Legislative Analysis
Phone: (517) 373-8080
MODIFY YOUTH EMPLOYMENT STANDARDS ACT http://www.house.mi.gov/hfa
ENFORCEMENT AND MINOR WORK PERMIT
PROCEDURES Analysis available at
http://www.legislature.mi.gov
Senate Bill 963 as reported from House committee
Sponsor: Sen. Sylvia A. Santana
Senate Bill 964 (S-1) as reported from House committee
Sponsor: Sen. Mary Cavanagh
Senate Bill 965 (S-1) as reported from House committee
Sponsor: Sen. Darrin Camilleri
Committee: Labor
Complete to 12-7-24
SUMMARY:
Senate Bill 965 would increase penalties for violations of the Youth Employment
Standards Act. Senate Bill 963 is a companion bill that would add the felonies established
by Senate Bill 965 to the sentencing guidelines chapter of the Code of Criminal Procedure.
SB 964 would amend the process for issuing minor work permits, incorporate federal
employment hour limitations for 14- and 15-year-olds, and modify the procedure for
granting 16- and 17-year-olds deviations from employment hour standards.
Senate Bill 965 would modify the penalties for violations of the Youth Employment
Standards Act. Currently, violations of the act are generally misdemeanors punishable by
up to one year’s imprisonment, a fine of up to $500, or both; separate penalties apply 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 Senate Bill 965, 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
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 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
House Fiscal Agency Page 1 of 8
 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 director of the Department of Labor and Economic
Opportunity (LEO) 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. 1
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.
Senate Bill 963 would add the felonies created and modified by Senate Bill 965 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.
1
Presumably this is intended to mean the average number of hours per week, but the bill does not specify a time period
to average.
House Fiscal Agency SBs 963, 964, and 965 as reported Page 2 of 8
 Finally, the bill would update references to the Youth Employment Standards Act to reflect
paragraph numbering changes made by SB 965.
The bill cannot go into effect unless Senate Bill 965 is also enacted.
MCL 777.14b
Senate Bill 964 would amend the Youth Employment Standards Act to modify the
procedures for issuing work permits to minors, modify the hours during which minors
younger than 16 are allowed to work, and limit the circumstances under which a deviation
can be granted for minors 16 and older.
Under the Youth Employment Standards Act, 2 work permits for minor employees are
issued and revoked by the chief administrator (or their authorized designee) of the minor’s
school district, intermediate school district (ISD), public school academy (PSA), or
nonpublic school. The permits are kept on file at the minor’s place of employment and in
their permanent school record for the duration of employment, and after the minor
terminates employment, their employer must return the work permit to the school
administrator.
Beginning 18 months after it takes effect, Senate Bill 964 would transfer the responsibility
for issuing and revoking work permits to the LEO director or their designee. After this date,
a minor would generally have to register with LEO before starting work in an occupation
regulated by the Youth Employment Standards Act, and the person proposing to employ
the minor would generally have to be authorized by LEO and in compliance with the act.
After termination of employment, a minor’s employer would have to directly notify LEO. 3
LEO registration
The LEO director or designee would have to create and maintain a free, public, and online
registration system that allows a minor, or a parent or legal guardian on the minor’s behalf,
to register for employment and that allows an employer to register to employ minors.
Minors and their parents or guardians would have to be able to submit information through
the system that allows LEO to identify the minor’s name, age, home address, and contact
information, in addition to each parent’s or legal guardian’s name, home addresses, and
contact information. A minor or their parent or legal guardian would also have to be able
to describe a physical limitation of the minor.
The system would have to automatically notify an employer for which a minor registers
for employment. Before hiring a minor, the employer would have to submit the following
2
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.
3
A minor hired before the 18-month implementation date, and their employer, would be exempt from the bill’s
registration requirements until the minor becomes employed by a different employer, the primary location at which
the minor works is changed, or the minor turns 16.
House Fiscal Agency SBs 963, 964, and 965 as reported Page 3 of 8
 information to the registration system, in addition to any other information required by
LEO:
• The employer’s name and contact information.
• The minor’s name and contact information.
• The address of each of the employer’s worksites and the minor’s proposed primary
worksite.
• The name of each minor currently employed.
• A signed statement made under penalty of perjury that the employer will comply
with all applicable youth employment laws.
The LEO director could establish other requirements for the system that they determine to
be relevant.
Information in the registration system (other than information in the youth employer
database, as described below) would be exempt from disclosure under the Freedom of
Information Act (FOIA), and LEO could disclose information in the system only as
necessary for enforcement and implementation of the Youth Employment Standards Act.
Permit approval
Within five days after a minor and their employer complete the online registration, the LEO
director or designee would have to determine whether the minor’s employment would be
in compliance with the act and notify the employer, minor, and parent or guardian of their
determination and of any deviations that have been requested or authorized. If LEO does
not notify the required individuals by the deadline, the minor could immediately begin
work for the employer.
The online registration system would have to allow a minor, parent or legal guardian, or
employer to review a determination. A parent or legal guardian would have five days after
receiving the notice to notify LEO that they do not consent to a deviation or portion of the
deviation, and then the deviation or portion of the deviation would not be authorized.
Youth employer database
The LEO director or would have to create a database of authorized employers based on the
information in the registration system that displays, upon each authorized employer’s
request, the employer’s name and address and that is available online to the public at no
cost. If the LEO director or designee determines that an employer in the database is
unauthorized to employ minors under the Youth Employment Standards Act, they would
have to immediately remove the employer.
Work hours for minors under 16
Currently, a minor who is 14 or 15 years old cannot work outside the hours of 7 a.m. to 9
p.m., cannot work for more than six days in one week or for a period longer than a weekly
average of eight hours per day or 48 hours per week, and cannot work for more than ten
hours in a day. If the minor is a student, they cannot be employed more than a combined
school and work week of 48 hours while school is in session.
House Fiscal Agency SBs 963, 964, and 965 as reported Page 4 of 8
 Instead, SB 964 would prohibit 14- and 15-year-olds from working outside the hours of 7
a.m. and 9 p.m. between June 1 and Labor Day and outside the hours of 7 a.m. and 7 p.m.
for the rest of the year. In addition, those minors could work for a maximum of three hours
per day and 18 hours a week during a week when school is in session, and a maximum 40
hours per week with no daily limit when school is not in session. (As is current law, the
bill would provide that 14- and 15-year-olds can only work during times outside of school
hours. 4) These provisions would be identical to federal requirements for 14- and 15-year-
olds. 5
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.
MCL 409.102 et seq.
BACKGROUND:
In Michigan, a 2019 incident at an 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. 6
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. 7 The article detailed how migrant
children can face intense pressure to make money, which can result in their 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
4
Outside school hours would mean, as defined in 29 CFR 570.35, such periods as before and after school hours,
holidays, summer vacations, weekends, and any other day or part of a day when school is not in session as determined
by the applicable local public school district. Summer school sessions held outside the regular school year are
considered to be outside of school hours.
5
See: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-570/subpart-C/section-570.35
6
https://www.michigan.gov/ag/news/press-releases/2023/08/08/ionia-meat-processor-sentenced-after-pleading-
guilty-to-illegally-employing-minor.
7
https://www.nytimes.com/2023/02/25/us/unaccompanied-migrant-child-workers-exploitation.html.
House Fiscal Agency SBs 963, 964, and 965 as reported Page 5 of 8
 violation of state and federal law, due to employer negligence and understaffed
enforcement agencies.
Senate Bill 965 (S-1) as passed by the Senate is similar to the H-1 substitute for House Bill
4932 as reported by the House Labor committee in October 2023. 8 Senate Bill 963 as
passed by the Senate is identical to the as-introduced version of HB 4962, which was
reported by the House Labor committee in October 2023. The S-1 substitute for SB 964 as
passed by the Senate is similar to HB 5594. 9
FISCAL IMPACT:
Senate Bill 964 would create additional costs for the Department of Labor and Economic
Opportunity. Costs would be incurred for the registration system, employer database, and
for LEO’s other responsibilities under the bill. The department projects that one-time costs
of $810,000 would be incurred, with ongoing costs totaling $310,000 annually. These cost
estimates include costs for two additional FTE positions and information technology
modifications. The bill would not create any additional revenue for LEO.
Senate Bill 965 would increase costs to the Department of Labor and Economic
Opportunity by an indeterminate amount. The amount of increased costs would be
dependent on the number of new cases and violations that 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 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.
The bill would have an indeterminate fiscal impact o