US investigates Hellofresh, Midway Staffing over child labor allegations, ABC By Reuters report

Written by Paolo Laudani

(Reuters) – The U.S. Department of Labor (DOL) is investigating Hellofresh over allegations that migrant children worked at the manufacturer’s cooking and packing facility in Illinois as recently as this summer, ABC News reported on Friday evening.

The department is also investigating whether Midway Staffing, which is the agency that hires workers to work at the facility, is violating child labor laws, the report said.

The DOL told Reuters on Monday that there was an open investigation into the Hellofresh facility in Aurora, Illinois, as well as an open investigation into Midway Staffing, without providing further details.

Shares of the German company were down 9% at 1441 GMT.

A spokesperson for Hellofresh told Reuters that both Midway and Factor 75, Hellofresh’s US and Canadian subsidiary, were part of the investigation. “To be clear, Hellofresh or Factor have never hired or employed those who are said to be under-age. That has always been done by Midway Staffing,” he said.

“When we heard about these allegations, we immediately terminated the relationship,” said the company’s statement.

“We have zero tolerance for child labor, and we have taken steps to ensure that no children work or have access to our facilities,” he added.

A company spokesperson could not comment on when the contract was terminated due to the ongoing investigation.

Midway told Reuters it is cooperating with the DOL in its ongoing investigation.

“Midway Staffing has provided the Department with all salary, time and employee information requested by the Department regarding the employees it has placed at certain Illinois facilities operated by Hellofresh,” it said.

Midway also denied that its actions or practices contributed to or caused any allegations of child labor violations and added that it refuses to knowingly hire anyone who is not at least 18 years old.