U.S. Department of Labor Investigation Results in Michigan McDonalds Franchisee Paying $26,487 Penalty for Child Labor Violations at 10 Restaurants

JACKSON, MI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Stejoca Inc. - a Jackson, Michigan, operator of 10 McDonalds’ restaurants - has paid $26,487 in civil money penalties for child labor violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined Stejoca Inc. employed 73 employees - ages 14 and 15 - to work more than 3 hours on days when school was in session, and work more than 8 hours on days when school was not in session. Stejoca Inc. also allowed the teenagers to work later than 7 p.m. between Labor Day and June 1, and after 9 p.m. from June 1 through Labor Day, all in violation of federal wage laws.

“Employment standards for fourteen and fifteen year olds ensure minors gain a positive work experience that does not interfere with their education, health, and well-being,” said Wage and Hour District Director Mary O’Rourke, in Grand Rapids. “Child labor violations can be avoided when employers understand the rules. We encourage employers to contact us for guidance, and make use of the wide variety of compliance tools we offer.”

The investigation led Stejoca Inc. to revamp its child labor compliance program, and to implement a new timekeeping system that automatically screens punch-in and out times for 14-15 year olds and alerts management of any potential conflicts with legal requirements. The employer has also vowed to exercise more oversight to ensure store managers and supervisors comply with the law at all 10 of its McDonalds stores.

For more information about the FLSA, child labor provisions and other laws enforced by WHD, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.