S 5414: Stop Child Labor Act

S 5414 in plain English: This bill would strengthen federal child labor laws by increasing civil penalties for violations, adding new remedies such as compensatory and punitive damages, and funding enforcement efforts. It raises the range of fines employers face for illegally employing minors and provides $3,000,000 for enforcement in fiscal year 2027.

Stated purpose

This bill aims to strengthen enforcement of existing child labor laws by increasing financial and criminal penalties for violations, and to help employers understand and follow those laws through grants and a new advisory committee.

Key points

• Raises civil penalties for child labor violations to between $5,000 and $132,270 per violation, up from $11,000 flat
• Increases penalties for willful or repeated violations to between $25,000 and $601,150, up from $50,000
• Allows workers to seek compensatory and punitive damages up to $250,000 per employee for child labor violations
• Adds criminal fines up to $50,000 or imprisonment up to 1 year for certain violations
• Appropriates $3,000,000 for fiscal year 2027 to carry out enforcement

Arguments supporters make

• Current penalties are too low to deter large companies from cutting corners, and sharply higher fines and criminal consequences will make employers take child labor rules seriously.
• Giving harmed children and their families a direct legal path to sue for damages puts real accountability on employers beyond what federal regulators alone can enforce.
• The grant program helps well-meaning employers learn the rules and avoid accidental violations, balancing tougher penalties with practical support.

Arguments opponents make

• Higher penalties and new litigation exposure may discourage small and mid-size businesses from hiring young workers for lawful part-time or after-school jobs, reducing opportunities for teens.
• Adding a new federal advisory committee and grant program grows government bureaucracy and spending without clear evidence that existing enforcement agencies lack the tools they need.
• Allowing private lawsuits to run parallel to federal enforcement could create conflicting outcomes and encourage opportunistic litigation against employers who made honest mistakes rather than willful ones.

Tradeoffs

Stronger penalties and private lawsuits increase deterrence but may also raise legal and financial risks for employers who hire young workers lawfully, potentially reducing teen employment opportunities. The bill funds employer education to offset this, but that requires new federal spending and administrative infrastructure.

Current status in Congress: In committee.

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