Commercial Truck Insurance in Morristown, TN

Tuff Torq Corp. to pay $296K civil penalty for employing children to operate dangerous machinery, requiring them to work more hours than the law allows

GREENVILLE, TN – The U.S. Department of Labor’s Office of the Solicitor has obtained a federal consent judgment that requires a Morristown manufacturer of outdoor power equipment components for major companies including John Deere, Toro and Yamaha to stop employing children illegally and to follow federal child labor laws in the future.

The judgment, which comes after the department’s Wage and Hour Division identified several children employed in dangerous jobs, includes a $296,951 civil money penalty. The employer must also set aside $1.5 million as disgorgement of 30 days’ profits related to its use of child labor. The proceeds paid by Tuff Torq will be used for the benefit of the children employed illegally.

Entered in the U.S. District Court for the Eastern District of Tennessee at Greenville on March 22, 2024, the action addressed Tuff Torq Corp.’s illegal employment of children. To date, the department has determined that Tuff Torq subjected 10 children to oppressive child labor.

Division investigators began its probe months ago but obtained clear evidence of the unlawful conduct on Jan. 23, 2024, when they returned to the Tuff Torq facility and observed a child operating a power-driven hoisting apparatus, an occupation prohibited for workers under the age of 18. As a result, the department objected to the shipment of goods from the Morristown facility, citing the Fair Labor Standards Act’s “hot goods” provision, which prevents employers from shipping goods produced by oppressive child labor.

“Even one child working in a dangerous environment is too many,” said Wage and Hour Division Administrator Jessica Looman. “Over the past year, we have seen an alarming increase in child labor violations, and these violations put children in harm’s way. With this agreement, we are ensuring Tuff Torq takes immediate and significant steps to stop the illegal employment of children. When employers fail to meet their obligations, we will act swiftly to hold them accountable and protect children.”

In addition to an agreement to comply with the child labor provisions of the FLSA, payment of the full civil money penalty, and disgorgement of profits, Tuff Torq has agreed, among other provisions, to do the following:

“This consent decree holds Tuff Torq accountable while also discouraging future violations, focusing on the supply chain, and striving to make the victims whole,” said Solicitor of Labor Seema Nanda. “This agreement puts in practice what we have long been saying. The department will not tolerate companies profiting on the backs of children employed unlawfully in dangerous occupations. Tuff Torq has agreed to disgorge profits, which will go to the benefit of the children. This sends a clear message: putting children in harm’s way in the workplace is not only illegal, but also comes with significant financial consequences.”

In fiscal year 2023, the department investigated 955 cases with child labor violations, involving 5,792 children nationwide, including 502 children employed in violation of hazardous occupation standards. The department addressed those violations by assessing employers more than $8 million in civil money penalties.

Learn more about the Wage and Hour Division, including child labor regulations on dangerous jobs that are prohibited for workers under age 18.

The division offers confidential compliance assistance to anyone – regardless of where they are from – with questions about their wages or how to stay in compliance with the law by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The department can speak with callers in more than 200 languages.

A Tennessee manufacturer has been fined nearly $300,000 for employing children as young as 14 to operate “dangerous machinery” and requiring them to work more hours than the law allows, federal regulators said.

Tuff Torq Corp., which manufactures outdoor-power-equipment components for brands that include John Deere, Toro and Yamaha, must pay a civil penalty of $296,951 and follow federal child labor laws in the future, the Labor Department said in a statement on Monday.

The company must also set aside $1.5 million in profits related to the employment of the 10 children who were found to be working at its factory in Morristown, Tenn. That money, the Labor Department said, “will be used for the benefit of the children employed illegally.” A department spokesman said the children were as young as 14.

The judgment was entered in U.S. District Court for the Eastern District of Tennessee after the Labor Department’s wage and hour division found that Tuff Torq had employed several children to perform dangerous jobs.

Officials began their investigation months ago and obtained “clear evidence” of labor violations in January, when they observed a child operating a power-driven hoisting apparatus, which is prohibited for workers under the age of 18.

“Even one child working in a dangerous environment is too many,” Jessica Looman, the administrator of the wage and hour division, said in the statement. “Over the past year, we have seen an alarming increase in child labor violations, and these violations put children in harm’s way.”

“With this agreement,” she added, “we are ensuring Tuff Torq takes immediate and significant steps to stop the illegal employment of children.”

Tuff Torq said in a statement that it “did not directly employ the individuals,” referring to the underage workers, who it said had been hired by a “temporary work force staffing agency,” which it did not identify.

“Tuff Torq is dedicated to ensuring that their products and services are produced under ethical conditions, with a strong emphasis on fair labor practices, and Tuff Torq is further strengthening our relevant training and compliance programs,” the manufacturer’s statement said. “We are also actively engaging with our suppliers to reinforce our expectations regarding ethical labor practices.”

In addition to the financial penalties, Tuff Torq agreed to certain provisions. They include working with a community-based organization to provide regular training to employees, managers and contractors; establishing an anonymous tip line for reporting child labor and other suspected labor violations; and allowing unannounced and warrantless searches of its factory for three years.

The enforcement action comes as child labor violations have increased across the country, labor officials said.

In fiscal year 2023, the Labor Department said, the agency investigated 955 cases of child labor violations, involving 5,792 children nationwide, including 502 children employed in violation of hazardous occupation standards.

In February, the Labor Department said that a Tennessee company had employed at least 24 children between the ages of 13 and 17 to work overnight shifts cleaning dangerous equipment at slaughterhouses in Virginia and Iowa. The department opened its investigation after The New York Times Magazine reported last year that the company, Fayette Janitorial Service L.L.C., had hired migrant children to work the overnight cleaning shift at a Perdue Farms plant on the Eastern Shore of Virginia.

And last year, Packers Sanitation Services Inc. paid a $1.5 million penalty after a Labor Department investigation found that children between the ages of 13 and 17 had worked overnight shifts at 13 meat-processing plants in eight states, mostly in the South and the Midwest.

The U.S. Department of Labor’s Office of the Solicitor is cracking down on Morristown manufacturer Tuff Torq Corporation for illegally employing children as young as 14-years-old.

Tuff Torq will pay a $296,951 penalty after the department's Wage and Hour Division confirmed several children worked for the outdoor power equipment parts manufacturer. Additionally, Tuff Torq will set aside $1.5 million from profits made during the kids' employment, which will go to the kids illegally employed.

The department received the federal consent judgement to hold Tuff Torq Corporation accountable and make sure the company complies with federal child labor laws.

“Even one child working in a dangerous environment is too many,” Wage and Hour Division administrator Jessica Looman said in a press release. “Over the past year, we have seen an alarming increase in child labor violations, and these violations put children in harm’s way. With this agreement, we are ensuring Tuff Torq takes immediate and significant steps to stop the illegal employment of children. When employers fail to meet their obligations, we will act swiftly to hold them accountable and protect children.”

How many kids did Tuff Torq Corporation employ illegally?

The department determined that 10 kids illegally worked for Tuff Torq under opressive child labor conditions.

The Wage and Hour Division began probing in 2023, but received proof of the unlawful work Jan. 23, 2024. On that day, investigators witnessed a child operating a "power-driven hoisting apparatus" like a forklift. Workers under 18 are prohibited from operating this type of machinery.

The department filed the action against Tuff Torq Corporation March 22, 2024, in the U.S. District Court for the Eastern District of Tennessee at Greeneville.

What does Tuff Torq Corporation say about the Department of Labor findings?

Yanmar Group, who owns Tuff Torq Corporation, emailed a statement to Knox News.

Yanmar states that "Tuff Torq did not directly hire and employ the individuals" and that the minors were provided through a "temporary workforce staffing agency."

Yanmar adds the employees used fake idenentification and names during the hiring process through the agency.

"Tuff Torq is dedicated to ensuring that their products and services are produced under ethical conditions, with a strong emphasis on fair labor practices, and Tuff Torq is further strengthening our relevant training and compliance programs," Yanmar spokesperson Ryan Pott said in the email. "We are also actively engaging with our suppliers to reinforce our expectations regarding ethical labor practices and collaborate with them on implementing our updated policies."

What else will Tuff Torq Corporation have to do under the judgement?

Tuff Torq Corporation will stop employing children and comply with federal child labor laws moving forward. In addition to the penalty and payments, Tuff Torq Corporation agrees to do the following:

What does Tuff Torq Corporation work in?

The manufacturer supplies power equipment parts for companies like John Deere, Toro and Yamaha. Tuff Torq Corporation invests in new technology, tests products and provides electric alternatives.

Tuff Torq Corporation operates at 5943 Commerce Blvd. in Morristown.

What are Tennessee's child labor laws?

Tennessee's Child Labor Act protects minors between the ages of 14 and 17 as they enter into the workforce. Protections under this act include hours working, types of jobs and exceptions for Work Based Learning Programs.

A few off-limits jobs and hazardous environments for workers under 18 include manufacturing establishments, meat packing, demolition and operation of power-driven hoisting apparatuses.

The Child Labor Act includes rules for hours minors can work throughout the week. Kids 14 and 15 can only work three hours a day during school days after 7 a.m. but before 7 p.m. for a total of 18 hours a week. When school isn't in session, minors can work up to eight hours a day between 6 a.m.-9 p.m. for up to 40 hours a week.

For kids 16 and 17, the rules are a little more flexibile as long as minors aren't working during classes and only between 6 a.m.-10 p.m. They can get a parental slip signed to work up until midnight, but only for a three days a week between Sunday and Thursday.

Minors also get a mandatory 30 minute break for every six hours of work in a day.

How many child labor violations has the U.S. Department of Labor investigated?

The department investigated 955 cases with child labor violations in 2023. This included 5,792 children nationwide with 502 of those kids employed in either violation or hazardous conditions.

As a result, the department assessed employers for more than $8 million in civil money penalties.

The U.S. Department of Labor said the Tuff Torq Corporation put at least ten minors to work at a manufacturing facility in Morristown.

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MORRISTOWN, Tenn. — The U.S. Department of Labor said a Morristown company will need to pay around $300,000 in civil money penalties and put aside $1.5 million to pay back any profits it made after employing ten minors, all under 18 years old.

The department said in a lawsuit filed on March 22 that the Tuff Torq Corporation employed the minors at a manufacturing facility. It also said, "at least one minor was observed operating a power-driven hoisting apparatus, an occupation that has been deemed particularly hazardous for minors."

It said that as a result, the company's goods were made with "unlawful and oppressive child labor," and so the company was prohibited from shipping the goods. The Tuff Torq Corporation makes a variety of products used inside equipment that clears snow, helps plow fields and finishes landscaping projects, according to its website.

The company will need to give a list of all entities it ships goods to for the department's Wage and Hour Division, as well as discipline management personnel responsible for child labor violations, including termination or suspension.

"This includes any management personnel who are or become aware of child labor violations and fail to report such violations," a consent order said.

The company will also need to post signs at its facilities telling people they need to be at least 18 years old to enter and work in the building. It would also need to hire a third-party consultant or compliance specialist who has experience in federal child labor provisions. The specialist would then make sure employees are informed about their rights, and make sure the company stays in compliance with federal child labor laws.

"Prohibited retaliatory action includes, but is not limited to, reporting or threatening to report, directly or indirectly, any such individual to law enforcement agencies based on the person’s actual or perceived immigration status or initiating an internal I-9 audit or other reverification process for the purpose of retaliating against any worker or chilling that worker’s rights under the FLSA or other federal statute," the consent order said.

An attorney for the company said the minors were temporary workers and did not directly hire and employ the workers. The company also said an investigation revealed the temporary workers used fake names and credentials in the hiring process.

The company also provided a comment about the consent order and lawsuit, available below.

"On March 22, 2024, Tuff Torq entered into a consent decree with the Department of Labor (DOL) acknowledging recent violations of the Fair Labor Standards Act (FLSA).

Tuff Torq is dedicated to ensuring that their products and services are produced under ethical conditions, with a strong emphasis on fair labor practices, and Tuff Torq is further strengthening our relevant training and compliance programs.

We are also actively engaging with our suppliers to reinforce our expectations regarding ethical labor practices and collaborate with them on implementing our updated policies."

Immigrant children as young as 14 were found working illegally amid dangerous heavy equipment at a Tennessee firm that makes parts for lawn mowers sold by John Deere and other companies, according to Labor Department officials.

The company, Tuff Torq, was fined nearly $300,000 for hiring 10 children. As part of a consent agreement with the federal government, the company is also required to set aside $1.5 million to help the children who were illegally employed. Ryan Pott, general counsel for Tuff Torq’s majority owner, the Japanese firm Yanmar, acknowledged the violations to NBC News.

“The department will not tolerate companies profiting on the backs of children employed unlawfully in dangerous occupations,” said Seema Nanda, the department’s chief legal officer, whose office obtained the consent judgment against Tuff Torq. “Tuff Torq has agreed to disgorge profits, which will go to the benefit of the children. This sends a clear message: putting children in harm’s way in the workplace is not only illegal, but also comes with significant financial consequences.”

The Labor Department did not specify what work the children were doing. But Labor official Juan Coria said what his investigative team found in Tuff Torq’s “very busy” Morristown manufacturing plant was “astonishing.”

Coria, southeast regional administrator for the Labor Department’s Wage and Hour Division, described an environment that he says caused anxiety among his investigators who witnessed children as young as 14 working late at night at the 24-hour manufacturing facility amid power-driven equipment that was being moved around the plant.

Pott, the general counsel for Tuff Torq’s majority owner, said the child workers were temporary and were not hired directly by Tuff Torq. He said they used fake names and false credentials to obtain jobs through a temporary staffing agency, and said Tuff Torq is “transitioning” away from doing business with the staffing company.

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“Tuff Torq is dedicated to ensuring that their products and services are produced under ethical conditions, with a strong emphasis on fair labor practices, and Tuff Torq is further strengthening our relevant training and compliance programs,” said Pott. “We are also actively engaging with our suppliers to reinforce our expectations regarding ethical labor practices and collaborate with them on implementing our updated policies.”

According to the Labor Department, within 30 days Tuff Torq must also hang signs at every entrance to the plant that say, “Stop! You must be at least 18 years of age to enter and work in this building.”

Nanda said through such agreements the agency is sending a message to the company and its whole community of suppliers and contractors. “They will look at their supply chain meaning their contractors, their staffing agencies, and make sure that they are doing these things as well.”

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John Deere did not respond to a request for comment.

Labor officials say their investigation into the company began almost a year ago, in spring 2023, and investigators visited the facility multiple times. Officials declined to say what sparked the investigation.

The Labor Department has prioritized child labor enforcement since last spring amid a 152% increase in children found to be illegally employed since 2018, according to department figures.

Laura Strickler

Laura Strickler is a senior investigative producer and reporter for NBC News. She is based in Washington.