Legislative Analysis
Phone: (517) 373-8080
PROHIBIT DEVIATIONS FOR MINORS IN EMPLOYMENT
http://www.house.mi.gov/hfa
AND INCREASE PENALTIES FOR VIOLATIONS
Analysis available at
House Bill 4932 (H-1) as reported from committee http://www.legislature.mi.gov
Sponsor: Rep. Phil Skaggs
House Bill 4962 as reported from committee
Sponsor: Rep. Helena Scott
Committee: Labor
Complete to: 10-25-23
SUMMARY:
House Bill 4932 would prohibit the director of the Department of Labor and Economic
Opportunity (LEO) from granting deviations from certain employment standards for minors
and would increase penalties for violations of the Youth Employment Standards Act. House
Bill 4962 is a companion bill that would add the felonies established by House Bill 4932 to the
sentencing guidelines chapter of the Code of Criminal Procedure.
House Bill 4932 would amend the Youth Employment Standards Act to limit the
circumstances under which a deviation can be granted and to modify penalties for violations
of the act.
Deviations
Currently, 16- and 17-year-olds cannot work between 10:30 p.m. (or 11:30 p.m. on weekends
and while school is not in session) and 6 a.m. without receiving approval from LEO for a
deviation from those hours. 1 Those 15 and younger may not work outside the hours of 7 a.m.
to 9 p.m. and are not eligible to receive a deviation.
The bill would prohibit a deviation that allows a minor to be employed to work between the
hours of midnight and 5 a.m. or that allows a minor to be employed in, about, or in connection
with an occupation that is hazardous or injurious to their health or personal well-being.
Violations
Violations of the Youth Employment Standards Act are generally misdemeanors punishable
by up to one year’s imprisonment, a fine of up to $500, or both. There are separate penalties
for the employment of minors in occupations involving cash transactions without required
supervision after sunset or 8 p.m., whichever is earlier, and for the employment of children in
sexually abusive activity.
Under House Bill 4932, an initial violation of the act would remain a misdemeanor, but the
maximum fine would be raised to $5,000. A second violation would be a felony punishable by
up to two years’ imprisonment, a fine of up to $25,000, or both, and a third or subsequent
1
For a fact sheet on Michigan’s youth labor rules, see: https://www.michigan.gov/-
/media/Project/Websites/leo/Folder23/whd9803_act_90_brochure_JH_Sugg_Edits.pdf
House Fiscal Agency Page 1 of 5
 offense would be a felony punishable by up to five years’ imprisonment, a fine of up to
$50,000, or both.
The bill would eliminate the separate penalties for adult supervision violations, which would
be subject to the same penalties as described above. (Current enhanced penalties would remain
for the employment of children in sexually abusive activity.)
Under the bill, if a minor is killed or suffers great bodily harm while working for their
employer 2 in violation of the act, the employer or their agent would be guilty of a felony and
would have to be fined at least $50,000 but no more than $500,000. A first offense would be
punishable by up to five years’ imprisonment, a second offense would be punishable by up to
10 years’ imprisonment, and a third or subsequent offense would be punishable by up to 20
years’ imprisonment. The bill would provide that the imposition of a fine, penalty, or other
sanction under the Youth Employment Standards Act does not affect any other right or remedy
under another law.
Additionally, the bill would allow the LEO director to impose an administrative fine of up to
$5,000 for each violation of the act after providing notice and an opportunity for a contested
case hearing under the Administrative Procedures Act. If a person who violates the act does
not pay the fine, the attorney general would have to bring a civil action to recover the fine, in
addition to any related costs or fees. Fines would be deposited in the general fund.
The LEO director could also bring an action to obtain a declaratory judgment that a method,
act, or practice violates the act, or obtain an injunction against an employer who engages or is
about to engage in a method, act, or practice that violates the act, or both.
The LEO director could also obtain a judgment requiring an employer to pay an award to each
minor employed in violation of the act. If the violation resulted in the minor’s being unable to
continue work with that employer, the amount of the award would have to be at least quadruple
the minor’s hourly wage rate at the time of the violation multiplied by the average number of
hours they worked during the four weeks preceding the violation. (Presumably this would mean
the average number of hours per week, but the bill does not specify a time period to average.)
Additionally, a minor aggrieved by an employer’s violation of the act could bring an action in
the circuit court for the county in which the alleged violation occurred or the county in which
the employer’s principal place of business is located. 3 If the minor prevails, the court could
award any combination of actual damages, punitive damages, and costs of the action (including
reasonable attorney fees).
Finally, the bill would prohibit employers from discharging, disciplining, retaliating against,
or otherwise discriminating against an employee or minor who exercises a right under the act
on their own behalf or on behalf of another employee or minor.
MCL 409.102 et seq.
2
The bill would amend the act’s definition of “employer” to specifically include a partnership or limited liability
company that employs a minor.
3
A minor would not be required to notify LEO before bringing an action.
House Fiscal Agency HBs 4932 (H-1) and 4962 as reported Page 2 of 5
 House Bill 4962 would add the felonies created and modified by House Bill 4932 to the
sentencing guidelines provisions of the Code of Criminal Procedure. Under the bill, the
employment of a minor during certain hours that involves death or great bodily harm would be
a class E felony against a person with a statutory maximum term of imprisonment of five years
for a first offense. A second offense would be a class D felony against a person with a statutory
maximum term of imprisonment of 10 years, and a third or subsequent offense would be a class
B felony against a person with a statutory maximum term of imprisonment of 20 years.
The bill would remove the guidelines for adult supervision violations and add guidelines for
felony violations of the Youth Employment Standards Act. A second offense would be a class
G felony against a person with a statutory maximum term of imprisonment of two years, and a
third or subsequent offense would be a class E felony against a person with a statutory
maximum term of imprisonment of five years.
Finally, the bill would update references to the Youth Employment Standards Act to reflect
paragraph numbering changes made by HB 4932.
The bill cannot go into effect unless House Bill 4932 is also enacted.
MCL 777.14b
BACKGROUND:
In Michigan, a 2019 incident at Ionia County meat processing company resulted in a serious
and permanent injury to a minor who was employed in violation of the Youth Employment
Standards Act. The owner of the company was fined $1,143 for employing the child under
hazardous conditions and without a verified work permit. At the time of sentencing, Michigan’s
Attorney General called on the legislature to strengthen the Youth Employment Standards
Act’s protections for children employed in dangerous conditions to better hold violating
employers accountable. 4
Additionally, a 2023 New York Times article uncovered the exploitation of foreign-born child
workers employed in hazardous conditions across the United States, including some working
at a food processing facility in Grand Rapids. 5 It detailed how migrant children can face intense
pressure to make money, which can result in them taking dangerous jobs, working night shifts,
and being unable to attend or concentrate at school. The article also highlighted a lack of
oversight of the businesses that employ children in violation of state and federal law, due to
employer negligence and understaffed enforcement agencies.
FISCAL IMPACT:
House Bill 4932 would have an indeterminate fiscal impact on the state and on local units of
government. The bill would authorize the department to impose an administrative fine of not
more than $5,000 for each violation. Revenue collected from payment of administrative fines
4
https://www.michigan.gov/ag/news/press-releases/2023/08/08/ionia-meat-processor-sentenced-after-pleading-
guilty-to-illegally-employing-minor.
5
https://www.nytimes.com/2023/02/25/us/unaccompanied-migrant-child-workers-exploitation.html.
House Fiscal Agency HBs 4932 (H-1) and 4962 as reported Page 3 of 5
 would increase revenue to the state. Under the bill, revenue from administrative fines would
be required to be deposited in the general fund.
The bill would authorize the attorney general to bring a civil action to recover the
administrative fine and costs and fees, would authorize the director of the department to obtain
a judgement or an injunction against an employer that violates provisions of the bill, and would
authorize a minor aggrieved by an employer’s violation of the bill to bring court action.
Depending on the number of civil actions, judgements, injunctions, and other court actions,
local court systems could see an increase in caseloads and related administrative costs.
An employer or agent of an employer who employs a minor in violation of the act is guilty of
a crime. Under the bill, fines for first offense misdemeanors and second, third, and subsequent
felony offenses would be increased. Increased fine revenue would increase funding for public
and county law libraries.
Also under the bill, if a minor is killed or suffers great bodily harm while working, the employer
or the employer’s agent would be guilty of a felony. Sentencing times would vary for first,
second, third, and subsequent offenses. The number of felony convictions that would result
under the bill is not known. An increase in felony convictions would result in increased costs
related to state prisons and state probation supervision. In fiscal year 2022, the average cost of
prison incarceration in a state facility was roughly $47,900 per prisoner, a figure that includes
various fixed administrative and operational costs. State costs for parole and felony probation
supervision averaged about $5,000 per supervised offender in the same year. Those costs are
financed with state general fund/general purpose revenue. The fiscal impact on local court
systems would depend on how provisions of the bill affected court caseloads and related
administrative costs. It is difficult to project the actual fiscal impact to courts due to variables
such as law enforcement practices, prosecutorial practices, judicial discretion, case types, and
complexity of cases. Any increase in penal fine revenue would increase funding for public and
county law libraries, which are the constitutionally designated recipients of those revenues.
The bill would increase costs to the Department of Labor and Economic Opportunity by an
indeterminate amount. The amount of increased costs would be related to the number of new
cases and violations that might arise under the bill's provisions. The fiscal impact to LEO is
not expected to be significant.
The Department of the Attorney General (AG) may experience an increase of cases related to
the bill to the extent that it takes civil action against individuals who are reported to the
department for failing to pay a civil fine. In addition to recovering the civil fine, the bill would
require the AG to collect an amount for a costs and attorney fees which would offset direct
costs of the case for the AG. The AG would likely be able to absorb any increased caseload
resulting from the bill with ongoing staff and funding. If existing AG staff is insufficient to
comply with the bill additional employees may be hired. Annual state costs for an additional
attorney FTE position are approximately $200,000 and annual costs for a support staff position
is approximately $100,000.
House Bill 4962 is a companion bill to HB 4932 and would amend sentencing guidelines to
include employment of children during certain hours involving death or great bodily harm,
House Fiscal Agency HBs 4932 (H-1) and 4962 as reported Page 4 of 5
 first, second, third and subsequent offenses, as a Class E, D, and B felonies, respectively. The
bill would not have a direct fiscal impact on the state or on local units of government.
POSITIONS:
Representatives of the Department of Labor and Economic Opportunity (LEO) testified in
support of the bills. (10-12-23)
The following entities indicated support for the bills:
• Department of the Attorney General (10-12-23)
• AFT Michigan (10-12-23)
• Michigan AFL-CIO (10-12-23)
• Michigan Association for Justice (10-12-23)
• Michigan Laborers District Council (10-12-23)
• Michigan League for Public Policy (10-12-23)
• Michigan Nurses Association (10-12-23)
• Restaurant Opportunities Center of Michigan (10-19-23)
The following entities indicated support for House Bill 4932 (10-12-23):
• Michigan Education Association
• Michigan Immigrant Rights Center
• Oakland Schools
The Home Builders Association of Michigan indicated opposition to the bills. (10-12-23)
Legislative Analyst: Holly Kuhn
Fiscal Analysts: Robin Risko
Viola Bay Wild
Michael Cnossen
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HBs 4932 (H-1) and 4962 as reported Page 5 of 5


Statutes affected:
House Introduced Bill: 777.14
As Passed by the House: 777.14