A manufacturing company supplying parts for businesses such as John Deere, Toro, and Yamaha was ordered to turn over 1.5 million in profits. On Monday, the US Labor Department announced the manufacturer must tender profits for the benefit of ten children who had been illegally employed in dangerous positions.
A federal consent decree is ordering Tuff Torq in Morristown, Tenn., to stop the illegal employment of children, pay a $296,951 civil fine, and surrender $1.5 million for 30 days' profits to be used for the benefit of the children employed illegally.
The agency said that to date, Tuff Torq "subjected ten children to oppressive child labor."
The Labor Department's Wage and Hour Division had been investigating Tuff Torq for months and, in January, "obtained clear evidence of unlawful conduct" when a child was observed operating a power-driven hoisting apparatus, which is prohibited for workers under 18.
Consequently, the agency suspended a shipment of "hot goods," or goods produced by "oppressive child labor."
"Even one child working in a dangerous environment is too many," Wage and Hour Division Administrator Jessica Looman said in a statement. "Over the past year, we have seen an alarming increase in child labor violations, and these violations put children in harm's way. With this agreement, we are ensuring Tuff Torq takes immediate and significant steps to stop the illegal employment of children. When employers fail to meet their obligations, we will act swiftly to hold them accountable and protect children."
Tuff Torq agreed to several other provisions under the consent decree, along with monetary penalties and an agreement to comply with the Fair Labor Standards Act.
The company revealed plans to establish an anonymous tip line to help report child labor and identify other suspected FLSA violations. It also agreed to allow unannounced and warrantless searches of its facility for three years, refrain from entering any new contracts with staffing agencies or other contractors with child labor violations, and require contractors to disclose child labor violations and hiring protocols, and, contract with a community-based organization to provide regular training to staff, managers, and contractors.
"This consent decree holds Tuff Torq accountable while also discouraging future violations, focusing on the supply chain, and striving to make the victims whole," said Solicitor of Labor Seema Nanda.
"This agreement puts into practice what we have long been saying. The department will not tolerate companies profiting on the backs of children employed unlawfully in dangerous occupations. Tuff Torq has agreed to disgorge profits, which will go to the benefit of the children. This sends a clear message: putting children in harm's way in the workplace is not only illegal but also comes with significant financial consequences."
With reporting by TMX
