Investigation of Hellofresh by U.S. Department of Labor

By Paolo Laudani
(Reuters) – The U.S. Department of Labor (DOL) is investigating Hellofresh over allegations that migrant children were working at the meal-kit maker's cooking and packaging facility in Illinois as recently as this summer, according to ABC News.

The investigation also examines if Midway Staffing, the agency hiring employees at the facility, violated child labor rules.

The DOL confirmed there is an open investigation at the Hellofresh facility in Aurora, Illinois, and another involving Midway Staffing, without providing further details.

Shares of the German firm fell 9% at 1441 GMT.

A Hellofresh spokesperson stated that both Midway and Factor 75, Hellofresh's U.S. and Canada subsidiary, are part of the investigation. "To be clear, neither Hellofresh nor Factor have ever hired or employed the alleged underage workers. That has always been through Midway Staffing," she said.

The company emphasized, “As soon as we learned of these allegations, we immediately terminated the relationship.” They assert a zero-tolerance policy for child labor and have taken actions to prevent minors from working in or accessing their facilities.

The spokesperson could not comment on the exact timing of the contract termination due to the ongoing investigation.

Midway Staffing stated it is cooperating with the DOL. "Midway Staffing has provided the Department with all payroll, time, and personnel data it requested related to workers it placed at facilities operated by Hellofresh," they said.

Midway also denied any implication of its actions or practices causing child labor violations and asserted it does not knowingly hire anyone under 18 years of age.