The US is experiencing a significant increase in child labor violations, and companies can play a crucial role in addressing this issue by implementing effective compliance measures, conducting thorough risk assessments, and adopting a proactive approach to identifying, preventing, and remediating child labor in their operations and supply chains
Last month, the U.S. Department of Labor (DoL) said it entered into an agreement with meatpacking giant JBS USA, the North American unit of Brazil’s JBS SA, in which the company will provide $4 million to assist individuals and communities affected by unlawful child labor practices nationwide after a DoL investigation discovered that JBS’ third-party service providers employed children in dangerous jobs and during overnight shifts at the company’s facilities in four US states.
Since 2015, the DoL reported a 283% increase in child labor violations; and perhaps more shocking, 28 US states have introduced bills to weaken child labor laws, with 12 of those states enacting those laws since 2021, according to the Economic Policy Institute.
Indeed, the United States is the only country to not have ratified the United Nations Convention on the Rights of the Child according to Malin Liljert, Director of Child Rights in Business, Global Consultancy Services at The Centre for Child Rights & Business (The Centre), an organization dedicated to helping companies address their impact on child rights in supply chains.
New root causes emerge
To understand the prevalence of and the underlying factors in the growth of child labor violations in the US, The Centre conducted two dozen risk assessments across 15 states for the operations of major brands in the US, and the findings are revealing.
A new white paper published by CORE, a human rights due diligence advisory firm, and The Centre, showed that while poverty and economic insecurity — two well-known factors in the presence of child labor — were found to be root causes in this growth of child labor violations, it was a lack of awareness that child labor is a growing risk that was at play as well, according to Ellen Schliebitz, VP, Communications at The Centre. Indeed, the US has a reputation of being the North Star in pursuing justice and what is right, but the facts regarding this spike in child labor violations in the US do not support this.
Since 2015, the DoL reported a 283% increase in child labor violations; and perhaps more shocking, 28 US states have introduced bills to weaken child labor laws.
The white paper also recently revealed several new drivers in the surge of child labor exploitation, including a large influx of unaccompanied minors from other countries who need to earn money to support themselves and send remittances to their home country, rollbacks of child labor laws in some states, and the debate over child labor laws involving how to balance parental rights to make decisions for their children against the government’s role in protecting vulnerable youth from exploitation. Regarding the latter, some argue for less regulation to support family economic needs and choices, while others emphasize the importance of safeguarding children’s rights to education, safety, and healthy development through appropriate oversight and standards.
In addition, gaps in actions by companies contribute to the problem. A lack of child labor policies and remediation procedures, including deficiencies in age-verification processes, exacerbate the issue. Moreover, the use of subcontractors, which masks child employment, and insufficient enforcement and auditing compared to overseas supply chains also have contributed to the rise in unlawful children’s employment. These shortcomings highlight the ongoing need for enhanced due diligence among companies, cross-sector collaboration, and continued child labor risk assessments.
Guidance for companies
To effectively act, a human rights-centered approach to addressing child labor requires companies to implement effective compliance with child labor laws, such as the Fair Labor Standards Act (FLSA), which already requires proactive measures, such as verifying worker age and preventing hazardous employment of minors. Companies also should actively work to identify, prevent, and remediate violations throughout their operations and supply chains.
To begin, companies should first develop a comprehensive understanding and awareness of the issue at all organizational levels, starting with leadership. This awareness is crucial because it sets the tone for the company’s commitment to eradicating child labor. Leaders should ensure that robust policies and procedures are in place, including age-verification processes and training for staff to recognize and report child labor.
Companies also need to adopt a proactive approach by conducting thorough risk assessments and audits, not just of their direct operations but also throughout their supply chains, including among subcontractors and lower-tier suppliers with where child labor is more likely to occur. Engaging with local communities and stakeholders, such as NGOs and child rights organizations, can provide valuable insights and support in identifying and mitigating risks.
A human rights-centered approach to addressing child labor requires companies to implement effective compliance with child labor laws [and implement] proactive measures, such as verifying worker age and preventing hazardous employment of minors.
Further, companies should implement effective remediation processes for those instances in which child labor is identified. This involves establishing clear protocols for removing children from harmful work situation and ensuring their transition to safe environments, such as schools or vocational training programs. Companies need to also provide economic support to the affected families to compensate for the lost income in order to prevent the children’s return to unlawful employment.
Additionally, companies fostering an environment in which workers feel safe to report violations without fear of retaliation — which can be achieved through well-publicized and accessible grievance mechanisms — can go a long a way to further effective remediation efforts.
By addressing child labor issues comprehensively, companies not only fulfill their ethical and legal obligations but also contribute to broader human rights protections and sustainable business practices, while reducing human rights risk exposure in their supply chains. “Companies should make a strategic decision to prevent child labor in their operations and value chains through due diligence,” says Theresa Quiachon, co-founder of CORE. “It is not philanthropy.”
Instead, it is the right thing to do and is a sound strategic business decision that’s based on ethics and maintaining the trust that customers, investors, and the public at large have placed in the company.
You can find out more about how companies are fighting against child exploitation here
