Fast Food Brands Duck Joint Liability for Child Labor Violations
Fast Food Brands Duck Joint Liability for Child Labor Violations Bloomberg Law
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Addressing Child Labor Violations at Franchised Locations
Major brand names are facing new pressure to address child labor violations at their franchised locations following a surge in cases involving fast food restaurants and other businesses operating under corporate licensing agreements.
Franchise Model and Labor Violations
Most fast-food and drive-through restaurants aren’t run by the name hanging above the door, but are actually independent owners who have signed a licensing agreement with a corporation to operate under their brand.
Throughout the Biden administration, the US Labor Department’s Wage and Hour Division has cited at least 33 independent franchisees of McDonald’s, Sonic Drive-In, Dunkin’ Donuts, among other national brands, for violations ranging from allowing kids to work too late or operate dangerous equipment.
Sustainable Development Goals (SDGs)
- Goal 4: Quality Education
- Goal 8: Decent Work and Economic Growth
- Goal 10: Reduced Inequalities
- Goal 16: Peace, Justice, and Strong Institutions
Lack of Explicit Language in Licensing Agreements
Despite the nature of the labor violations occurring at franchised businesses, it’s uncommon for corporations to include explicit language on complying with federal labor laws in their licensing agreements. The brand owners are reticent to exert control in a way that will make them joint employers in these franchise arrangements.
Enforcement Actions and Violations
In recent years, the US Labor Department has issued citations against multiple franchise locations for child labor violations. For example, McDonald’s franchise locations in Louisiana and Texas were cited for allowing minors to work beyond the permitted hours and operate prohibited equipment. Similarly, operators of Sonic Drive-In locations in Kansas were ordered to stop violating child labor rules.
Increased Attention and Calls for Action
Minors working in dangerous conditions have drawn increased attention across the US. This has prompted new calls for the brands behind these franchise operations to prevent child labor violations.
Franchise Agreements and Labor Laws
Corporations set strict rules for franchisees, but it’s rare for an agreement to include specific guidelines about complying with labor laws. Franchisers resist including such language to avoid joint employer liability.
Companies’ Response
Of the 19 franchise brands cited for child labor violations, only two responded to a request for comment on how their licensing agreements could help deter such violations. Both companies stressed that illegal child labor practices aren’t tolerated but didn’t provide details on their response to the violations.
Child Labor Enforcement
The US Labor Department has announced a special taskforce on child labor and plans to apply further scrutiny to companies conducting business with employers that use illegal child labor. The department is also updating its guidance documents and reaching out to franchise corporations to increase accountability for child labor abuses.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms. | – Number of child labor violations cited by the US Labor Department’s Wage and Hour Division – Violations of child labor rules found in franchise locations |
| SDG 12: Responsible Consumption and Production | 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle. | – Compliance of franchise corporations with labor laws – Inclusion of specific instructions about labor law compliance in franchise handbooks |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The issues highlighted in the article are connected to SDG 8: Decent Work and Economic Growth and SDG 12: Responsible Consumption and Production.
2. What specific targets under those SDGs can be identified based on the article’s content?
Based on the article’s content, the specific targets that can be identified are:
- Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms.
- Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets:
- Number of child labor violations cited by the US Labor Department’s Wage and Hour Division: This indicator reflects the extent of child labor violations occurring in franchise locations.
- Violations of child labor rules found in franchise locations: This indicator provides specific examples of child labor violations in franchised businesses.
- Compliance of franchise corporations with labor laws: This indicator measures the extent to which franchise corporations are adhering to labor laws.
- Inclusion of specific instructions about labor law compliance in franchise handbooks: This indicator assesses whether franchise handbooks provide guidelines for complying with labor laws, including those related to child labor.
4. SDGs, Targets and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms. | – Number of child labor violations cited by the US Labor Department’s Wage and Hour Division – Violations of child labor rules found in franchise locations |
| SDG 12: Responsible Consumption and Production | 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle. | – Compliance of franchise corporations with labor laws – Inclusion of specific instructions about labor law compliance in franchise handbooks |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: news.bloomberglaw.com
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