Popeyes Franchisee Hit with Six-Figure Fine for Child Labor and Overtime Violations

A Popeyes Chicken & Biscuits franchisee, operating under the name 14th St. Chicken Corp., has been found in violation of child labor laws and overtime regulations, leading to a hefty financial penalty.

13-Year-Olds Employed

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The U.S. Department of Labor’s Wage and Hour Division has uncovered that children as young as 13 were employed at the franchisee’s locations in the San Francisco Bay Area. 

The Ethics of Youth Employment

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This discovery has fueled a discussion about labor practices in the fast-food industry and the importance of adhering to labor laws.

Violations at Three Locations

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The investigation, which spanned three of the franchisee’s locations in Oakland, Tracy, and Newark, revealed a concerning pattern of underage hiring and labor violations. 

Overworked Minors

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The investigation revealed that minors were employed beyond the permissible hours as outlined by child labor laws. Additionally, it turned out that employees weren’t compensated with overtime pay for exceeding 40 hours of work per week.

Popeyes Repeats History

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This incident isn’t the first for the Oakland-based Popeyes franchisee, who previously faced similar allegations in 2003 and 2022, particularly in their Oakland and Tracy locations.

Six-Figure Penalty  

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Following these revelations, the franchisee has been mandated to pay a total of $212,860. This sum includes $39,826 in overdue overtime wages, an identical figure in damages to the 15 impacted employees, $121,104 in civil penalties for breaches of “child labor laws,” and an additional $12,104 in fines for the overtime discrepancies. 

Labor Officials React

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In response to these findings, Alberto Raymond, Assistant District Director of the Wage and Hour Division in San Francisco, emphasized the Department of Labor’s dedication to eradicating child labor violations in all areas, including the fast-food sector. 

Safeguarding Minors

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Raymond stressed the crucial role of “child labor laws” in safeguarding minors and ensuring their work experiences are positive and don’t conflict with their schooling.

Over 950 Violations

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This incident is part of a broader issue within the labor market. In the fiscal year 2023 alone, the Wage and Hour Division uncovered child labor violations in over 950 investigations, resulting in more than $8 million in penalties levied against employers. 

More Than a Fast Food Issue

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These numbers highlight the persistent challenge of ensuring adherence to labor laws, notably in sectors frequently employing younger staff. They also shed light on the ongoing efforts of the U.S. Department of Labor to protect workers, particularly minors, in all sectors of the economy.

Minimum Age and Hour Limits

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The Fair Labor Standards Act (FLSA) primarily sets the minimum age for non-agricultural employment at 14 years, limits the working hours for those under 16, and bans employment in hazardous jobs for individuals under 18. 

Special Wage Rates

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The FLSA also specifies subminimum wage rates for specific categories of employees, including those under 20 years, full-time students, student learners, apprentices, and workers with disabilities. 

For employers to pay these subminimum wages, they typically need authorization from the Wage and Hour Division (WHD).

Harmful Employment for Minors

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The child labor provisions of the FLSA aim to safeguard the educational opportunities of young people and prevent their employment in roles harmful to their health and safety. 

State vs. Federal Standards

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The Department’s YouthRules! initiative is key in ensuring positive, safe working experiences for young workers. Each state also has its own youth employment standards. In situations where federal and state standards differ, the more protective rules for young workers are applied. 

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