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Ignoring child labor laws costs franchisee owner over $100,000

Different Freddy’s locations in Alabama are facing major consequences for not handling their teen workers with child labor laws.

A teenage worker in a coffee shop offers a drink to a paying customer within bounds of the child labor laws.

Seven Freddy’s Frozen Custard & Steakburgers franchise locations in Alabama are in hot water with the U.S. Department of Labor after investigators found that managers allowed children under the age of 16 to work longer hours and later hours than permitted under federal child labor laws. In one store, a 15-year-old child was allowed to operate a manual deep fryer, illegally. The Wage and Hour Division charged the employer with $119,029 civil penalties to resolve its issues. 

Freddy’s Frozen Custard & Steakburgers has over 500 locations across 36 states and Canada. These findings only pertain to seven locations in Alabama, two stores in Birmingham, one store in each, Tuscaloosa, Pell City, Helena, Hoover, and Jasper. These stores are owned by Mark Houghton. 

Can 14- and 15-year-olds work? 

The Fair Labor Standards Act restricts the hours of children under the age of 16 to keep them safe and to provide a positive environment for their first jobs. They need to develop skills, but a job should not endanger their health, nor should it jeopardize their schoolwork. Children who are 14 or 15 cannot work more than 3 hours on a school day. They cannot work after 7 pm during the school year, and from June 1 to Labor, they cannot work past 9 pm. There are also some machines that OSHA deems too dangerous for them to operate.  

Last year, the Department of Labor found that child labor violations had increased 150% since 2018. In one year, the Wage and Hour Division found violations involving over 5,700 children throughout the United States. Employers were assessed over $8M in penalties as part of addressing the problems. Unfortunately, this may only be the tip of the iceberg, since many children under 18 don’t know the law and may not report their employer. 

Know the rules

Employers, employees, parents, and educators can get more information about federal child labor laws on the DOL’s website under the YouthRules! Initiative. Many states have laws pertaining to child labor as well. Whichever law is more restrictive applies. As we approach summer, when more children want to work, it’s important to make sure your business is following the rules.

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Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.

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