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Labor Department Investigating Alleged Hiring of Migrant Teens at HelloFresh Facility

Government probing meal prep company, its Factor subsidiary and staffing firm for practices at Aurora, Ill.-based plant
Lynn Petrak, Progressive Grocer
HelloFresh
HelloFresh's subsidiary, Factor, runs a meal prep facility in Aurora, Ill., that is the focus of a migrant teen hiring allegation.

Meal kit company HelloFresh is under review for hiring practices at one of the facilities it owns. According to a report from ABC News, the U.S. Department of Labor is looking into claims that migrant teenagers are working at a meal prep site in the city of Aurora, about 40 miles west of Chicago.  

The news report cited a source at an immigrant rights advocacy group, who alleges that teens who hailed from Guatemala were discovered to be working at the facility operated by HelloFresh’s subsidiary, Factor75. As part of its investigation, the Labor Department is probing the hiring firm that works with HelloFresh in that market, the agency confirmed to ABC News. 

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The Berlin, Germany-headquartered HelloFresh responded to the allegations in a statement shared with Progressive Grocer. "We were deeply troubled to learn of the allegations made against a former temporary staffing agency, Midway Staffing. As soon as we learned of these allegations, we immediately terminated the relationship. We have strict protocols in place to ensure all vendors follow our robust global ethics and compliance policies. We have zero tolerance for any form of child labor, and we have taken action to ensure no minors perform work in or have access to our facilities,” a spokesperson told PG. “Please also note that Midway Staffing was only providing services in a Factor facility, not HelloFresh. And HelloFresh nor Factor directly hired, converted, or otherwise employed the alleged underage workers.”

In October, HelloFresh reported that that it fulfilled 15.69 million orders during the third quarter of its fiscal 2024 year, compared to 16.05 million orders during the prior third quarter. Revenue in the North American market rose 0.9% year-over-year in the third quarter, per the company’s latest financial report. HelloFresh acquired the Batavia, Ill.-based Factor75 meal kit startup in 2020.

HelloFresh operates in 18 international markets and is No. 56 on The PG 100, Progressive Grocer’s 2024 list of the top retailers of food and consumables in North America. The company has offices in New York, Chicago and Boulder, Colo.

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