The settlement follows an investigation by the Pennsylvania Department of Labor that began in February 2026. State officials said the probe found Walmart failed to obtain required work permits for minor employees, did not notify school districts when minors were hired or terminated, failed to provide minors with legally required breaks, and allowed minors to work more hours than permitted under state law.

"This record settlement sends a clear message that Pennsylvania will not tolerate companies that cut corners at the expense of our young workers," a spokesperson for the Shapiro administration said in a statement announcing the agreement.

Under the terms of the settlement, Walmart must also change its business practices. The company is required to train managers on Pennsylvania's child labor laws, display workplace postings informing employees of their rights, and report additional information about minor employees to the state every six months.

State labor officials said they believe Walmart is currently in compliance with the commonwealth's labor laws.

A labor official told reporters that the settlement money will be directed toward "labor law education, compliance assistance, and enforcement activities."

The settlement underscores growing scrutiny of how large retailers treat young workers. Pennsylvania's Child Labor Act limits the hours minors can work and requires employers to obtain permits and provide mandated breaks, provisions designed to protect the health and education of working teenagers.

Walmart, the nation's largest private employer, has not commented publicly on the specific allegations beyond agreeing to the settlement terms. The company did not immediately respond to a request for comment.

The $7.8 million penalty is the largest ever secured under Pennsylvania's Child Labor Act, according to the Shapiro administration. State officials said the agreement resolves the investigation without further litigation.