Walmart settles Pa. child labor violations for $7.8 million

Walmart has agreed to pay $7.8 million to settle alleged violations of Pennsylvania’s Child Labor Act at stores across the commonwealth, the Shapiro administration announced Monday. 

Stemming from an investigation of minors injured while working in Walmart stores, the settlement also requires the company to take measures to ensure compliance and prevent future violations, the administration said in a statement.

The settlement amount includes $7.68 million in administrative penalties and $142,785 in fines Walmart paid during the initial stages of an investigation by the state Department of Labor and Industry. It is the largest such settlement in the commonwealth’s history, the statement said.

Gov. Josh Shapiro noted his administration made historic investments in apprenticeships and career training, eliminated college degree requirements for many state jobs and ensured workers are protected. 

“Standing with workers also means making sure they are paid for every penny they are owed and the laws that protect them are followed and upheld,” he said in the statement, adding the department has increased labor law enforcement. “Every employer in Pennsylvania should be on notice: we will not tolerate you taking advantage of our youngest workers.”

Labor and Industry Secretary Nancy A. Walker said employers are responsible for following labor laws that are designed to protect children in the workplace. 

She added that when investigators detected a pattern of violations at Walmart’s stores, they knew they needed to look beyond those stores. 

“This settlement is the result of our team’s work to hold Walmart accountable across the Commonwealth, and the future commitments we’ve secured will help prevent these violations from happening again. Protecting young workers is one of our most important responsibilities, and we take it seriously,” Walker said.

A Walmart spokesperson said the company is pleased to have resolved the matter.

“We have processes in place to support compliance with applicable laws, including the paperwork requirements, and we regularly review and improve them,” the spokesperson said.

Labor and Industry’s Bureau of Labor Law Compliance received referrals from the Bureau of Workers’ Compensation about minors who were injured while working at Walmart stores. Investigators audited eight stores across Pennsylvania and found an average of 65 violations per audit. 

They included failing to obtain work permits for minor employees, failing to notify schools when a minor was hired or terminated, failing to provide required breaks and allowing minors to work longer hours than permitted by state law. 

After finding a pattern of violations, the bureau expanded the enforcement efforts to Walmart stores statewide and pursued a settlement. 

In addition to fines and penalties, Walmart agrees to provide training to managers on child labor laws, workplace postings that explain employee rights and records related to minor employees at six-month and one-year intervals after the settlement date.

The company has also agreed to double fines for any future violations.

Under the Shapiro administration, Labor and Industry has investigated more than 2,200 child labor complaints and found violations by hundreds of employers, the statement noted.