Wisconsin demands $1M from Burger King franchisee over 1,600 alleged child labor, wage violations

Wisconsin officials are seeking more than $1 million from a Burger King franchise operator after determining the company committed more than 1,600 child labor and wage violations affecting hundreds of minors across the state.

The Wisconsin Department of Workforce Development (DWD) said Cave Enterprises Operations LLC, an Illinois-based company that operates 105 Burger King franchises in Wisconsin, committed at least 1,656 violations of state child labor and wage payment laws during a two-year period ending in January 2025.

State officials described the case as the "largest determination of child labor and wage payment violations in modern Wisconsin history."

According to DWD, the violations affected more than 600 children. The agency found that 593 employees ages 14 and 15 were allowed to begin work without the required child labor permits, 627 minor employees worked shifts of six hours or more without legally required meal breaks, and hundreds of minors under age 16 worked outside permitted hours or exceeded limits for school-age workers.

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Gov. Tony Evers said the enforcement action reflects the state’s responsibility to protect minors in the workforce.

"Here in Wisconsin, we have a proud history of making sure workers are treated with dignity and respect, and that’s especially true when it comes to our kids," Evers said. "We have a responsibility to make sure kids who are working are protected from exploitation, predatory employer practices, and being subjected to hazardous or illegal working conditions."

Evers, a Democrat, criticized Republican lawmakers, arguing they weakened child labor protections in the state, while saying his administration is committed to holding employers accountable.

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DWD’s Equal Rights Division opened its investigation after reviewing department records that showed 33 separate child labor and wage payment complaints against individual Cave Enterprises franchises between 2020 and 2023. The agency reviewed employment records related to minors from Jan. 1, 2023, through Jan. 25, 2025, before issuing a formal determination letter.

Under the determination, Cave Enterprises must pay $237,437.29 in unpaid regular wages, overtime wages and penalty wages directly to affected employees. DWD said workers are also entitled to liquidated damages of up to 200% of lost wages under state law.

In addition to wages owed to employees, DWD is seeking civil penalties of up to $828,000 — calculated at $500 per violation — which would bring the company’s total potential exposure to more than $1 million.

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State officials said the elevated penalty reflects the pervasive nature of the violations across multiple franchise locations, the large number of minors affected, violations of multiple statutory provisions, and the company’s prior enforcement history involving child labor and wage issues at more than a dozen locations.

DWD said it has offered to resolve the matter without court action if Cave Enterprises pays both the wages owed to workers and the civil penalty within 20 days of receiving the determination letters. The penalty determination letter will be issued separately from the wage determination.

If Cave Enterprises fails to make timely payments, DWD said it will pursue enforcement through the Wisconsin Department of Justice, and the final penalty amount would be determined by a court, should a ruling go against the company.

State officials also ordered Cave Enterprises to immediately come into compliance with Wisconsin’s Employment of Minors laws and related regulations, warning the company could face additional penalties for any future violations.

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Cave Enterprises Operations LLC did not immediately respond to FOX Business’ request for comment.