California food delivery start-up slammed with $140,000 fine for violating child labor laws by employing underage drivers

• Locale, founded in 2020, began making food deliveries at the beginning of the pandemic.
• An investigation by the Department of Labor found the company in violation of federal child labor laws prohibiting teen delivery drivers.

Locale — a Cupertino, California-based food delivery start-up — has been fined nearly $140,000 for violating child labor laws after employing dozens of teenage drivers to deliver food.

In a Wednesday news release, the US Department of Labor said Locale hired 78 teenagers as drivers to perform time-sensitive food deliveries between July 2020 and July 2021.

According to federal child labor laws, 16-year-olds are banned from driving jobs while 17-year-olds are not allowed to perform time-sensitive deliveries.

Although the department said it is not aware of any accidents involving the young drivers, Wage and Hour District Director Susana Blanco emphasized the safety risk of asking them to make deliveries.

"There are limits on what jobs young workers can perform," Blanco said in a statement. "In most cases, child labor laws prohibit minors from driving motorized vehicles as part of their employment, and specifically when it comes to making deliveries."

The department says investigators also found the company misclassified the young drivers as independent contractors and, in turn, "deprived these workers of their rights, including minimum wage and overtime protections, and other benefits."

Locale co-founder Chris Clark said the company's start during the pandemic may have contributed to its hiring practices.

"When we first started during the pandemic, we were entirely bootstrapped and still working other full-time jobs, while doing our best to keep up with the growth of Locale," Clark said in a statement. "Our friends, family, and other members of our community jumped in to help fulfill orders."

Founded in 2020, the company delivers from more than 100 restaurants and specialty item vendors across California and offers nationwide shipping for $5.

In June, co-founder Jonathan Friedland told Mercury News about Locale's pledge to pay drivers 150% of what they may make at food delivery giant DoorDash, with open positions starting at a wage of $25 an hour.

The Department of Labor says it's seen an increase in child labor violations since 2015. In 2021, employers racked up $3.4 million in penalties.

"Employers who hire young workers must know and abide by federal laws that govern their employment," Blanco said. "These obligations include ensuring minors are not employed in occupations that risk their safety, health and well-being."