Forge Industrial Staffing has expressed strong opposition to the Department of Labor's (DOL) investigation into its hiring practices, describing it as "a raw exercise of the government's coercive power." The company is contesting a magistrate judge's recommendation that it should surrender its clients' information to the DOL. This statement was part of Forge's court filing on March 18.
In the context of the DOL's investigation into alleged child labor violations by Forge, administrative subpoenas were issued to acquire Forge's client lists. According to the March 18 filing, Forge is challenging the magistrate judge's recommendation which supports the DOL. Court documents state, "The Department does not contend that it has suspicions of violations at any particular Forge location, or that it has uncovered any violations at all after several months of investigations and receipt of over 60,000 records." Despite this, the DOL continues to demand client information from Forge - a move which the company argues could be "a death knell for its business."
The DOL initiated its investigation following a February 2023 New York Times article accusing one of Forge's clients of employing underage workers. Despite these allegations cited in court documents, Forge insists that it has never knowingly hired minors. The company utilizes identity verification measures and stated that it conducted "extensive" internal investigations after the New York Times article was published. These investigations reportedly found no evidence of child labor violations while simultaneously "fully cooperating" with state and federal investigations. The company contends that "The Department's conduct and statements demonstrate that Forge's client information is not necessary to the investigation."
Brion Doyle, attorney for Forge Industrial Staffing, described the DOL investigation as a "fishing expedition" targeting both Forge and its clients in an interview with Legal Newsline. Despite cooperation from Forge, Doyle states that the DOL seeks to extend their probe beyond child labor violations to examine potential wage and hour violations under the Fair Labor Standards Act (FLSA). Forge argues that disclosing its client list could subject hundreds of businesses to unwarranted government scrutiny, potentially leading to financial ruin. The company is reportedly suffering financial losses due to the ongoing investigation, with clients canceling contracts and layoffs ensuing as a result. Doyle emphasized the unprecedented nature of the DOL's demands.
Established in 1995, Forge Industrial Staffing connects businesses with temporary and contract workers, according to its website. The company operates 11 offices in Michigan and Indiana.