S. 5414: Stop Child Labor Act

This bill would change federal child labor law in several ways. Its main purpose is to increase penalties for violations, create more support for employers to avoid violations, and set up a new advisory committee to study and recommend improvements.

Higher penalties for child labor violations

The bill would strengthen the consequences for employers who violate federal child labor rules under the Fair Labor Standards Act.

• Private lawsuits would be expanded: workers affected by child labor violations could seek compensatory damages and punitive damages of up to $250,000 per employee. This would apply to violations of the child labor provisions in Sections 12 and 13(c) of the law.
• Limits on private lawsuits: if the U.S. Secretary of Labor files a lawsuit first seeking legal or equitable relief for the same child labor violations, then employees would no longer be able to bring or join private actions for those violations.
• Civil penalties would increase: the bill would raise federal civil penalty ranges for child labor violations. It would set minimum and maximum penalty amounts instead of the current fixed amounts, with higher ceilings for more serious violations.
• Annual inflation adjustments: the new civil penalty amounts would increase each year starting in fiscal year 2027 based on the Consumer Price Index.
• Criminal penalties would be added for repeat or willful violations: a person who repeatedly or willfully violates a child labor-related provision could be fined up to $50,000, imprisoned for up to one year, or both.
• Applies only to future conduct: these penalty changes would apply only to violations alleged to have occurred on or after the date the bill is enacted.

Grants to help prevent violations

The bill would let the Secretary of Labor award grants to eligible organizations to help employers understand and avoid child labor violations. The grants could support education, training, and systems development aimed at prevention.

Organizations that could receive grants include:

• 501(c)(3) nonprofit organizations
• Nonprofit trade, industry, or employer associations
• Labor-management partnerships
• Labor organizations

National Advisory Committee on Child Labor

The bill would create a new 12-member National Advisory Committee on Child Labor. The committee would include representatives of management, labor organizations, the public, and child welfare professionals, with appointments made by the Secretaries of Labor and Health and Human Services.

The committee would:

• Advise the Secretary of Labor and the Secretary of Health and Human Services
• Make recommendations about recognizing, avoiding, preventing, and enforcing child labor rules
• Meet at least twice a year
• Serve 2-year terms

The bill would allow committee members to be paid, cover travel costs, and permit staff hiring and temporary services. It would also authorize $3 million for fiscal year 2027 to fund the committee.

Relevant Companies

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