NAMPA, Idaho — The U.S. Department of Labor has fined Nampa-based business Stella's Ice Cream for multiple penalties regarding child labor laws. According to the department, four of the local ice cream store's locations have been fined $321,015 for endangering children employees by assigning them dangerous tasks, working during hours forbidden by law and illegally sharing tips with managers.
"Learning new skills in the workforce is an important part of growing up, but we must protect children and ensure their first jobs are safe and do not interfere with their education or well-being," said Wage and Hour Division District Director Katherine Walum in Portland, Oregon. "The Fair Labor Standards Act allows for work experiences but restricts the employment of young workers in certain jobs and provides for penalties when employers do not follow the law."
Stella's Ice Cream issued a statement to KTVB pointing out that the incidents occurred years prior, and the business has been in compliance since that time.
"Stella's Ice Cream acknowledges the findings of a recent federal investigation into our compliance with child labor and tip-sharing laws during the period of 2019–2022. While we accept full responsibility for addressing the concerns identified, we strongly disagree with the final ruling, which imposes grossly disproportionate fines that unfairly target small businesses like ours," the company stated.
The U.S. Department of Labor stated the company faced civil money penalties after an extensive investigation.
"Four of its Idaho retail locations put the safety of dozens of children at risk by employing them to perform dangerous tasks and work later than the law allows," stated the department. "Investigators with the department's Wage and Hour Division determined that Stella's Ice Cream locations in Boise, Caldwell, Eagle and Nampa employed children to operate industrial mixers, drive a delivery van and work during times forbidden by law. Specifically, the division found the employer regularly employed workers between the ages of 14 and 15 to work past 10:30 p.m."
In the statement from Stella's, the company says the investigation found that teenage employees did operate some kitchen equipment.
"This equipment, commonly found in households across America and widely regarded as safe, was deemed non-compliant because the mixer exceeded the federal government’s maximum allowable horsepower under an obscure and outdated regulation. It is difficult to reconcile that teenagers can legally operate motor vehicles on public roads yet are prohibited from using a household-style kitchen mixer in a small business setting," the company stated.
The statement furthered that due to issues between federal and state labor laws the company faced," significant challenges."
"For example, state regulations allow teenagers to work certain hours that directly conflict with federal rules," Stella's stated. "These contradictory laws made it difficult to fully comply with the more stringent federal requirements. The lack of clarity in these laws highlights the challenges small business owners face when trying to navigate a complex and inconsistent legal landscape."
Additionally, the investigation uncovered the company shared tips with managers and supervisors, which is a violation of federal regulations.
"The FLSA does not permit managers and supervisors to be included in a tip pool. This finding led to the recovery of $79,463 in back wages and liquidated damages for 208 affected workers," the US Department of Labor stated.
Read the full statement fr5om Stella's Ice Cream:
Stella's Ice Cream Responds to Federal Investigation on Child Labor Laws
Nampa, Idaho — Stella's Ice Cream acknowledges the findings of a recent federal investigation into our compliance with child labor and tip-sharing laws during the period of 2019–2022. While we accept full responsibility for addressing the concerns identified, we strongly disagree with the final ruling, which imposes grossly disproportionate fines that unfairly target small businesses like ours.
The investigation centered on two key issues: the use of standard kitchen equipment by teenage employees and discrepancies between state and federal laws regarding the hours teenagers are allowed to work.
First, the investigation found that teenage employees occasionally operated equipment such as a KitchenAid-style mixer and a simple oven to make cookies and brownies for our ice cream shop. This equipment, commonly found in households across America and widely regarded as safe, was deemed non-compliant because the mixer exceeded the federal government’s maximum allowable horsepower under an obscure and outdated regulation. It is difficult to reconcile that teenagers can legally operate motor vehicles on public roads yet are prohibited from using a household-style kitchen mixer in a small business setting.
Second, discrepancies and contradictions between state and federal labor laws created significant challenges for understanding and compliance. For example, state regulations allow teenagers to work certain hours that directly conflict with federal rules. These contradictory laws made it difficult to fully comply with the more stringent federal requirements. The lack of clarity in these laws highlights the challenges small business owners face when trying to navigate a complex and inconsistent legal landscape.
It is important to note that these incidents occurred during the period of 2019–2022, and we have been in full compliance with all federal regulations since immediately addressing these concerns upon notification of the discrepancies.
The investigation also assessed fines against Stella’s Ice Cream for our tip-sharing practices. At Stella’s, we have always sought to create a fair and equitable system for all employees who contribute to serving our customers, regardless of their assigned job titles. We believe that everyone who plays a role in providing great customer service should share equally in the tips left by our patrons. Unfortunately, the federal government does not agree with this approach and has taken issue with our efforts to promote fairness and equality in the workplace.
At no point did Stella's Ice Cream ever disproportionately allocate tips or take tips away from employees for the benefit of ownership. Our goal was, and always has been, to ensure that tips were distributed fairly among team members. Despite our good intentions, the government’s rigid standards penalized our attempt to create a positive and equitable work environment for our employees.
Despite the technical nature of these violations and the absence of any harm or negative impact to employees, the fines imposed were grossly excessive. These penalties are entirely disproportionate to the nature of the violations and represent an undue burden on small businesses like ours.
We are not hiding from these allegations. Instead, we see this as an opportunity to share our experience and help other small business owners avoid the same unjust treatment. We believe greater transparency and fairness in regulatory enforcement are essential to supporting small businesses and protecting jobs in local communities.
We believe it is time for local and state representatives to take a proactive approach in advocating for small businesses and fighting against these unjust measures. Small business owners should not feel bullied into compliance with vague and overly punitive federal regulations. Instead, the government should focus on helping and educating small businesses, providing clear guidance and support, and reserving penalties and fines as a last resort. Small businesses are the backbone of local communities, and they deserve to be treated with respect and fairness, not targeted and penalized unfairly.
We want to emphasize that no employees were harmed or negatively impacted by any of these findings. The safety and well-being of our team have always been, and will continue to be, our highest priority.
Stella’s Ice Cream remains steadfast in our commitment to complying with the law, ensuring the safety of our employees, and serving our community with integrity. While we fully accept responsibility for any mistakes made, we urge regulators to adopt a more balanced and reasonable approach that supports, rather than punishes, small businesses.
KTVB will update this story if more information becomes available.
