Business & Tech

Regal Cinemas Inc. Fined For Violating Child Labor Laws

The company has agreed to pay $158,400 in civil money penalties.

A movie theatre company with an has been fined by the U.S. Department of Labor for multiple violations of youth employment provisions of the Fair Labor Standards Act (FLSA).

As part of a larger industry investigation, the Labor Department's Wage and Hour Division found that Knoxville, Tenn.-based Regal Cinemas, Inc., which operates Regal Cinemas, Edwards Theatres and United Artist Theatres, had "violated child labor laws by employing minors to load and operate trash compactors."

The company has agreed to pay $158,400 in civil penalties and and has also agreed to implement comprehensive internal compliance and training programs.

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"[In addition], Regal Cinemas is also showing a child labor public service announcement on workplace safety at all 458 of its digital cinema locations in 39 states," according to the U.S. Labor Department.

U.S. Labor Department spokesperson Scott Allen said that the investigators had performed random checks and while they had not visited every theatre, the agency was "convinced these violations are part of a systemic industry-wide problem."

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The Marcus Theatres and Wehrenberg movie theatre chains have also agreed to pay fines as part of a larger Labor Department investigation of the industry.

"The penalties imposed as a result of these violations should serve as a wake-up call to movie theatre owners and other employers," said Secretary of Labor Hilda L. Solis in a statement announcing the fines. "Businesses that employ minors are legally and ethically obligated to abide by child labor standards and ensure youth are protected on the job."

An Eagan Regal Cinemas 16 manager did not wish to comment and directed Eagan Patch to the corporate office. Dick Westerling, senior vice president of marketing and advertising for the Regal Entertainment Group, released this statement:

"The safety and well being of our personnel is of the utmost importance to Regal Entertainment Group. Our company aggressively works to educate our staff and management about compliance with applicable wage and hour laws. At no time were any Regal personnel required to perform any hazardous duties or in any way injured on the job. 

While Regal denied the allegations in the Department of Labor’s findings, through a collaborative effort between the DOL and Regal representatives, we were able to minimize the fines and mutually resolve the noted issues. In furtherance of Regal’s efforts to insure the safety of all minors in the workforce, Regal also agreed to show a child labor public service announcement in our theatres."

In 27 theatres across nine states, the FLSA has identified "17 hazardous occupations prohibited for workers under the age of 18, which include operating and unloading scrap paper balers and paper box compactors. Loading is permitted only if certain specific conditions are met," according to the U.S. Labor Department.

The FLSA also places restrictions on the hours and times employees under the age of 16 may work during the school year. Investigators found seven minors working in  two Minnesota Marcus-owned theatres (Oakdale and Rochester) who had worked beyond the hours permitted by law.

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