Capitol Notebook: Cleaning company fined over working children overnight

DES MOINES — A cleaning contractor that employed children on overnight shifts in food processing plants in multiple states, including in Iowa, has agreed to pay a $400,000 federal fine, the U.S. Department of Labor announced Thursday.

The Tennessee-based cleaning contractor QSI LLC will pay the civil fine, monitor and audit policies to prevent a repeat of children working dangerous jobs, and operate a toll-free number for individuals to report concerns about illegal child labor, the federal labor department said in a news release.

A federal investigation found QSI employed children on overnight shifts at 13 meat and poultry processing facilities from 2021 through 2024 in violation of the Fair Labor Standards Act.

The violations were discovered in Iowa, Alabama, California, Delaware, Indiana, Ohio, Tennessee and Virginia, according to the department.

“The Department of Labor is determined to stop our nation’s children from being endangered in jobs for which they should never be hired and to leverage our enforcement work to affect industries,” Solicitor of Labor Seema Nanda said in a statement. “With this agreement, QSI LLC is taking responsibility for its historical violations and agreeing to strong compliance practices at all of its work locations.”

The department has investigated various contractors that provide sanitation services at meatpacking facilities across the country since 2022, the news release said.

Two similar investigations in Iowa led the federal government to obtain consent judgments against Qvest LLC and Fayette Janitorial Service LLC. Both companies employed children illegally.

Iowa part of $80M Cash App settlement

Iowa is one of 48 states that are part of an $80 million settlement with the company that owns the mobile payment Cash App over violations of anti-money laundering laws.

Block Inc., which owns Cash App, has agreed to pay an $80 million penalty to state agencies for violations of the federal Bank Secrecy Act. The Iowa Division of Banking is one of the state agencies involved in the legal action against Block.

Government regulators found that Block was not in compliance with certain internal monitoring requirements, which created the potential its services could be used to support money laundering, terrorism financing or other illegal activities, according to an Iowa Division of Banking news release.

“The Iowa Division of Banking is committed to working with our state partners to ensure that companies operating in Iowa follow our rules and regulations,” Iowa Banking Superintendent James Johnson said in a statement. “The Iowa Division of Banking appreciates the ongoing cooperation of Block throughout this investigation and settlement process.”

Gazette-Lee Des Moines Bureau

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