Child labor protections in the U.S. are facing unprecedented rollbacks at a rate that hasn’t been seen in decades. In 2022 and 2023, Arkansas, Iowa, New Hampshire, and New Jersey enacted laws that weaken safeguards for young workers. At least eight more states are threatening similar measures. Most recently, Missouri is eyeing a bill to loosen restrictions for 14- and 15-year-olds, while the Alabama Policy Institute is pushing for the dismantling of child labor laws as a solution for the state’s labor shortage.

Against this backdrop, a coalition of powerful investment managers and public treasurers, with assets invested in McDonald’s, is demanding that the company take stronger measures to address child labor violations at its franchises. In letters sent to the boards of McDonald’s and Wendy’s, these shareholders urged the adoption of a zero-tolerance policy for child labor and the conduction of third-party human rights risk assessments. This move follows a Washington Post investigation that highlighted McDonald’s and Wendy’s as having the highest numbers of child labor violations per store in the fast-food industry since 2020. McDonald’s alone has been cited for over 2,300 violations since 2013.

Stated in the letter to McDonald’s incoming lead independent director, Miles White:

“We are concerned that the McDonald’s Board is failing to appropriately oversee the Company’s employment practices and is failing to mitigate risks to the Company’s reputation.” 

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