Poultry Processor Violated Child Labor Laws
Poultry Processor Violated Child Labor Laws | News Specialty Food Association
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The Executive Poultry Inc. Found Guilty of Illegal Employment Practices
The U.S. Department of Labor’s Wage and Hour Division and Office of the Solicitor have discovered illegal employment practices by California poultry processor and supplier, The Executive Poultry Inc. The company has been providing products to various retailers and distributors, including Ralphs, Aldi, Grocery Outlet, and Sysco Corp, as reported by the U.S. Department of Labor.
Aldi Denies Involvement
Aldi has denied any association with the processing facility.
“At Aldi, we have stringent processes for identifying vendors and suppliers to ensure all business partners are compliant with all legal and regulatory requirements,” stated an Aldi spokesperson. “The Exclusive Poultry has never been an Aldi supplier.”
Grocery Outlet, Ralphs, and Sysco could not be reached immediately for comment.
Violation of Child Labor Regulations
During their investigation, the Division found that The Exclusive Poultry Inc. and related companies, established by owner Tony Bran, employed children as young as 14 years old. These children were involved in deboning poultry using sharp knives and operating power-driven lifts to move pallets. Additionally, the children were made to work excessive hours, which violated federal child labor regulations. The company also retaliated against employees who cooperated with investigators by reducing their wages.
As a result of these violations, the poultry processor has agreed to pay nearly $3.8 million in back wages, damages, and penalties. The Department of Labor found that the company recklessly endangered young workers in Southern California.
Failure to Pay Overtime Wages
The Division also determined that Bran, The Exclusive Poultry, and their associated companies willfully failed to pay required overtime wages to their employees. Even when the employees worked 50 or 60 hours per week, they were paid either a piece rate or a straight time hourly rate. Furthermore, the employers failed to maintain necessary records by intentionally omitting workers from payroll records.
“The Exclusive Poultry and owner Tony Bran willfully withheld workers’ hard-earned wages, endangered young workers, and retaliated against employees to conceal their wrongdoing,” stated Jessica Looman, wage and hour administrator for the Department of Labor. “The Wage and Hour Division will continue to work at every level of the industry to prevent employers or retailers from exploiting workers, including children, for profit.”
Legal Actions Taken
Upon confirming the child labor and overtime violations, the Department’s Office of the Solicitor obtained a temporary restraining order and an injunction from the U.S. District Court. These legal measures prevent Bran and The Exclusive Poultry from shipping any “hot goods” into commerce. In this case, “hot goods” refer to poultry produced in violation of the Fair Labor Standards Act and any goods from a location where child labor was observed by the department.
“The department will not hesitate to invoke the hot goods provision of the Fair Labor Standards Act – including perishable goods – to combat the scourges of wage theft and child labor in our economy,” stated Seema Nanda, solicitor of labor for the Department of Labor. “Employers who violate the FLSA and their downstream distributors and customers should be on notice that we will use all tools at our disposal to protect workers, regardless of age and immigration status. We encourage workers to come forward and report employers that withhold workers’ wages or put their safety at risk.”
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