BOISE, Idaho — Stella’s Ice Cream has been hit with a hefty fine of $321,015 following an investigation by the U.S. Department of Labor that revealed violations of child labor laws and improper tip-sharing practices at its locations in Boise and Kuna. The company has also been required to pay nearly $80,000 in back wages and liquidated damages to 208 affected workers.
The investigation uncovered several infractions, including underage employees working beyond legally allowed hours and performing tasks prohibited by federal labor laws. Additionally, the investigation found that tips were being distributed to managers and supervisors, a practice that violates the Fair Labor Standards Act.
In response, Chad Hartley, CEO of Stella’s Ice Cream, told Idaho News 6 that the violations were due to a lack of awareness about specific federal child labor regulations, which differ from Idaho’s state laws. “While this lack of knowledge was unintentional, we fully recognize that it does not excuse the oversight,” Hartley said.
Investigation and Violations
According to Katherine Walum from the Department of Labor, the investigation covered four Stella’s Ice Cream locations. The department discovered that underage workers had been assigned to use hazardous kitchen equipment, including industrial mixers, and were also tasked with operating vehicles that exceeded weight limits—both activities that federal law restricts for minors.
“The department wants minors to have meaningful work experiences, but we also enforce strict rules regarding the hours they can work and the equipment they can use,” Walum stated. “We take child labor very seriously.”
Tip Distribution Controversy
Another significant violation involved the sharing of tips with managers and supervisors, a practice that contravenes the Fair Labor Standards Act. As a result, 208 employees were affected, with the company required to pay nearly $80,000 in back wages and damages.
In his statement, Hartley denied accusations that the company had “stolen” tips from workers, instead framing the tip pool as an effort to ensure fairness among staff. “It was our standard practice to pool tips among all employees on shift, regardless of their position,” he explained.
Changes Implemented by Stella’s Ice Cream
Despite the company’s claim of unintentional violations, Walum emphasized that the Department of Labor had classified the violations as willful, meaning they involved “reckless disregard” for the law.
In response to the findings, Hartley said the company had already implemented significant changes, including raising the minimum hiring age to 16 and discontinuing the practice of allowing minors to operate restricted equipment. Stella’s has also transitioned to using lower-powered equipment in compliance with federal regulations.
“We’ve taken steps to correct these issues and ensure that our practices align with federal labor laws moving forward,” Hartley assured.
The Department of Labor has made it clear that it will continue to enforce child labor protections rigorously and hold employers accountable for violations.
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