3: Part II: Michigan-based Forge Industrial Staffing 'crushed under the weight' of federal child labor probe

The American Legal Record Podcast

On this episode, John O’Brien and Jonathan Bilyck of The Record legal publications join us for a follow up on the case of the Department of Labor’s investigation into Grand Rapids, Michigan-based company, Forge Industrial Staffing.

Our first episode on this case can be found here: https://podcasts.apple.com/us/podcast/michigan-based-forge-industrial-staffing-crushed-under/id1718131422?i=1000637262593

Michigan company Forge Industrial Staffing is “in the crosshairs of a child labor investigation” and hopes “a federal court will help protect its reputation as clients flee, while noting a ‘whistleblower’ who kickstarted the probe lied about her age at least once,” reported Legal Newsline.

Following is a brief summary of this episode:

• Subpoena for Client List: The Department of Labor issued a subpoena to Forge Industrial Staffing, demanding a list of all 600 clients for potential spot checks. Forge is mostly compliant but resists sharing the full client list, fearing negative business implications and potential liability issues for their clients.

• Court Proceedings and Legal Challenges: The episode covers a hearing on December 5th, where a magistrate judge granted the federal request for Forge's client information. The labor department's investigation has expanded from potential child labor violations to include wage and hour violations, such as overtime pay and minimum wage issues.

• Impact on Forge Industrial Staffing: The case has already had significant financial impacts on Forge, with the loss of 17 clients and a reduction of $9.5 million in annual revenue. The company argues that complying with the subpoena and revealing their client list could further harm their business.

• Legal and Ethical Dilemmas: The podcast delves into the complexities of the case, including the challenges businesses face in verifying employee eligibility and the legal implications of administrative investigations. It also discusses the role of the acting labor secretary and the broader implications of the case for employers and staffing firms.