McDonald’s Seeks Tighter Child-Labor Compliance By Franchisees

(Bloomberg) -- McDonald’s Corp. will survey its US franchisees about their child-labor practices — a step toward tightening compliance following a series of violations by restaurant operators. 

The US Department of Labor fined franchisees in Kentucky, Pennsylvania, Tennessee, Louisiana and Texas this year after the agency found minors operating dangerous equipment and working longer-than-allowed hours. In one case, a 15-year-old suffered hot oil burns while using a deep fryer that didn’t have the required automatic basket to raise and lower the food. In another, two 10-year-old children were employed but not paid and worked as late as 2 a.m. 

In 2024, the fast-food company will increase its focus on “employee and brand protection by incorporating topics such as responsible recruitment and workplace safety for minors,” according to a memo sent to US employees and operators obtained by Bloomberg News. McDonald’s last year implemented mandatory workplace standards for both franchised and company-owned locations amid accusations that it overlooked workplace abuse. 

In a statement to Bloomberg News, the Chicago-based company said it plans to survey franchisees about their practices on the employment of minors next year. The goal is to “help determine additional trainings or other resources that may be useful to them in the future.”

McDonald’s said the incidents don’t reflect the experience of the majority of minor workers at its more-than 14,000 US locations. The company and its franchisees “provide job opportunities for thousands of teenagers working in age-appropriate restaurant roles,” a spokesperson said in an email. 

The company said earlier this year that the 10-year-olds were the children of a night manager who brought them into the restaurant without permission. “Any ‘work’ was done at the direction of — and in the presence of — the parent without authorization by franchisee organization management or leadership,” according to McDonald’s. 

The bulk of its US restaurants are run independently by its more-than 2,000 franchisees, the company said, and McDonald’s provides training and resources on hiring, scheduling and restaurant safety “to help franchisees ensure compliance with minor labor laws.”

McDonald’s didn’t offer more details on the surveys or elaborate on further plans beyond saying the company “will continue to partner with our franchisees on this important work.” 

Renewed Attention

Seth Harris, a former acting labor secretary, said that seeking feedback from franchisees about additional training isn’t enough to curb violations. Companies should also help train franchisees and managers on how to best find adult workers and how to comply with areas of the law that pose heightened risk, like minors working longer than they should, he added. 

McDonald’s requires franchisees to comply with “federal, state, and local laws, ordinances, and regulations” and can terminate agreements if operators engage in conduct that could harm the company’s reputation, according to a legal disclosure document. The company also says it shares guidance from the Labor Department with franchisees and third-party training sessions on employing minors. It also discusses best practices at field office meetings.

Following some of the labor department’s findings, a group of shareholders led by SOC Investment Group sent a letter to McDonald’s in June requesting a third-party assessment of the company’s human-rights risk, among other changes. The company responded in July but hasn’t committed to implementing the actions the group suggested, Louis Malizia, SOC’s corporate governance director, said Dec. 12. 

The Labor Department has placed renewed attention on child labor after news reports and an investigation by the agency uncovered more than 100 undocumented children working overnight shifts cleaning meatpacking facilities. In response, President Joe Biden’s administration launched a special enforcement initiative in February.

McDonald’s has also faced allegations by teenage staff in the UK that sexual misconduct is rife at the fast-food chain. The company has said it was investigating all claims and that it had hired PricewaterhouseCoopers LLP to evaluate its procedures.

“This process is underway, and we plan to implement new steps identified by this review as appropriate,” Alistair Macrow, chief executive officer of McDonald’s UK and Ireland, said in an emailed statement.

--With assistance from Josh Eidelson.

More stories like this are available on bloomberg.com

©2023 Bloomberg L.P.