Congress toughens child labor penalties and extends liability to successor companies
S. 4817 — CHILD Labor Act · Filed by Patty Murray (D-WA) · 10 cosponsors · Introduced Jun 17, 2026 · Referred to committee
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What it does
This bill strengthens federal child labor protections by imposing steep penalties on employers who violate child labor laws, expanding liability to successor companies that inherit operations from violators, and requiring federal contractors to certify they do not employ children under 16 or use oppressive child labor for ages 16–17. It also creates new enforcement tools (stop-work orders, tagging of goods), raises civil and criminal penalties significantly, extends the statute of limitations to 10 years, and mandates training and reporting on child labor violations.
Why we flagged it
The bill's core function is to expand and toughen enforcement of existing child labor prohibitions under the Fair Labor Standards Act, primarily through higher penalties, extended liability, new enforcement tools, and federal contractor requirements. It is not a new substantive prohibition but a reinforcement and expansion of existing law.
What the text implies
- Successor-in-interest liability may create unintended consequences for legitimate business acquisitions and restructurings; companies acquiring operations may face joint liability for historical violations they did not commit, potentially chilling M&A activity in certain sectors.
- Stop-work orders without geographic limitation (applying to all worksites of a violator, not just those involved in the violation) may halt lawful operations and harm innocent workers, though the bill requires compensation for lost wages.
The full analysis lists 5 implications of this text.
Who stands to gain
plaintiff employment attorneys; labor advocacy organizations; compliance consulting firms