Analysis

Topic: Amends Youth Employment Standards Act to Add Construction Projects for Charitable Organizations; Also Expands Farming Activities
Sponsor: Representative DeWeese
Committee: Employment Relations, Training, and Safety
Date Introduced: March 13, 2001
Date of Analysis: November 15, 2001

Position: The Department of Consumer and Industry Services supports the concept of the bill.

Backgroundl: The Youth Employment Standards Act (1978 PA 90; MCL 409.119) lists activities to which it does not apply or prohibit a minor from engaging in. The list includes:

• domestic work or chores in connection with private residences.
• soliciting, distributing, selling, or offering for sale newspapers, magazines, periodicals, or political or advertising matter.
• shoe shining.
• services performed as members of recognized youth-oriented organizations engaged in citizenship training and character building.
• employment in a parent's or guardian's business.
• farm work that does not violate the Department of Consumer and Industry Services standards.
• employment by a school, academy, or college in which the minor is enrolled as a student and is at least 14 years old.

Historically, it has been interpreted that 1978 PA 90 applies to minors, paid or unpaid. Without legislation exempting minors from the newly proposed activities listed below, the minor's activities, whether or not the minor received payment, would be in violation of 1978 PA 90.

Under the Fair Labor Standards Act (Subpart C of Part 570 of Title 29 of the Code of Federal Regulations, Child Regulation No. 3) minors 14 and 15 years of age are prohibited from being employed in "construction."

Rule 408.6208(1) of the Michigan Administrative Code states: A minor less than 16 years of age shall not be employed in any occupations in a construction operation, as defined in R 408.6203(d) to include repair or clean up of a construction site.

Current departmental policy does provide for 16- & 17-year-old minors to be employed to do non-hazardous construction work on construction sites. Policy 3(A) states: "A minor shall not be employed on a construction site in an occupation involving excavation, highway, bridge, street construction, roofing, wrecking, demolition, ship breaking operations, new commercial or new residential construction, except a minor 16 or older may be employed on a construction site for a new single family home, provided the minor does not use power tools, wood working machines or hazardous substances and the employment is not hazardous."

Description of Bill: HB 4460 would amend 1978 PA 90 to add the following items to the list of activities to which it does not apply or prohibit a minor from engaging in.:

• "construction work or operations" performed as an unpaid volunteer, if the construction work or operations were performed under adult supervision for a "charitable housing organization."
• farm work designated in Sector 11 - Agriculture, forestry, fishing, and hunting, of the North American Industry Classification System (NAICS) - U.S., 1997, published by the Office of Management and Budget.

The bill defines the two highlighted terms above as:

Construction work or operations: Those activities included in Sector 23 - Construction, of the North American Industry Classification System (NAICS) - United States, 1997, published by the Office of Management and Budget. Construction work or operations include the repair or clean-up of a construction site.

Charitable housing organization: A non-profit charitable organization the primary purpose of which is the construction or renovation of residential housing for conveyance to a low- income person. "Low-income person" means a person with a family income of not more than 60% of the statewide median gross income. (Note: "Family income" and "statewide median gross income" mean those terms as defined in Section 11 of the State Housing Development Authority Act of 1966, 1966 PA 346, MCL 124.1411.)

Arguments For: Many children and their parents have expressed a desire to assist in a wide variety of community projects. Involvement in volunteer work can help children raise their self-esteem and learn new skills as they work hand in hand with adults in community-based projects. Youth organizations, churches, and a variety of other organizations are avenues for involvement in such projects.

The bill targets community-building projects for residents of low-income housing programs, such as "Habitat for Humanity,"etc. These projects enjoy widespread recognition and praise by Michigan citizens, and expansion of these projects would require the expansion of the volunteer base necessary for taking on new projects. Young persons can make a valuable contribution to such community-building projects.

Arguments Against: The question is, "How can we make these amendments to the Youth Employment Standards Act work with the least amount of risk to Michigan minors?"

The proposed bill, as written, raises a few red flags. HB 4460 makes reference to "North American Industry Classification System included in Sectors 11 and 23." These sectors include several "hazardous" occupatons. Further, the bill also allows for certain construction activities, which can be very dangerous. Below is a list of included industries and examples of the hazardous activities associated with each:

Logging and Forestry: Operating saws, axes, and power cutting equipment (i.e. Christmas tree harvesting); trapping and harvesting of fish and animals.
Agriculture: Corn de-tasseling and picking and/or processing crops via heavy duty machinery, etc.
Construction: Electrical work, roofing, excavation, wrecking, demolition, etc.

Although much of the work can be very safe, unless specifically prohibited, the bill would allow minors to participate in many dangerous activities, as listed above.

Supporters: The concept of the bill is supported by a wide community base including churches, youth organizations, non-profit organizations, etc.

The department supports the concept of the proposed bill, however we would recommend the following:

• Regarding construction work (NAICS Section 23), the department would support an amendment to the bill which would limit the work that 16 & 17 year-olds can do to "non-hazardous" activity only.
• Regarding agricultural work (NAICS Section 11), the department would support an amendment which would include farming, and exclude forestry, fishing, and hunting.

Opponents: The department is not aware of any opposition registered against this bill.

Fiscal Information: This bill has no fiscal impact on the department.

Economic Impact: This bill seeks to expand the volunteer (unpaid) base for many community-based projects to include minors.

Administrative Rule Impact: R 408.6199 through R 408.6308, rules governing youth employment standards, would likely need to be modified so they would not conflict with the amended provisions of the law.