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Stella’s Ice Cream Faces $321,000 in Penalties for Child Labor Violations

by Alice

Stella’s Ice Cream, a popular company based in Nampa, Idaho, is facing over $321,000 in civil penalties after an investigation revealed child labor violations at several of its retail locations. The U.S. Department of Labor’s findings indicate that the company exposed minors to hazardous tasks and allowed them to work beyond legally permitted hours.

The company, which has stores in Boise, Eagle, Nampa, and Caldwell, was found to have employed workers between the ages of 14 and 15 in unsafe conditions. Federal regulations prohibit minors from operating certain equipment, and an investigation by the Department of Labor’s Wage and Hour Division revealed that children were assigned tasks such as operating industrial mixers, driving a delivery van, and working past 10:30 p.m., in violation of the law.

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In response, Stella’s founder and CEO, Chad Hartley, acknowledged the findings but criticized the penalties as “grossly excessive.” He stated that the company had taken swift action to address the issues after they were brought to their attention. “We accept full responsibility for addressing the concerns identified, but we strongly disagree with the final ruling,” Hartley said, adding that the company has been in compliance with federal regulations since the discrepancies were addressed.

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The investigation also revealed that the company had employees working past the legal curfew for minors. Federal regulations allow 14- and 15-year-olds to work only until 7 p.m., except during the summer months, when the limit is extended to 9 p.m. In addition, these young workers are restricted to a maximum of 18 hours per week during the school year.

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The company’s statement pointed out that the equipment used, such as a “KitchenAid-style mixer” and an oven, was common in household kitchens and typically regarded as safe. “It is difficult to reconcile that teenagers can legally operate motor vehicles on public roads yet are prohibited from using a household-style kitchen mixer,” the statement said.

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Another violation uncovered during the investigation involved the sharing of tips among managers and supervisors, which is prohibited under federal law. This led to the recovery of $79,463 in back wages and liquidated damages for 208 affected workers.

Despite the penalties, Hartley defended the company’s approach to tipping, saying that it believed in fairness and equality in the workplace. “Unfortunately, the federal government does not agree with this approach,” he said. “We believe greater transparency and fairness in regulatory enforcement are essential to supporting small businesses.”

In total, the Department of Labor found over 4,000 cases of child labor violations nationwide in fiscal year 2024, with penalties totaling more than $15 million—a significant increase from the previous year.

Stella’s Ice Cream continues to dispute the penalties, calling them an undue burden on small businesses, but has vowed to use the experience as an opportunity to help other business owners navigate the complexities of labor regulations.

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