Angry US McDonald's Shareholders Demand Investigation into Teen Labor Law Violations

Prohibition of Labor After 7 PM for Minors Aged 14 and Over in the US
McDonald's Over 2,300 Labor Violations in More Than 10 Years

U.S. fast-food chain McDonald's faced a shareholder uprising after allegedly neglecting violations of youth labor laws in its stores, the Washington Post (WP) reported on the 9th (local time).

According to the report, McDonald's shareholders sent a letter to the company's board of directors on the 7th urging the adoption of a zero-tolerance policy toward labor law violations involving teenage workers at franchise locations across the United States. They also demanded a human rights audit conducted by an independent third party separate from the company.

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Recently, the U.S. fast-food industry, represented by McDonald's, has seen social issues arise due to labor shortages following the pandemic, including illegal night and long-hour shifts assigned to teenage workers and exposure to dangerous kitchen equipment. U.S. federal law prohibits 14- to 15-year-olds from working during school hours as well as after 7 p.m. on weekdays, and limits weekday working hours to no more than three hours.

According to federal data compiled by WP in January, over three-quarters of youth labor violations in the first nine months of 2023 occurred in the food service sector, with most involving franchise operators. In particular, McDonald's recorded an average of 15 violations per 100 stores since 2020, making it one of the brands with the highest violation rates. WP reported that since 2013, McDonald's has faced allegations of more than 2,300 youth labor law violations.

Miles White, McDonald's newly appointed lead independent director, noted, "Shareholders are concerned that the McDonald's board is not adequately overseeing the company's employment practices and is failing to mitigate risks to the company's reputation."

McDonald's has not responded to requests for comment regarding the shareholder letter. However, the letter is backed by institutional investors managing assets totaling approximately $2.2 trillion, including the SOC Investment Group, which oversees U.S. union pension funds, making it difficult for the company to remain silent. Earlier this year, McDonald's argued that "current youth labor laws do not reflect the conditions and experiences of most teenagers seeking age-appropriate roles and meaningful jobs in their communities."

Meanwhile, on the New York Stock Exchange that day, McDonald's shares closed at $267.95, down 0.2% from the previous session. The stock has fallen 9% so far this year.