Department Of Labor Finds Louisiana, Texas McDonald's Franchisees Allowed Minors To Work Longer, Later Than Law Permits, Operate Dangerous Equipment; Investigations Identify Violations In Two States Affecting 83 Minors At 16 Locations
Portfolio Pulse from Happy Mohamed
The Department of Labor has found child labor violations at 16 McDonald's franchise locations in Louisiana and Texas, affecting 83 minors. In Louisiana, CLB Investments LLC was fined $56,106 for violations at 12 locations. In Texas, Marwen & Son LLC was fined $21,466 for violations at four locations. This follows a May 2023 announcement of similar violations by three McDonald's franchise operators in Kentucky.
July 25, 2023 | 4:33 pm
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NEGATIVE IMPACT
McDonald's faces potential reputational damage due to child labor violations at franchise locations in Louisiana and Texas. This could potentially impact sales and stock price in the short term.
The news of child labor violations at McDonald's franchise locations could lead to negative public sentiment and potential boycotts, which could impact sales. This, in turn, could lead to a decrease in the company's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100