Why Is Fast-Food Chain Wendy’s Being Fined By The Government?

Fast-food burger chain Wendy’s (WEN) has found itself under fire with the U.S. Department of Labor’s Wage and Hourly Division. The restaurant is being investigated by the agency for its child labor practices and has been imposed fine of $157,114.

The investigation involves a Manna Inc. - franchise owner of 99 Wendy’s and Fazoli’s restaurants in nine states. The Department of Labor’s Wage and Hourly Division determined that the restaurant franchise owner violated the child labor requirements for its 14 and 15-year-old workers.

According to a statement by the Department of Labor’s Wage and Hourly Division, Manna allowed youth employees to work outside and for more hours than the child labor law allows. A total of 446 minors worked before 7 a.m. or after 7 p.m. on school nights, more than three hours on school days or more than eight hours on non-school days.

The Department of Labor’s Wage and Hourly Division claims that Manna violated the Fair Labor Standards Act at its restaurants in Colorado, Florida, Kansas, Kentucky, Minnesota, Missouri, Nebraska, Tennessee, and Wisconsin.

“Child labor laws exist to ensure that when young people work, the work does not jeopardize their health and well-being or educational opportunities,” Karen Garnett-Civils, Wage and Hour Division district director said in a statement. “We encourage all employers to review their employment obligations and to contact the Wage and Hour Division for compliance assistance.”

Shares of Wendy's stock were down 0.14% as of 10:50 a.m. EST on Tuesday.