a broader trend of increasing child labor violations in the United States, particularly within the meat processing industry.

The Department of Labor's Wage and Hour Division found that, as far back as 2020, Perdue Farms, in partnership with staffing agency Staff Management Solutions LLC (SMX), employed minors to debone and process chicken using equipment such as electric knives and heat-sealing presses. Additionally, these minors worked beyond legally permitted hours during school weeks, violating the Fair Labor Standards Act (FLSA). (dol.gov)

Under the settlement, Perdue Farms committed to paying $4 million in restitution, which includes a $150,000 civil monetary penalty. SMX was fined $125,000 and permanently enjoined from future child labor violations in the meat processing industry. Both companies agreed to implement enhanced compliance measures, such as prohibiting the hiring of individuals under 18 in certain locations, providing mandatory training on child labor laws for managers and employees, and establishing a designated tip line for reporting compliance issues. (dol.gov)

Perdue Farms stated that while they disagreed with the Department of Labor's findings, they recognized the importance of addressing the child labor crisis. The company announced the establishment of a $2 million fund for the benefit of impacted minors and an additional $2 million in contributions to organizations like Eastern Shore Community College and Kids in Need of Defense (KIND). (corporate.perduefarms.com)

This settlement is part of a larger pattern of increasing child labor violations in the United States. In fiscal year 2023, the Department of Labor concluded 955 investigations that found child labor violations, a 14% increase from the previous year. Nearly 5,800 children were employed in violation of the law, marking an 88% increase since 2019. The department assessed more than $8 million in penalties for these violations, an 83% increase compared to the previous year. (dol.gov)

The meat processing industry has been a focal point for these violations. In February 2023, Packers Sanitation Services Inc. (PSSI) was fined $1.5 million for employing over 100 children in hazardous roles across multiple states. These minors were tasked with cleaning dangerous equipment during overnight shifts. (blog.dol.gov)

More recently, in May 2025, U.S. Senator Josh Hawley initiated an investigation into Tyson Foods following allegations of child labor at one of its processing plants. A former employee reported witnessing underage workers and received similar accounts from other staff. Tyson Foods has denied these allegations, stating they do not permit individuals under 18 to work in their plants. (reuters.com)

In response to the rising trend of child labor violations, Senators Josh Hawley (R-Mo.) and Cory Booker (D-N.J.) introduced the Preventing Child Labor Exploitation Act in October 2023. This bipartisan legislation aims to strengthen enforcement and penalties related to child labor laws. (axios.com)

The resurgence of child labor violations raises significant concerns about the enforcement of labor laws and the protection of minors in the workforce. These incidents highlight vulnerabilities in industries relying on third-party staffing agencies and underscore the need for robust compliance measures. The settlements and legislative actions reflect a growing commitment to safeguarding children from exploitation in hazardous work environments.

The Perdue Farms settlement serves as a stark reminder of the ongoing challenges in enforcing child labor laws within the United States. As violations continue to rise, it is imperative for both regulatory bodies and corporations to collaborate in strengthening protections for minors in the workforce.