Child Labor in the US: Corporates have a Responsibility to Act
In recent months, investigative journalists have documented numerous cases of alleged child labor in different industries across the US. These incidents serve as a reminder that corporates have a responsibility to ensure their operations and supply chains are free of child labor, no matter the jurisdiction, sector or market. Following Unicef’s Children's Rights and Business Principles and the United Nations’ Guiding Principles on Business and Human Rights, corporates should use their leverage over suppliers and partners to conduct robust human rights due diligence that fosters meaningful engagement with impacted rightsholders.
Child-rights activists and investigative reporters have identified a growing trend of alleged child labor in factories across the US in recent months. A New York Times investigation published in February 2023 documented migrant children as young as 12 working overnight shifts at dangerous jobs to cover their living costs, send remittances home and pay back debts. The children are often employed by global brands and their suppliers across a myriad of sectors, such as automotives, construction, food and beverage, retail, and garments. Activists describe the situation as an “open secret”.
Child labor remains an issue worldwide: a June 2021 report from Unicef and the International Labour Organisation (ILO) estimated that approximately 160 million children participate in the global workforce. But these reports highlight the challenges present even in markets that are traditionally considered low risk due to seemingly robust regulatory protections, such as the US. In line with international standards, US federal law sets 14 as the minimum age for employment in non-agricultural roles and limits the hours children under 16 years of age may work. All minors are barred from employment in manufacturing, warehousing storage and other forms of hazardous work. However, data from the US Department of Labor confirms the number of children working illegal jobs in the US increased by 37% in 2022.
Recent months have also seen a rollback of child labor laws across parts of the US, which child-rights and labor activists argue will only increase instances of child labor. Thirteen states have introduced bills that weaken these protections, and since March 2023, Arkansas, Iowa and Ohio passed such bills: the Arkansas law allows children aged 14 and 15 to work without proving their age or obtaining a parent or guardian’s consent, while Ohio will now permit children of the same ages to work until 21:00 hours throughout the school year. Iowa’s bill, which became law on 26 May, is considered particularly extreme by child rights activists, as it allows children to take jobs previously prohibited due to their hazardous nature in addition to the work hour extension.
Corporate responsibility
Though many factors contribute to the prevalence of child labor in the US, corporates’ failure to identify and mitigate these issues is a particularly important one. Multinational supply chains (particularly for consumer-facing goods) are often multi-tiered, complex and opaque – brands have several layers of suppliers and business partners responsible for manufacturing the products, managing warehouse storage and logistics, and providing laborers. This web of connected entities complicates due diligence.
Nevertheless, corporates should recognize their responsibility to use their leverage over suppliers and business partners to eliminate child labor across all markets and sectors, including those typically considered low risk. The recent reports from the New York Times and other media have been reputationally damaging for the global corporates named in the investigations, with their institutional investors calling for more robust diligence processes. Corporates are also facing potential consumer boycotts and class action lawsuits based on the investigations’ findings, as well as heightened pressure from elected officials to respond to the claims.
In addition to the reputational repercussions, corporations may face federal fines of up to USD 15,000 for child labor law violations, a penalty that is likely to increase. Following the New York Times investigation, the US Department of Labor announced a suite of initiatives to better investigate child labor violations and protect children. These include asking Congress to increase penalties and establishing a joint task force with the Department of Health and Human Services to exchange information on potential violations. The initiatives specifically target brands found to have violated the laws, along with their suppliers and business partners. In March and April 2023, US lawmakers proposed several bills which, if passed, would increase the maximum penalty for child labor law violations to USD 130,000 and establish criminal penalties for “repeat or willful” violations.
The way forward
The current approaches brands and suppliers take to manage these risks, such as age verification checks and limited audits, have proven to be ineffective. To prevent child labor and play a role in protecting children, corporates should implement a robust human rights due diligence process. This should involve:
Increasing leverage over and visibility of suppliers and partners, including those in sectors or markets typically considered low risk.
Conducting human rights impact assessments, with site visits completed by independent third-party providers.
Establishing effective grievance mechanisms.
Developing remediation processes in case of violations, which prioritize the protection of affected children from hazardous work.
Global standards such as Unicef’s Children’s Rights and Business Principles and the United Nations’ Guiding Principles on Business and Human Rights provide established frameworks to implement these measures. Through these efforts, corporates may build meaningful engagement with rightsholders and suppliers, as well as protect against reputationally and legally significant incidents.