Dollar Tree to Pay $1M+ for Violations at Distribution Centers
Dollar Tree Inc. has reached a civil settlement over alleged hazardous- waste/-material violations at its distribution centers in San Joaquin and San Bernardino counties in California. The settlement was entered in conjunction with 48 district attorney and two city attorney offices from around the state.
In 2019, three large bleach spills occurred at the Dollar Tree distribution centers in both San Joaquin and San Bernardino counties within a short period of time. Inspections by the San Joaquin County Environmental Health Department at the San Joaquin distribution center, combined with continued investigations by the district attorney’s office, revealed statutory and regulatory hazardous-waste violations, including a large number of hazardous-waste items in the Dollar Tree trash compactor. Audits by San Bernardino County in both 2019 and 2021 showed similar violations.
Last week, San Joaquin County Superior Court Judge Barbara Kronlund approved a settlement. Dollar Tree will pay the San Joaquin County District Attorney’s Office a total of $800,000 in cost recovery and civil penalties and will pay the San Joaquin County Environmental Health Department a total of $220,000.
Dollar Tree is also required to conduct multiple annual waste audits at each of its distribution centers in California over the next five years.
Additionally, the company must continue to implement a trash inspection program at every store, where employees are responsible for visually inspecting every bag, box or loose item for disposal to ensure that no unauthorized hazardous waste or medical waste is improperly disposed in solid-waste collection containers.
A Dollar Tree representative provided the following statement to Progressive Grocer: “Dollar Tree is dedicated to responsible waste management and compliance with environmental regulations. Dollar Tree continues to work cooperatively with California regulators and has adopted enhanced procedures to ensure proper handling and disposal of waste.”
The San Joaquin County District Attorney Office indeed reported that Dollar Tree’s corporate office and environmental compliance group were extremely cooperative with the district attorneys throughout the investigation and settlement process.
In other company news, Dollar Tree is also under investigation in Arkansas. Scott+Scott Attorneys at Law LLP, an international securities and consumer rights litigation firm, is investigating whether members of Dollar Tree’s board of directors caused or allowed Dollar Tree to operate in an unlawful or otherwise improper fashion, causing damage to Dollar Tree and its shareholders. Scott+Scott references an incident last year. On Feb. 18, an inspection of a Family Dollar distribution facility in West Memphis, Ark., by the U.S. Food and Drug Administration revealed insanitary conditions, including a rat infestation, leading to a voluntary recall of dozens of food items and the temporary closure of hundreds of stores.
Meanwhile, in August of this year, Dollar Tree agreed to settle for $1.35 million with the U.S. Labor Department’s Occupational Safety and Health Administration (OSHA) for unsafe working conditions. Under the settlement, Dollar Tree is required to conduct a comprehensive assessment of the root causes behind the violations found at multiple stores. The company will also maintain a 24-hour hotline to receive safety complaints, establish a tracking system to ensure that complaints are addressed and meet quarterly with OSHA to discuss progress.
Chesapeake, Va.-based Dollar Tree operated 16,476 stores across 48 states and five Canadian provinces as of July 29. The company is No. 21 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.
