US-based meat processor Smithfield Foods is to pay a $2m penalty to Minnesota authorities following an investigation that revealed it had employed children as young as 14 at its site in Saint James, Minnesota.

The Minnesota Department of Labor and Industry (DLI) found that between April 2021 and April 2023, the Farmland bacon and Farmer John sausages maker employed 11 minors aged 14 to 17 years, in violation of state labour laws.

The penalty is said to be "the largest” the state has ever "recovered in a child labour enforcement action", a statement from the DLI said.

According to the investigation, three of the children began working at Smithfield when they were just 14 years old.

Some were made to work beyond legally permitted hours and perform hazardous tasks such as operating power-driven machinery and working near chemicals, the department said.

As part of a consent order, Smithfield is also required to implement measures to prevent future violations. These include conducting industry outreach on child labour compliance and ensuring "contractually" that its labour staffing agencies and sanitation contractors also comply with local child labour laws.

The US law prohibits anyone under 18 years from working in meat processing plants due to the associated dangers.

In a statement, DLI commissioner Nicole Blissenbach said: “It is unacceptable for a company to employ minor children to perform hazardous work late at night.

“DLI's resolution with Smithfield sends a strong message to employers, including in the meat processing industry, that child labour violations will not be tolerated in Minnesota.”

Smithfield contested the allegations and denied that it “knowingly hired anyone under the age of 18 to work in our St. James facility.”

The company also claimed the minors had passed E-Verify checks using false identification and different names.

Smithfield added: “We have not admitted liability as part of this settlement; however, in the interest of preventing the distraction of prolonged litigation, we have agreed to settle this matter.”

In September last year, Tony Downs Food Company, another Minnesota-based meat processor, was slapped with a fine of $300,000 and required to implement a three-year compliance programme after an investigation revealed it had illegally employed minors at a meat processing facility. 

In October, the US government initiated an investigation into claims of US meatpacker Tyson Foods employing children as young as 11 at its facilities.

The US Department of Labor (DoL) searched the Jimmy Dean and Hillshire Farm brands owner’s Green Forest and Rogers plants in Arkansas in September after it received two separate anonymous tip-offs over the summer that minors were possibly working at the meat producer’s factories.

The investigation is looking into whether Tyson has violated the country’s Fair Labor Standards Act.