Dive Brief:
- Massachusetts has issued citations totaling $226,385 in penalties against Dunkin’, McDonald’s and Subway operators in the Commonwealth, with the attorney general alleging the operators violated child labor law.
- Attorney General Andrea Joy Campbell cited Cafua Management Company (a Dunkin’ operator), The Brewster Company (a McDonald’s operator) and Knight Foodservice (a Subway operator). Combined, the three companies operate over 80 QSR locations in Massachusetts.
- The attorney general said the franchisees failed to secure proper work permits before employing minors, in addition to other employment violations.
Dive Insight:
Many restaurant companies have run afoul of child labor laws in recent years in a wide range of jurisdictions, from a Blaze Pizza operator in Nevada to Chipotle’s stores in the District of Columbia. In late 2023, McDonald’s announced it would survey its franchisee child labor compliance after a string of high-profile Department of Labor investigations.
In the Massachusetts case, Campbell’s office reached a settlement with Cafua in which the Dunkin’ franchisee agreed to pay $140,000 dollars. The Commonwealth alleged that between 2020 and 2023, Cafua neglected to secure work permits for minors before employing them; worked 16- and 17-year-olds past the legal limit — nine hours in Massachusetts — and employed minors after 8 p.m. without direct supervision. Cafua operates more than 80 Dunkin’ units in the Commonwealth.
Brewster, an eight-unit McDonald’s operator, also allegedly failed to get permits, worked its minor employees too long and during prohibited hours. The Golden Arches franchisee settled the allegations for $63,390.
Knight Foodservice, which was accused of the same practices as the other franchisees, also failed to give meal breaks to minors working more than six hours a day and maintained insufficient records, Campbell’s office said.
The Wage and Hour Division of the U.S. Department of Labor found a 31% increase in child labor violations from 2019 to 2024.
According to a DOL report to Congress, “to assist the restaurant industry in complying with child labor laws, in 2023, national brands partnered with [Wage and Hour Division] to deliver webinars highlighting best practices and child labor compliance strategies.”
Federal courts scrapped a rule that would have held franchisors accountable for some franchisee labor law violations in 2024. A similar Joint-Employer measure in California was torpedoed in a compromise between the Service Employees International Union, the International Franchise Association, the National Restaurant Association and the administration of Gov. Gavin Newsom.
