YOUTH EMPLOYMENT; MODIFY S.B. 964 (S-1):

SUMMARY OF BILL

REPORTED FROM COMMITTEE

 

 

 

 

 

 

Senate Bill 964 (Substitute S-1 as reported)

Sponsor: Senator Mary Cavanagh

Committee: Labor

 


CONTENT

 

The bill would amend the Youth Employment Standards Act to do the following:

 

--   Require the Department of Labor and Economic Opportunity (LEO) to issue and generally administer work permits, instead of an issuing officer at a school, 18 months after the bill's effective date.

--   Modify the number of hours a minor less than 16 years old could work, depending on when school was in session.

--   Require a person proposing to employ a minor to receive authorization from LEO.

--   Require LEO to create a registration system for minors and employers.

--   Require the Director of LEO to determine whether the employer complied with the Act and provide notice of the compliance within five days of a minor and the employer registering.

--   Specify that registration requirements would not apply to a minor to whom work permits do not currently apply.

--   Exempt information in the registration system from the Freedom of Information Act.

--   Require the Director of LEO to keep a database of employers authorized to employ minors.

--   Require the Director of LEO to promulgate rules to implement the bill's provisions.

--   Prohibit a deviation from standards under the Youth Employment Standards Act that allowed a minor to work between 12 AM and 5 AM or in hazardous or injurious occupations.

 

MCL 409.102 et al.

 

BRIEF RATIONALE

 

Employment for minors promotes financial independence and literacy; however, according to testimony, employment for minors also can be disempowering because LEO often cannot effectively enforce the Act, which can lead to minors being employed in unsafe situations. Transparent enforcement mechanisms should be implemented to ensure that minors can access the benefits of being employed while being treated lawfully by their employers.

 

Legislative Analyst: Alex Krabill

 

FISCAL IMPACT

 

The bill would create costs for the Department for Fiscal Year 2025-2026, as LEO would have to create two registration systems to be used by minors and employers, respectively. These would be programming costs under the language of the bill and likely would incur costs in the form of IT development and implementation, along with the hiring of several full-time equivalents (FTEs) to manage the new systems. Currently, new FTEs cost the State roughly $140,000 in salary and benefits. Additional security measures also could need to be adopted to protect any personally identifiable information of minors using the registration system.

 

Date Completed: 10-22-24 Fiscal Analyst: Cory Savino, PhD

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.