Illegal Child Labor: 5 Critical Actions Employers Must Know

Illegal child labor remains a serious and growing problem in the United States. Despite the fact that child labor laws have been in place in the United States since 1938, thousands of children continue to fall victim to exploitative child labor each year. In fact, the U.S. Department of Labor saw a 69% increase in children being employed illegally between 2018 and 2022. The U.S. Departments of Labor and Health and Human Services announced new efforts to combat exploitative child labor in February 2023. Per their announcement, the agencies committed to the following actions, some of which have already begun:

Five Federal Actions to Combat Illegal Child Labor

Implementation of an Interagency Taskforce to Combat Child Labor Exploitation:

The Department of Labor is leading an interagency task force to address illegal child labor. This task force includes participants from the departments of Agriculture, Commerce, Education, Health and Human Services, Homeland Security, Justice, and State. According to the Department of Labor, the task force is working to improve cross-training, outreach, education, and health outcomes of children who may be subject to child labor.

Creation of a National Strategic Enforcement Initiative on Child Labor:

The Department of Labor’s Wage and Hour Division will initiate investigations where illegal child labor is most likely to occur. The Wage and Hour Division and the Office of the Solicitor will work together to enforce child labor laws using penalties, injunctions, stopping the movement of goods made with child labor, and criminal referrals.

Increased Accountability for Employers:

All employers will be held accountable for illegal child labor, including those who rely on staffing agencies and subcontracting. Employers will also be held accountable for doing business with companies that use illegal child labor.

Provision of Services for Unaccompanied Children:

The Department of Health and Human Services will work with Congress to provide sufficient resources for the Office of Refugee Resettlement (ORR) to provide post release services to all unaccompanied children and sponsors. The Department of Health and Human Services will also require ORR to make follow-up calls to all children who call the Office of Refugee Resettlement National Call Center with a safety concern. Finally, ORR will provide unaccompanied children and potential sponsors with more information about child labor laws in the United States.

Call on Congress for Support:

The Department of Labor will continue to call on Congress for funding and support to stop illegal child labor. Specifically, they will call on Congress to increase funding for its enforcement agencies and to increase civil monetary penalties for companies that use illegal child labor.

What Employers Can Do to Prevent Illegal Child Labor

Given the continued existence of exploitative child labor in the United States and globally, employers have a responsibility to examine their hiring, contracting, and business practices to eliminate child labor in the supply chain. Employers should provide employees with information about illegal child labor and should encourage individuals to report concerns using proper channels of communication. Providing access to an ethics and compliance hotline such as Red Flag Reporting is one way to encourage employees to speak up. Everyone, from government agencies to individual employees, plays a part in eliminating exploitative child labor.

Red Flag Reporting’s hotline services give employees a confidential way to raise concerns about illegal child labor and other workplace misconduct, with the option to remain anonymous, so that the designated people in your organization can learn about potential problems and address them. To find out how we can help your organization, contact us today.

Frequently Asked Questions About Illegal Child Labor

What is illegal child labor?

Illegal child labor is the employment of minors in violation of federal or state child labor laws. At the federal level, the Fair Labor Standards Act of 1938 limits the hours that 14- and 15-year-olds may work and bars anyone under 18 from jobs the Department of Labor has declared hazardous. Common violations include minors working longer or later hours than the law allows, operating dangerous equipment such as meat-processing machines, and driving motor vehicles or forklifts. Many states also have their own child labor laws, which can be stricter than federal law.

How much has illegal child labor increased in the United States?

According to the U.S. Department of Labor, the number of children employed illegally by companies rose 69% between 2018 and 2022. When it announced its new efforts in February 2023, the Department reported that in the prior fiscal year it had found 835 companies employing more than 3,800 children in violation of labor laws.

What actions did the federal government announce to combat illegal child labor?

In February 2023, the Departments of Labor and Health and Human Services announced an interagency task force, a national strategic enforcement initiative led by the Wage and Hour Division, greater accountability for employers throughout the supply chain, expanded services for unaccompanied children, and calls for Congress to increase enforcement funding and civil monetary penalties.

Can a company be held responsible for illegal child labor by a staffing agency, subcontractor, or supplier?

The Department of Labor has stated that it will hold all employers accountable, including companies that rely on staffing agencies and subcontractors, and that it will apply additional scrutiny to companies doing business with employers that use illegal child labor. Because legal exposure depends on the specific facts and on applicable federal and state law, employers should consult legal counsel about their own contracting relationships.

How can an ethics hotline help prevent illegal child labor?

Employees and others who work in or around your operations are often the first to notice warning signs, such as workers who appear to be underage or minors working late hours or operating dangerous equipment. An ethics hotline gives them a confidential way to report those concerns, with the option to remain anonymous, so that your organization’s designated personnel can review the information and take appropriate action. Red Flag Reporting provides that reporting channel along with the case management tools your team uses to receive and track reports.