Labor & Employment Law Daily Wrap Up, DOL NEWS—DOL announces new violations, allegations of anti-union activity, grants, (Jun 20, 2025)

By Jonathan Anderson

The grants support disaster-relief jobs and employment and training services after severe storms and layoffs hit Kentucky.

The DOL announced recent developments involving safety and wage violations, allegations of anti-union activity, and employment-related grants. OSHA cited two employers for exposing workers to crushing hazards following an employee fatality in Florida, with one of the companies paying $19,860. The Wage and Hour Division reached a settlement with an Idaho grocery store, which will pay $250,833 in civil money penalties for child labor violations and $5,078 in back wages and damages for FLSA overtime infractions. Meanwhile, the Bureau of International Labor Affairs issued a press release about recent action in response to allegations that a Mexican pipe company that exports to the United States was denying workers’ rights. The Employee and Training Administration also announced two new grants in Kentucky.

OSHA citations after fatality. OSHA has cited two event production companies for exposing workers to crushing hazards following an October 2024 employee fatality at a festival in Florida. Stage FX Inc. and James Thomas Productions LLC were cited with serious violations for allegedly failing to maintain structural stability during the erection of a stage and failing to provide proper employee training on the associated hazards. James Thomas Productions paid $19,860 to address the violations, while Stage FX has contested the findings before the independent Occupational Safety and Health Review Commission.

Child labor, OT violations. Swensen’s Magic Markets LLC has agreed to pay $250,833 in civil money penalties to resolve reported child labor violations. The south-central Idaho grocery store also will pay $5,078 in back wages and damages to three employees for FLSA overtime infractions. Investigators determined that the employer violated federal child labor laws by allowing six minors to work in hazardous duties, such as cleaning meat slicers, meat tenderizers and grinders, loading trash compactors, and operating a rotisserie. The company also required youth to work outside of legally allowed hours and employed a 13-year-old child, which is under the legal age of employment in non-agricultural jobs. In addition to the penalties, the employer agreed to take steps to ensure future compliance with federal child labor laws. The WHD also found that the company failed to combine all work hours from various locations, resulting in overtime violations for three workers who did not receive additional half-time pay for hours worked over 40 in a workweek. The division recovered $2,539 in back wages and an equal amount in damages for those workers.

Mexican union alleges denial of rights. The U.S.-Mexico-Canada Agreement’s (USMCA) Interagency Labor Committee for Monitoring and Enforcement has requested that the government of Mexico review an alleged denial of workers’ rights, according to the DOL’s Bureau of International Labor Affairs. The request concerns Tubos de Acero de Mexico S.A. (TAMSA), a manufacturer of seamless steel pipe in Veracruz, Mexico, that exports to more than 50 countries, including the United States. On May 14, 2025, SINAIN, a Mexican union, filed a petition under the USMCA’s Rapid Response Mechanism alleging that the company is systematically denying SINAIN members their right to freedom of association and collective bargaining through acts of anti-union discrimination and interference with union activity. The DOL said that after the Interagency Labor Committee found sufficient and credible evidence supporting the petition’s allegations, the U.S. government submitted a request for Mexico to review the case. The Mexican government has 10 days to decide whether to conduct a review and 45 days to investigate the claims and present its findings.

Kentucky disaster-relief grant. The DOL’s Employee and Training Administration said it has awarded $1 million in grant funding to support disaster-relief jobs and employment and training services for Kentucky residents suffering from the aftermath of severe storms. Beginning Feb. 14, 2025, through March 7, 2025, a severe weather system generated heavy torrential rain, flash flooding, and landslides that damaged public infrastructure, utility distribution systems, and private property in Kentucky. This followed severe weather and multiple disasters in the state that led to widespread destruction and numerous fatalities in 2024 and 2025 that impeded recovery efforts. The Disaster Recovery National Dislocated Worker Grant allows the Kentucky Office of Employment and Training to provide residents with temporary jobs focused on cleanup and recovery efforts, as well as offer employment and training services to eligible participants in affected communities.

Kentucky dislocated worker grant. The DOL’s Employee and Training Administration announced a $2 million award to the Bluegrass Area Development District Inc. in Kentucky to support employment and training services for an estimated 1,750 people affected by layoffs at the Bluegrass Chemical Agent Destruction Pilot Plant and Yokohama Industries Americas Inc. Layoffs at suppliers and other local businesses are also anticipated because of these closures. The National Dislocated Worker Grant will allow the Bluegrass Area Development District to provide retraining and skills development services for dislocated workers seeking assistance in 17 counties.

Companies: Stage FX Inc.; James Thomas Productions LLC; Swensen’s Magic Markets LLC; Tubos de Acero de Mexico S.A.; Bluegrass Chemical Agent Destruction Pilot Plant; Yokohama Industries Americas Inc.

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