Hire Your Kids Now

The Foundation Every State Section Builds On

The strategy of employing your own minor children through a parent-owned Family Management Company rests on two separate bodies of Federal law that most people blur together. They are not the same, they do not have the same boundaries, and the structure you choose either preserves both advantages or quietly forfeits one of them.

The two bodies of law are:

1. Child labor law ... which governs whether and how a minor may legally work (the FLSA and its regulations).
2. Employment tax law ... which governs whether the wages are exempt from FICA and FUTA (the Internal Revenue Code).

Get the structure right and both advantages line up. Get it wrong ... most commonly by running payroll through a corporation or an S-corp instead of a parent-owned entity ... and you keep the deduction but lose the payroll-tax exemptions that make the strategy compelling in the first place.

A. Federal Child Labor Law (FLSA)

A.1 The "Oppressive Child Labor" prohibition and the parental exemption

The Fair Labor Standards Act does not say "children may not work." It prohibits oppressive child labor, and then carves out the employment of a child by that child's own parent. The exact text:

VERIFY: https://www.law.cornell.edu/uscode/text/29/203

The implementing regulation states the parental exemption plainly:

VERIFY: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-570/subpart-C/section-570.126

What this means in plain terms. Under Federal child labor law, a parent may employ their own child of any age in a nonagricultural occupation, with no Federal minimum age and no Federal hours limit ... EXCEPT the exemption does not reach: (a) manufacturing, (b) mining, and (c) the 17 Hazardous Occupations Orders the Secretary of Labor has declared off-limits for minors under 18 (e.g., most power-driven machinery, roofing, excavation, driving as a primary job duty).

This is precisely why UBD positions age-appropriate work as the absolute floor: likeness in photos/video for marketing, light office tasks (emptying trash, vacuuming a home office), and ... at appropriate ages ... social media management and in-house bookkeeping/bill-pay. None of those touch manufacturing, mining, or the hazardous orders.

A.2 State law is a floor, not a ceiling ... the FLSA savings clause

The FLSA expressly does not preempt stricter state child labor law. Where a state sets a higher standard (e.g., requires work permits with no parental exemption, or sets a higher minimum age), the stricter rule controls. This is the entire reason this Compendium is built state by state: the Federal parental exemption is generous, but a number of states are stricter, and a few apply permit or hours rules even to a parent's own child. Each state section identifies exactly where the state is stricter than the Federal floor.

B. Federal Employment-Tax Law (The Income-Shifting Engine)

B.1 FICA exemption ... wages of a child under 18 employed by a parent

VERIFY: https://www.law.cornell.edu/uscode/text/26/3121

B.2 FUTA exemption ... wages of a child under 21 employed by a parent

VERIFY: https://www.law.cornell.edu/uscode/text/26/3306

B.3 The structure trap ... these exemptions depend on WHO the employer is

The FICA (under-18) and FUTA (under-21) exemptions apply to a child "in the employ of his father or mother." IRS guidance (Publication 15, Circular E; Publication 334) confirms the long-standing position that these family-employment exemptions apply when the trade or business is:

• A sole proprietorship owned by the parent, or
• A partnership in which each partner is a parent of the child.

They do NOT apply when the child is employed by:

• A corporation (even one wholly owned by the parents),
• An S-corporation, or
• A partnership that has even one partner who is not the child's parent.

VERIFY: https://www.irs.gov/publications/p15 and VERIFY: https://www.irs.gov/publications/p334 (Family employees ... "Child employed by parents.")

This is the linchpin of the Family Management Company design. If the operating business is an S-corp or a corporation (as many UBD client enterprises are), running the kids' payroll through the operating entity loses the FICA/FUTA exemptions. The fix UBD teaches: a separate Family Management Company ... a sole proprietorship owned by one parent, a partnership owned only by both parents, or a parent-owned single-member LLC ... employs the children, and that company contracts to provide services to the family's other businesses. A note on the SMLLC: a disregarded single-member LLC is treated as a corporation for employment-tax purposes under Treas. Reg. § 301.7701-2(c)(2)(iv), which standing alone would defeat the parent exemption. It is preserved only because Treas. Reg. § 31.3121(b)(3)-1(d) and its FUTA parallel § 31.3306(c)(5)-1(d) (added by T.D. 9554, effective for wages paid on or after November 1, 2011) treat the owner, not the disregarded entity, as the employer for the family-employment exceptions. The SMLLC therefore preserves the exemptions and adds a liability shield ... but that protection is lost the moment the entity elects S-corp or C-corp treatment.

B.4 The income tax side ... the Standard Deduction shift

A child with only earned income can offset that income with the standard deduction. For 2026 returns the standard deduction for a single individual is $16,100 (inflation-adjusted annually; the figure above is the confirmed 2026 amount ... verify the applicable-year figure before implementing in a later year). For a dependent, the standard deduction is the greater of $1,350 or (earned income + $450), capped at the single-filer amount ($16,100 for 2026). Because the kiddie tax under IRC § 1(g) applies only to unearned income, wages for real work pass through it ... but a child's unearned income (interest, dividends) is not fully sheltered by the earned-income standard deduction, so a child can still owe tax on significant investment income.

VERIFY: https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill

So wages paid to a child for legitimate, age-appropriate work:

• are deductible to the FMC (an ordinary and necessary business expense, IRC § 162),
• are taxed to the child ... often at $0 up to the standard deduction, and at the child's low

brackets above it,

• carry no FICA if the child is under 18 and the FMC is a parent-owned sole prop/partnership,
• carry no FUTA if the child is under 21 under the same structure.

That is the income shift: dollars taxed in the parent's high bracket become dollars taxed in the child's near-zero bracket, with payroll taxes removed by statute.

B.5 The three non-negotiables (where the IRS actually wins cases)

The exemptions are statutory, but the deduction is only as good as its substance. The case law on hiring children turns on three questions:

The Tax Court's three-part test for deducting wages paid to a family member, stated in Eller v. Commissioner, 77 T.C. 934, 962 (1981), is that compensation is deductible only if it is (1) reasonable in amount, (2) based on services actually rendered, and (3) actually paid or incurred.

1. Was the work real and actually performed? Manufactured or fictional jobs lose.
2. In Eller v. Commissioner, the parents owned a mobile home park, shopping center, and

trailer-sales operation and paid their three children (ages 7, 11, and 12) for swimming-pool maintenance, landscaping, cleaning, minor repairs, minor office duties, and tenant registration. The IRS disallowed roughly 90% of the wages as unreasonable. The Tax Court concluded "that most of the compensation paid was both reasonable in amount and based on services actually rendered" and allowed the deduction. VERIFY (case): https://bradfordtaxinstitute.com/Endnotes/77_TC_934.pdf

• Rev. Rul. 73-393 confirms the income-tax side: "Reasonable wages paid by a father to his

child for services rendered as a bona fide employee in his trade or business are deductible business expenses, even though the child uses the wages for part of his own support." Note the same ruling holds the value of meals and lodging a parent furnishes a minor child is a nondeductible personal support expense ... so structure pay as cash wages for real work, not as in-kind support. VERIFY (ruling): https://bradfordtaxinstitute.com/Endnotes/Rev_Rul_73-393.pdf

1. Was the compensation reasonable for the work, the age, and what an unrelated party would be

paid? The test is what you would have paid an unrelated third party to do the same task ... not what rounds neatly up to the standard deduction. Pay must match the role, not the tax goal.

1. Was it documented like a real job? Contemporaneous timesheets (hand-kept is fine;

backfilled is not), a dated one-page job description, a written contract between the FMC and the operating business, payroll records, a W-4 from the child, W-2s in January, and an actual bank transfer to an account in the child's name (the W-2 name must match the bank statement name). Courts have denied deductions where children had no set hours and no records ... the younger the child, the more the file must look like a genuine employer-employee relationship.

C. How the Federal Layer Flows Into Each State Section

Each state section that follows assumes this Federal foundation and then answers only what changes at the state line:

• Does the state impose a minimum age, hours limit, or work permit that reaches a parent's

own child (stricter than the FLSA parental exemption)?

• Does the state have an income tax, and does it conform to the federal standard deduction

(affecting the child's state-level result)?

• What are the state's workers' compensation and unemployment insurance rules for family

employees?

• What is the permit step-by-step ... or the confirmation that a parent-owned business is

exempt?

That's the architecture. Federal sets the floor and the engine. The states tell you where to be careful.

Federal Sources

• [STATUTE] 29 U.S.C. § 203(l) ... oppressive child labor / parental exemption: https://www.law.cornell.edu/uscode/text/29/203
• [REGULATION] 29 C.F.R. § 570.126 ... parental exemption: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-570/subpart-C/section-570.126
• [STATUTE] 26 U.S.C. § 3121(b)(3)(A) ... FICA exemption, child under 18: https://www.law.cornell.edu/uscode/text/26/3121
• [STATUTE] 26 U.S.C. § 3306(c)(5) ... FUTA exemption, child under 21: https://www.law.cornell.edu/uscode/text/26/3306
• [AGENCY GUIDANCE] IRS Pub. 15 (Circular E), Family employees: https://www.irs.gov/publications/p15
• [AGENCY GUIDANCE] IRS Pub. 334, Family employees / child employed by parents: https://www.irs.gov/publications/p334
• [AGENCY GUIDANCE] IRS 2026 inflation adjustments (standard deduction): https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill
• [CASE] Eller v. Commissioner, 77 T.C. 934 (1981): https://bradfordtaxinstitute.com/Endnotes/77_TC_934.pdf
• [RULING] Rev. Rul. 73-393 (wages to child deductible; meals/lodging not): https://bradfordtaxinstitute.com/Endnotes/Rev_Rul_73-393.pdf

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Ala. Code § 25-8-33(a) ... Minimum Age, Exceptions

Citation: Ala. Code § 25-8-33(a)

Official URL: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-33/

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-33/

Ala. Code § 25-8-36(a) ... Time Restrictions for 14-15 Year Olds

Citation: Ala. Code § 25-8-36(a)

Official URL: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-36/

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-36/

Ala. Code § 25-8-36(b) ... Nightwork Restriction for 16-18 Year Olds in School

Citation: Ala. Code § 25-8-36(b)

Official URL: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-36/

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-36/

Ala. Code § 25-8-43(a) ... Prohibited Occupations for Under 18 (selected)

Citation: Ala. Code § 25-8-43(a)

Official URL: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-43/

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-43/

Ala. Code § 25-8-45(a)-(f) ... Child Labor Certificate (Work Permit) Requirements

Citation: Ala. Code § 25-8-45

Official URL: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-45/

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-45/

Alabama Department of Labor ... Official Poster Statement (No Parent-Employer Exemption)

Source: Alabama Department of Labor Child Labor Law Poster (official state poster required to be posted by employers)

URL: https://labor.alabama.gov/docs/posters/childlaborlawposter_english.pdf

VERIFY: https://labor.alabama.gov/docs/posters/childlaborlawposter_english.pdf

Note: This is agency-published guidance. No statutory text granting a parent-employer exemption was located in Ala. Code Chapter 25-8. The absence of such exemption is itself significant.

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14: May not be employed in any gainful occupation except agricultural service. Ala. Code § 25-8-33(a).

Ages 14-15 (school year):

• Not before 7:00 a.m. or after 7:00 p.m.
• No more than 3 hours on a school day
• No more than 8 hours on a non-school day
• No more than 18 hours in a school week
• No more than 6 days per week
• No work in manufacturing/mechanical establishments, canneries, mills, workshops, warehouses, or machine shops

Ages 14-15 (summer vacation):

• Not before 7:00 a.m. or after 9:00 p.m.
• No more than 8 hours per day
• No more than 40 hours per week
• No more than 6 days per week

Ages 16-17-18 (enrolled in school):

• No work between 10:00 p.m. and 5:00 a.m. on nights preceding a school day (§ 25-8-36(b))
• Superintendent exemptions possible on individual basis

All minors under 18:

• Prohibited from all occupations listed at § 25-8-43 (mining, demolition, roofing, scaffolding, heavy equipment, logging/sawmills, power-driven woodworking/bakery/paper machinery, railroads, firefighting, explosive manufacturing, toxic chemicals, radioactive substances, asbestos, circular saws, slaughtering, etc.)

Source: Ala. Code §§ 25-8-33, 25-8-36, 25-8-43

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-8/

4. Work Permit Step-by-Step (logistics)

Alabama uses employer-level certificates, not individual work permits for each minor.

Step 1: The employer (parent or otherwise) applies to the Alabama Department of Workforce for a Child Labor Certificate at each business location where minors will work.

• Class I Certificate: for employing ages 14-15 ($15 fee, annual)
• Class II Certificate: for employing ages 16-17 ($15 fee, annual)

Step 2: The employer obtains from each minor's school (or home-school instructor) a notification of the minor's name, address, and employer information (required of the parent per § 25-8-45(g)(4) for ages 14-15).

Step 3: The employer maintains a complete list of all 14-17 year-old employees on file for inspection by child labor officials.

Step 4: If the minor's school performance deteriorates, the school administrator may notify the Department of Workforce, which will revoke or suspend the employment. § 25-8-45(d).

Parent-owned-business note: There is NO exemption. A parent employing their own child must obtain the applicable Child Labor Certificate. The Alabama DOL states this explicitly on its official poster.

Apply: https://labor.alabama.gov/childlabor/

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-45/

5. Relevant Case Law / Administrative Guidance

No directly on-point Alabama state case law located as of June 2026 specifically addressing parent-employer FMC income-shifting arrangements with minor children.

The Alabama Department of Workforce's official child labor poster constitutes agency guidance confirming that children of parents who own their own business are NOT exempt from Alabama's child labor law. This is a unique and important difference from the other five states in this compendium.

6. FMC / Income-Shifting Interaction (state-specific notes)

State income tax: Alabama has a state individual income tax with three brackets: 2% on first $500 (single) / $1,000 (MFJ), 4% on next $2,500/$5,000, and 5% on income above $3,000/$6,000. Alabama has its OWN standard deduction that does NOT conform to the federal standard deduction. The Alabama standard deduction is income-based and significantly lower than federal. For a single filer with adjusted gross income under $25,500, the Alabama standard deduction is $3,000 (2026), scaling down to a minimum of $2,500. This contrasts sharply with the federal $16,100 standard deduction for single filers (2026). The child's Alabama taxable income will be substantially higher than the federal taxable income, meaning Alabama taxes may apply at modest wage levels.

Source: Ala. Code § 40-18-15(b)(4) (Alabama standard deduction confirmed current for 2026; $3,000 single max, income-based scale-down)

VERIFY: https://law.justia.com/codes/alabama/title-40/chapter-18/article-1/section-40-18-15/

Also: https://www.revenue.alabama.gov/faqs/how-much-is-the-alabama-standard-deduction/

Alabama does allow a deduction for federal income tax paid (Ala. Code § 40-18-15(c)), which partially offsets Alabama taxable income but does not replicate the effect of the federal standard deduction.

Unemployment Insurance (Alabama UC): The Alabama UC law exclusions for family employment are not fully confirmed from a primary statute text source in this research. The federal FUTA exclusion for children under 21 employed by a parent sole prop/partnership would logically flow to Alabama's conforming UC law.

Citation: Ala. Code § 25-4-10(b)(4)

Official URL: https://law.justia.com/codes/alabama/title-25/chapter-4/article-1/section-25-4-10/

VERIFY: https://law.justia.com/codes/alabama/title-25/chapter-4/article-1/section-25-4-10/

Note: Official Alabama Legislature site (alisondb.legislature.state.al.us) returned DNS error at time of research; Justia is best available public source confirming this text.

Workers' Compensation (Ala. Code Title 25, Ch. 5): Alabama requires workers' comp for employers with 5 or more employees. An FMC with fewer than 5 employees total is below the threshold and not required to carry workers' comp. However, voluntary coverage is available and advisable given the risks. There is no explicit family-member exemption from workers' comp for child employees in Alabama.

VERIFY threshold: https://labor.alabama.gov/wc/insurance.aspx

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Use a sole proprietorship or qualifying parent partnership to preserve the federal FICA/FUTA parental exemption. Note that unlike other states, the FLSA parental exemption from hour restrictions does NOT override Alabama's own child labor law hour restrictions.

1. Age-appropriate role mapping:
2. Under 14: No employment permitted (agricultural service only)
3. Ages 14-15: Social media management, content creation, photography/video editing, administrative/clerical tasks (outside school hours only, respecting Alabama hour limits)
4. Ages 16-17: Above plus bookkeeping assistance, customer correspondence, graphic design, business operations support (respecting 10 p.m. nightwork limit on school nights)

1. Permit/certificate actions:
2. Obtain a Class I Child Labor Certificate (ages 14-15) from the Alabama Department of Workforce before the first day of work; $15 annual fee, per location
3. Obtain a Class II Child Labor Certificate (ages 16-17) before the first day of work; $15 annual fee, per location
4. Notify the minor's school of the employment details as required by § 25-8-45(g)(4)

1. Payroll and documentation actions:
2. Issue W-2 wages; withhold federal income tax and Alabama state income tax
3. Do not withhold FICA if child is under 18 and employer is a parent sole prop/partnership
4. Keep precise time records; Alabama hour rules apply even to parent-employers
5. Maintain a list of all minor employees on file for Department of Workforce inspection

1. State-specific filings: Register for Alabama withholding with the Alabama Department of Revenue. File Alabama A-1 employer withholding returns quarterly. Alabama personal exemption: $1,500 (single). Child's Alabama state income tax will apply on wages exceeding $3,000 + $1,500 = $4,500 (approximate, before other deductions).

1. Red flags and "do not do this" list:
2. Do not assume the parent-employer exemption applies in Alabama ... it explicitly does NOT
3. Do not hire a minor under 14 for non-agricultural work; there is no Alabama analog to the FLSA parent exemption for ages under 14 in non-ag work
4. Do not skip the Child Labor Certificate ... it must be obtained before employment begins
5. Do not place a minor under 18 in any of the 26 prohibited occupations under § 25-8-43
6. Do not plan Alabama state income tax based on the federal standard deduction; the Alabama deduction is substantially smaller and the tax bite at the state level is real

8. Sources (every URL used)

• [STATUTE] Ala. Code § 25-8-33 (minimum age, general): https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-33/
• [STATUTE] Ala. Code § 25-8-36 (time restrictions): https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-36/
• [STATUTE] Ala. Code § 25-8-43 (prohibited occupations under 18): https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-43/
• [STATUTE] Ala. Code § 25-8-45 (child labor certificates): https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-45/
• [STATUTE] Ala. Code § 25-8-32.1 (definitions): https://law.justia.com/codes/alabama/title-25/chapter-8/section-25-8-32-1/
• [STATUTE] Ala. Code § 40-18-15 (standard deduction): https://law.justia.com/codes/alabama/title-40/chapter-18/article-1/section-40-18-15/
• [AGENCY GUIDANCE] Alabama Dept. of Labor Child Labor Law Poster (no parent exemption): https://labor.alabama.gov/docs/posters/childlaborlawposter_english.pdf
• [AGENCY GUIDANCE] Alabama Dept. of Labor child labor program: https://labor.alabama.gov/childlabor/
• [AGENCY GUIDANCE] Alabama workers' comp insurance requirements: https://labor.alabama.gov/wc/insurance.aspx
• [SECONDARY] Alabama Chapter 8 section index: https://law.justia.com/codes/alabama/title-25/chapter-8/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

AS 23.10.325 -- Purpose:

Citation: AS 23.10.325 (§1 ch 73 SLA 1949)

VERIFY: https://labor.alaska.gov/lss/forms/pam200.pdf (Alaska L&WD official pamphlet)

AS 23.10.330(a) -- FAMILY-EMPLOYER EXEMPTION (KEY PROVISION):

Citation: AS 23.10.330(a) (§1 ch 73 SLA 1949; am §1 ch 86 SLA 1992; am §2 ch 18 SLA 1995)

VERIFY: https://labor.alaska.gov/lss/forms/pam200.pdf

AS 23.10.330(b) -- Entertainment industry exemption:

Citation: AS 23.10.330(b) (am §2 ch 18 SLA 1995)

VERIFY: https://labor.alaska.gov/lss/forms/pam200.pdf

AS 23.10.332(a) -- Authorization/work permit for minors under 17:

Citation: AS 23.10.332(a) (§3 ch 112 SLA 1976; am §§1,2 ch 76 SLA 2002)

VERIFY: https://labor.alaska.gov/lss/forms/pam200.pdf

AS 23.10.340(a) -- Hours restrictions for under-16:

Citation: AS 23.10.340(a) (§1 ch 73 SLA 1949; am §2 ch 28 SLA 1951; am §7 ch 112 SLA 1976; am §1 ch 55 SLA 1981)

VERIFY: https://labor.alaska.gov/lss/forms/pam200.pdf

AS 23.20.526(4)(C) -- UI exclusion for child under 18 employed by parent:

[Note: This is part of the definition of non-"employment" for Alaska UI purposes -- employment of a child under 18 by the child's parent is excluded from coverage.]

Citation: AS 23.20.526(4)(C)

VERIFY: https://codes.findlaw.com/ak/title-23-labor-and-workers-compensation/ak-st-sect-23-20-526/

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• May not work in general employment.
• Exceptions: newspaper sales/delivery, babysitting, handiwork, domestic employment in private homes; entertainment industry as a performer (AS 23.10.330(b)); and parent's own business under direct parental supervision (AS 23.10.330(a)).
• Entertainment requires L&WD work permit.

Ages 14-15:

• Combined school + work cannot exceed 9 hours/day.
• Work hours: 5 a.m.-9 p.m. only.
• Outside school hours: max 23 hrs/week (domestic/babysitting excepted).
• Max 6 days/week.
• Work permit (L&WD written authorization) required unless exempted under AS 23.10.330.
• Prohibited occupations: all FLSA HO for 14-15; Alaska-specific prohibitions (explosives, motor vehicle driving, mining, logging, sawmill, power-driven hoisting machinery, meat slaughter/packing).

Ages 16-17:

• General work permit required for employment not otherwise exempted.
• Cannot work in hazardous occupations listed in AS 23.10.350.
• No specific state night-work restriction for 16-17 (federal HO hours rules apply).
• 30-minute break required for 5+ consecutive hours of work (minor under 18).

Hazardous occupations (all minors under 18, AS 23.10.350):

• Explosives manufacturing/handling; motor vehicle driving; mining; logging/sawmill; power-driven hoisting machinery; meat slaughter/packing; areas offering adult entertainment; and others per L&WD regulations.

4. Work Permit Step-by-Step (logistics)

Regular employment (non-parent-supervised):

1. Employer applies to Alaska Department of Labor and Workforce Development (L&WD) for written authorization (work permit) before the minor begins work.
2. For minors at least 14: employer may use an expedited process (AS 23.10.332(c)) if L&WD has pre-approved the specific job with listed duties -- employer then obtains parent/guardian written consent within 7 calendar days of start.
3. Parent/guardian consent form: must be on L&WD-provided form; must be signed before work begins; valid for the calendar year (or December-to-December cross-year option).
4. Keep work permit/authorization on file.

Parent's business (AS 23.10.330(a) exemption):

• No work permit required when the child works under the direct supervision of a parent in a business owned and operated by the parent.
• Critical requirements: (a) "direct supervision" -- parent must be actually present and supervising; (b) business is "owned and operated by the parent" -- an LLC whose members include non-parents, or a corporation, may not qualify.
• Best practice: document the parent's ownership interest and confirm the business meets the "owned and operated by the parent" standard before relying on the exemption.

VERIFY: https://labor.alaska.gov/lss/forms/pam200.pdf; https://labor.alaska.gov/lss/rights.htm

5. Relevant Case Law / Administrative Guidance

Alaska Labor Standards Section Pamphlet (official agency publication): Confirms: "Children under 18 years of age may work under the direct supervision of a parent in a business owned and operated by a parent or on a boat owned and operated by their parent." Also confirms: "All minors 14, 15, 16 years of age must have an approved work permit... except for those minors employed by their parents." VERIFY: https://labor.alaska.gov/lss/forms/pam200.pdf

Alaska L&WD "Know Your Rights" page (official): Confirms work permit requirements apply to all minors 14-16 except parent-employer exemption, and clarifies entertainment industry permit requirements. VERIFY: https://labor.alaska.gov/lss/rights.htm

Alaska Employer Guide to Workers' Compensation Act (official DOL publication):

VERIFY: https://labor.alaska.gov/wc/publications/employer_guide_to_wc_act.pdf

No directly on-point Alaska Supreme Court case or AG opinion on minor FMC income shifting was located as of June 2026. Federal authority controls on FICA/FUTA.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: Alaska has no broad personal income tax. A child earning wages in Alaska will owe no Alaska state income tax. This makes Alaska one of the two most favorable states (with Washington) for the income-shifting strategy. The full federal income-shifting benefit is realized without any state income tax haircut. VERIFY: https://labor.alaska.gov/lss/rights.htm (confirms no state income tax context); Alaska Dept. of Revenue: https://tax.alaska.gov/

Workers' Compensation (AS 23.30): Alaska's Workers' Compensation Act requires all employers with one or more employees to carry workers' compensation insurance. The Alaska DOL guidance is explicit that no exemption exists for family members in for-profit businesses. A parent employing a child in an FMC/sole-prop business must cover the child with workers' comp insurance. VERIFY: https://labor.alaska.gov/wc/er-profit.html

Unemployment Insurance (AS 23.20.526): AS 23.20.526(4)(C) excludes from "employment" the service of a child under 18 in the employ of his/her mother or father. This exclusion parallels the federal FUTA exemption. Therefore, wages paid by a parent (as sole proprietor) to a child under 18 are not subject to Alaska SUI.

Sole proprietorship vs. LLC: The AS 23.10.330(a) child labor exemption requires the business be "owned and operated by the parent." An LLC taxed as a sole proprietorship for federal purposes may or may not qualify depending on how Alaska DOL interprets the statute. Sole proprietorship is the safest structure for the AS 23.10.330(a) exemption and the AS 23.20.526 UI exclusion.

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: A sole proprietorship (or qualifying two-parent general partnership) is the optimal structure in Alaska. It (a) preserves the AS 23.10.330(a) parent-employer child labor exemption, (b) preserves the AS 23.20.526(4)(C) UI exclusion, and (c) preserves federal FICA/FUTA exemptions. Confirm entity structure with an Alaska-licensed attorney before proceeding.

1. Age-appropriate role mapping:
2. Under 14: FMC activities permissible only under AS 23.10.330(a) -- child must be under direct parental supervision in parent's own business. No work permit needed.
3. 14-15: social media management, marketing material creation, photography, light administrative work, product photography. Under AS 23.10.330(a): no permit needed if direct parental supervision. Outside parental business: permit from L&WD needed; max 9 hrs school+work/day, 23 hrs/week outside school.
4. 16-17: broader roles; standard work permit process if not under AS 23.10.330(a) exemption.

1. Permit/certificate actions:
2. If relying on AS 23.10.330(a): document parent's ownership and direct supervision; no permit required.
3. If NOT relying on the exemption (or if business is LLC with outside ownership): obtain L&WD work permit before employment begins.
4. For entertainment work: separate L&WD entertainment industry permit required regardless of family exemption status.

1. Payroll & documentation actions:
2. Pay at or above Alaska minimum wage (2026: $14.00/hr effective July 1, 2026 per Ballot Measure 1; no state income tax withholding required).
3. Maintain detailed time records, job descriptions, and pay stubs.
4. Issue federal W-2; no Alaska state withholding.
5. Workers' comp: enroll with a licensed insurer before the child's first day of work.

1. State-specific filings / insurance:
2. Workers' comp insurance: required; no family exemption.
3. Alaska SUI: likely excluded under AS 23.20.526(4)(C) for parent-employing-child-under-18 in sole prop; confirm with Alaska Dept. of Labor.
4. Child files federal Form 1040; no Alaska personal income tax return.

1. Red flags / do-not-do list:
2. Do NOT structure the FMC as an LLC with any non-parent member if you intend to rely on AS 23.10.330(a).
3. Do NOT interpret "owned and operated" loosely -- direct ownership and day-to-day operation by the parent is required.
4. Do NOT skip workers' comp -- Alaska has no family exemption for for-profit businesses.
5. Do NOT assume "entertainment industry" work (acting, modeling, YouTube, social media) falls under AS 23.10.330(a) without confirming; entertainment work may still require L&WD permit even in parent-operated business.
6. Do NOT ignore the "direct supervision" requirement; if the child works remotely or unsupervised, the exemption may not apply.

8. Sources (every URL used)

• [STATUTE] AS 23.10.325-23.10.370 (official L&WD pamphlet): https://labor.alaska.gov/lss/forms/pam200.pdf
• [STATUTE] AS 23.20.526 (UI exclusions): https://codes.findlaw.com/ak/title-23-labor-and-workers-compensation/ak-st-sect-23-20-526/
• [AGENCY GUIDANCE] Alaska L&WD Know Your Rights (child labor): https://labor.alaska.gov/lss/rights.htm
• [AGENCY GUIDANCE] Alaska Employer Guide to Workers' Compensation Act: https://labor.alaska.gov/wc/publications/employer_guide_to_wc_act.pdf
• [AGENCY GUIDANCE] Alaska Workers' Comp requirements for employers: https://labor.alaska.gov/wc/er-profit.html
• [SECONDARY] Alaska Bar Association Youth Employment guide: https://alaskabar.org/youth/entering-the-real-world/jobs/workplace-laws/workers-compensation-and-unemployment-insurance/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Governing statutes: Arizona Revised Statutes, Title 23, Chapter 2, Article 3 (Youth Employment), ARS §§ 23-230 through 23-241. Official URL: https://www.azleg.gov/arsDetail/?title=23

ARS 23-231 -- Prohibited employments under 18 (partial verbatim from official source):

Citation: ARS 23-231

VERIFY: https://www.azleg.gov/ars/23/00231.htm

ARS 23-232 -- Prohibited employments under 16 (partial verbatim from official source):

Citation: ARS 23-232

VERIFY: https://www.azleg.gov/ars/23/00232.htm

ARS 23-233 -- Hours for persons under 16 (verbatim from official source):

Citation: ARS 23-233

VERIFY: https://www.azleg.gov/ars/23/00233.htm

ARS 23-235 -- EXEMPTIONS (including FAMILY-BUSINESS EXEMPTION) -- verbatim from official source:

Citation: ARS 23-235

VERIFY: https://www.azleg.gov/ars/23/00235.htm

Analysis of ARS 23-235(A)(1): This exemption is architecturally broader than the federal FLSA parental exemption (29 U.S.C. § 203(l)) in three respects. First, it covers a wider circle of qualifying relatives: grandparent, sibling, aunt, uncle, first cousin, stepparent, parent, or person in loco parentis -- the FLSA covers only a parent. Second, for persons under 18 in non-manufacturing, non-mining work, it exempts all three of the major rule sets (ARS 23-231 hazardous occupations for under-18, ARS 23-232 prohibited occupations for under-16, and ARS 23-233 hours restrictions for under-16). Third, for 16-17-year-olds, it extends even into manufacturing and mining. The ownership threshold (10% with active daily operation) is the key structural gate.

ARS 23-617(4) -- Unemployment Insurance family employment exclusion (verbatim from official source):

Citation: ARS 23-617(4)

VERIFY: https://www.azleg.gov/ars/23/00617.htm

ARS 23-902 -- Workers' comp employer coverage; "domestic servants" exception (verbatim from official source):

Citation: ARS 23-902

VERIFY: https://www.azleg.gov/ars/23/00902.htm

Note: ARS 23-902 provides no exemption for a parent employing a minor child in the parent's ordinary business operations. The "domestic servants" exemption is limited to household domestic service and does not extend to business employees -- even family members -- of an employer whose business is not domestic service. A child employed by a parent's FMC on a regular basis in the FMC's usual course of business would be a covered "worker" under ARS 23-901(6)(b) (which includes "aliens and minors legally or illegally allowed to work for hire") and subject to Arizona workers' comp.

ARS 23-901(6)(b) -- Workers' comp "employee" definition (relevant excerpt, verbatim):

Citation: ARS 23-901(6)(b)

VERIFY: https://www.azleg.gov/ars/23/00901.htm

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• No specific state minimum age for employment is enumerated in ARS 23-231 through 23-233. ARS 23-232 prohibits certain occupations for under-16; ARS 23-233 imposes hour limits on under-16. There is no ARS provision requiring court permission for under-14 employment (unlike Nevada).
• FLSA imposes the practical floor: persons under 14 may not be employed in nonagricultural work in interstate commerce except by their own parent in a business that is not mining, manufacturing, or a declared hazardous occupation (29 U.S.C. § 203(l); 29 CFR 570.126).
• ARS 23-235(A)(1)(a) exempts under-18 family employees from ARS 23-231, 23-232, and 23-233 when the qualifying relative owns 10%+ and is actively engaged in daily operations (non-manufacturing, non-mining work). This covers even under-14 family employees in Arizona for state-law purposes.

Ages 14-15 (under 16):

• Prohibited from all occupations listed in ARS 23-232 (manufacturing, processing, laundry/dry cleaning, warehousing, construction, boiler/engine rooms, elevated window washing/ladder work over 5 feet, various retail food service and agricultural hazards).
• Hours (ARS 23-233): during school sessions -- 18 hrs/week maximum, 3 hrs/day; non-school sessions -- 40 hrs/week, 8 hrs/day. Night work prohibited (after 9:30 p.m. on school nights, after 11:00 p.m. on non-school nights).
• FLSA is stricter: 3 hrs/school day, 18 hrs/school week, 8 hrs/day, 40 hrs/week, and no work before 7:00 a.m. or after 7:00 p.m. during the school year (9:00 p.m. from June 1 through Labor Day) for interstate commerce employers.
• Family exemption: ARS 23-235(A)(1)(a) removes all ARS 23-232 and 23-233 restrictions for qualifying family employment.

Ages 16-17:

• Prohibited from the 16 categories in ARS 23-231 (explosives, motor vehicle driving/outside helper, mining/quarry, logging, power-driven woodworking machines, radioactive substances, heavy hoists/elevators, power-driven metal forming/punching/shearing machines, slaughter/meatpacking/meat processing machines, bakery machines, paper products machines, clay/silica products, power-driven saws, wrecking/demolition/shipbreaking, roofing, and deep excavation/tunneling).
• No Arizona hour restrictions for 16-17-year-olds in ARS Chapter 2.
• FLSA: federal hazardous occupations (HO 1-17) apply for under-18 in interstate commerce.
• Family exemption: ARS 23-235(A)(1)(a) removes ARS 23-231 restrictions for qualifying family employment in non-manufacturing, non-mining occupations. ARS 23-235(A)(1)(b) removes ARS 23-231 restrictions even in manufacturing and mining for 16-17 qualifying family employees.

4. Work Permit Step-by-Step (logistics)

Arizona does NOT issue work permits or employment certificates.

The U.S. Department of Labor's state age certificate table lists Arizona as "Not issued." VERIFY: https://www.dol.gov/agencies/whd/state/age-certificates

There is no Arizona form to obtain, no school official to sign, and no issuing authority. This is one of the simplest administrative profiles in the Mountain West for minor employment logistics.

Employer documentation obligations: Although no work permit is required, employers of minors should retain:

1. A copy of the minor's birth certificate or other age-verification document.
2. Written records of the minor's hours worked and compensation paid (payroll records).
3. For family employment under ARS 23-235(A)(1): documentation establishing the qualifying relative's ownership percentage (10%+) and evidence of active daily engagement in operations. An operating agreement, tax return showing ownership, or corporate records are appropriate.

Parent-owned-business exemption from permit: N/A. There is no permit system to be exempt from. The family-business provisions in ARS 23-235 exempt qualifying family employees from the substantive child labor rules (hazardous occupations, hour restrictions), not from a permit requirement.

5. Relevant Case Law / Administrative Guidance

No directly on-point Arizona state case law or Attorney General opinion located as of June 29, 2026, specifically addressing family management company employment of minor children for income-shifting purposes.

Arizona Industrial Commission (ICA) -- enforcement of ARS 23-235: The ICA enforces Arizona's youth employment laws. The family-business exemption in ARS 23-235(A)(1) is administered by the ICA. The "actively engaged in daily operations" and "10% ownership" requirements are factual inquiries that the ICA would apply on audit.

Relevant administrative structure:

• The ICA may declare additional occupations hazardous (ARS 23-231, final paragraph), adding to the list of ARS 23-231 prohibited occupations by administrative action.
• Variances from ARS 23-231 (under-18 hazardous occupations) may be granted by the ICA under ARS 23-241.

VERIFY: https://www.azleg.gov/ars/23/00241.htm (variance procedure)

VERIFY: https://www.azica.gov (Arizona Industrial Commission)

6. FMC / Income-Shifting Interaction (state-specific notes)

Arizona income tax: Arizona imposes a flat income tax rate of 2.5% on all taxable income, for all filing statuses and income levels. This rate took effect for tax year 2023 and remains in effect for 2026. VERIFY: https://azdor.gov/forms/individual-income-tax-highlights VERIFY: https://azdor.gov/individuals/withholding-calculations

Standard deduction (2026):

• Single or married filing separately: $16,100
• Married filing jointly: $32,200
• Head of household: $24,150

These amounts match the 2026 federal standard deduction exactly. Arizona inflates its standard deduction annually in line with federal inflation adjustments, effectively tracking the IRC § 63 amounts. Arizona's starting point is federal Adjusted Gross Income (AGI), and Arizona generally conforms to IRC definitions of gross income. VERIFY: https://azdor.gov/forms/individual-income-tax-highlights

Income-shifting math (illustrative, not advice): A minor child employed by a parent's FMC and paid $16,100 in wages (2026) would owe no Arizona income tax (wages entirely offset by the standard deduction) and no federal income tax (wages offset by the federal standard deduction). The 2.5% Arizona flat rate only applies to taxable income above the standard deduction. This is a favorable outcome for the income-shifting strategy.

Unemployment insurance (SUTA): ARS 23-617(4) excludes from "exempt employment" service by:

• An individual in the employ of the individual's son, daughter, or spouse (any age); and
• An individual under 21 years of age in the employ of the individual's father or mother.

This means:

• Child under 21 employed by parent in a qualifying entity: SUTA excluded (ARS 23-617(4)).
• Corporate or S-corp FMC: no family exclusion in ARS 23-617(4); SUTA applies (the exclusion applies to the employment relationship, not the entity form, but Arizona's SUTA definitions follow federal FUTA structure, and the federal FUTA/SUTA family-employment exclusions require that the employer be a sole proprietorship or qualifying partnership -- not a corporation or LLC taxed as a corporation).

VERIFY: https://www.azleg.gov/ars/23/00617.htm

Workers' compensation: Arizona workers' comp (ARS Title 23, Chapter 6) covers all employers that employ workers "regularly employed in the same business or establishment under contract of hire" (ARS 23-902). The only express ARS 23-902 exemption relevant to family employment is the "domestic servants" exclusion. There is no exemption for a parent employing a minor child in the parent's business.

Practical implication: If a parent's FMC employs a minor child on a regular basis as part of the FMC's usual operations, the employer (FMC) must carry Arizona workers' comp coverage for that child. The cost is generally modest for clerical/office-based roles (low-hazard classification), but the obligation exists and must be addressed.

Caveat: A sole proprietor is not automatically an "employee" under ARS 23-901(6)(i) -- sole proprietors may elect in or out of coverage for themselves. However, the minor child is a separate worker and the election by the sole proprietor regarding their own coverage does not eliminate coverage obligations for other workers.

VERIFY: https://www.azleg.gov/ars/23/00902.htm

VERIFY: https://www.azleg.gov/ars/23/00901.htm

VERIFY: https://www.azica.gov (ICA workers' comp guidance)

7. State Implementation Playbook

1. Entity and ownership setup:
2. Structure the FMC as a single-member LLC (SMLLC) owned 100% by one parent, taxed as a disregarded entity (sole proprietorship for federal purposes). This preserves FICA/FUTA exemptions (26 U.S.C. §§ 3121(b)(3)(A), 3306(c)(5)) and the SUTA exclusion (ARS 23-617(4)).
3. The parent-owner's 100% membership interest satisfies ARS 23-235(A)(1)'s "at least ten percent" ownership threshold by a wide margin.
4. Document the parent's "active daily engagement in operations" -- maintain meeting notes, operational records, or similar evidence. The ICA could examine this threshold on audit.
5. Do not use a corporation, S-corp, or multi-member LLC (with a non-parent member) as the FMC -- this eliminates FICA/FUTA exemptions and may impair the ARS 23-617(4) SUTA exclusion.

1. Age-appropriate role mapping:
2. Under 14 (with family exemption): Under Arizona state law, ARS 23-235(A)(1)(a) removes all ARS 23-232 and 23-233 restrictions. Roles: likeness/image licensing model for marketing materials, spokesperson for age-appropriate content. The FLSA parental exemption (29 U.S.C. § 203(l)) also applies for the federal layer. Documentation of actual services performed is critical.
3. Ages 14-15: Light office work, social media content creation, photography/videography, bookkeeping data entry, digital marketing tasks. Statutory hour limits under ARS 23-233 and FLSA apply unless the family exemption (ARS 23-235(A)(1)) applies. With the exemption, hours are flexible -- but compensation must be ordinary, reasonable, and tied to actual tasks.
4. Ages 16-17: Broader task set including content strategy, website administration, customer service, research projects. ARS 23-231 prohibitions apply unless the family exemption applies. The exemption in ARS 23-235(A)(1)(a) removes ARS 23-231 restrictions for non-manufacturing, non-mining roles.

1. Permit/certificate actions:
2. No work permit required. Arizona does not issue them.
3. Maintain age documentation (birth certificate or government-issued ID copy) in the employee file.
4. For the ARS 23-235 family exemption, document: (a) the qualifying family relationship; (b) the parent's ownership percentage (10%+) and entity documents confirming active daily operation.

1. Payroll and documentation actions:
2. Run proper W-2 payroll. Issue Form W-2 annually.
3. For qualifying SMLLC FMC: no FICA (Social Security/Medicare) withholding or employer match for child under 18 (federal law); no FUTA for child under 21 (federal law); no Arizona SUTA for child under 21 (ARS 23-617(4)).
4. Withhold Arizona state income tax at 2.5% on amounts above the standard deduction ($16,100 single, 2026). A minor earning at or below the standard deduction owes no Arizona state income tax.
5. Maintain contemporaneous records: written job description, time logs with hours and tasks, compensation rate justification tied to market rates for the role.

1. State-specific filings and insurance:
2. Arizona state income tax withholding: File Arizona Form A1-QRT (quarterly withholding) and A1-R (annual reconciliation) with the Arizona Department of Revenue. A minor earning $16,100 or less (2026 single standard deduction) has $0 Arizona tax liability, but withholding filings may still be required as the employer.
3. Workers' comp: Obtain Arizona workers' comp coverage for the minor child employee. Contact the Arizona Industrial Commission (ICA) or a licensed workers' comp carrier. For low-hazard clerical/office roles, the premium is modest. The obligation exists as soon as the child is regularly employed.

VERIFY: https://www.azica.gov

• No Arizona-specific paid leave mandates apply to single-employee small businesses as of June 2026 (Arizona's Prop 206 minimum wage/sick-leave law applies to employees, but a family FMC with one or two employees should confirm current applicability with counsel).

1. Red flags and "do not do this" list:
2. Do not use a corporate or S-corp FMC -- loses FICA/FUTA exemptions and likely impairs ARS 23-617(4) SUTA exclusion.
3. Do not rely on the ARS 23-235 family exemption unless the employing relative owns at least 10% AND is actively engaged in daily operations. A purely passive parent-investor does not qualify.
4. Do not pay wages that exceed what an arm's-length employer would pay for the same tasks -- the compensation must be ordinary and reasonable, and IRS scrutiny applies under IRC § 162.
5. Do not skip workers' comp coverage for the minor employee -- Arizona has no family-employment workers' comp exemption, and operating without required coverage is a violation of ARS 23-902.
6. Do not assume the Arizona standard deduction permanently tracks the federal amount without annual confirmation -- Arizona adjusts its standard deduction by inflation annually, and the amounts could diverge if federal law changes.
7. Do not assign ARS 23-231 hazardous occupations (roofing, power-driven saws, logging, demolition, explosives, etc.) to under-18 employees even with the family exemption, unless counsel confirms ARS 23-235(A)(1)(a) applies and the activity qualifies as non-manufacturing, non-mining.

8. Sources

• [STATUTE] ARS 23-230 (definitions): https://www.azleg.gov/ars/23/00230.htm
• [STATUTE] ARS 23-231 (prohibited employments under 18): https://www.azleg.gov/ars/23/00231.htm
• [STATUTE] ARS 23-232 (prohibited employments under 16): https://www.azleg.gov/ars/23/00232.htm
• [STATUTE] ARS 23-233 (hours for under 16): https://www.azleg.gov/ars/23/00233.htm
• [STATUTE] ARS 23-235 (exemptions, including family-business exemption): https://www.azleg.gov/ars/23/00235.htm
• [STATUTE] ARS 23-241 (variance procedure): https://www.azleg.gov/ars/23/00241.htm
• [STATUTE] ARS 23-617 (UI exempt employment, family exclusion): https://www.azleg.gov/ars/23/00617.htm
• [STATUTE] ARS 23-901 (workers' comp employee definition): https://www.azleg.gov/ars/23/00901.htm
• [STATUTE] ARS 23-902 (employers subject to workers' comp): https://www.azleg.gov/ars/23/00902.htm
• [STATUTE] Arizona Title 23 Chapter 2 Article 3 (Youth Employment, full text): https://www.azleg.gov/arsDetail/?title=23
• [AGENCY GUIDANCE] Arizona Department of Revenue -- Individual Income Tax Highlights (2026 flat rate 2.5%, standard deduction): https://azdor.gov/forms/individual-income-tax-highlights
• [AGENCY GUIDANCE] Arizona Department of Revenue -- Individual Income Tax Information: https://azdor.gov/individuals
• [AGENCY GUIDANCE] Arizona Department of Revenue -- Withholding Calculations: https://azdor.gov/individuals/withholding-calculations
• [AGENCY GUIDANCE] Arizona Industrial Commission (ICA) -- youth employment enforcement and workers' comp: https://www.azica.gov
• [AGENCY GUIDANCE] U.S. DOL WHD -- State Age Certificate Table (Arizona: "Not issued"): https://www.dol.gov/agencies/whd/state/age-certificates

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Ark. Code § 11-6-104 -- Children under age 14 years prohibited from working (parent-employer exception)

Citation: Ark. Code § 11-6-104

Official URL: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-104/ (2024 Arkansas Code)

VERIFY: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-104/

Note: The official Arkansas Code is maintained by the Bureau of Legislative Research. The Justia publication mirrors the official Arkansas Code of 1987 as updated through 2024. Cross-reference at https://www.arkleg.state.ar.us/ for official enrolled acts.

VERIFY (primary source): https://www.arkleg.state.ar.us/ (search Arkansas Code Title 11, Chapter 6)

Ark. Code § 11-6-102 -- Certain children excepted from chapter (16-18 year olds)

Citation: Ark. Code § 11-6-102

Official URL: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-102/

VERIFY: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-102/

Ark. Code § 11-6-105 -- Children under age 16; restrictions on employment generally

Citation: Ark. Code § 11-6-105

Official URL: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-105/

VERIFY: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-105/

Ark. Code § 11-6-108 -- Children under age 16; hours of employment

Citation: Ark. Code § 11-6-108

Official URL: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-108/

VERIFY: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-108/

Ark. Code § 11-6-110 -- Children under age 17; hours of employment

Citation: Ark. Code § 11-6-110

Official URL: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-110/

VERIFY: https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-110/

11 CAR § 12-102 -- Arkansas Administrative Regulations: Minimum age standards (parent-employer vacation rule codified)

Citation: 11 CAR § 12-102(b)(1) (Arkansas Administrative Regulations, Title 11, Chapter III, Part 12)

Official URL: https://labor.arkansas.gov/wp-content/uploads/11CARpt.12.Child-Labor.pdf

VERIFY: https://labor.arkansas.gov/wp-content/uploads/11CARpt.12.Child-Labor.pdf

Employment Certificate Repeal -- Act 195 of 2023: Arkansas Act 195 (2023 Regular Session, signed March 8, 2023) eliminated the employment certificate requirement for minors aged 14-15. Prior to this act, 11 CAR § 12-106 required minors under 16 to obtain an employment certificate from the Director of the Division of Labor before starting work. That requirement was repealed.

VERIFY: https://www.arkleg.state.ar.us/Home/FTPDocument?path=/ACTS/2023R/Public/ACT195.pdf

Arkansas SUI family exemption -- Ark. Dept. of Workforce Services: The Arkansas Department of Workforce Services confirms on its official website:

Source: Arkansas Department of Workforce Services, Employer UI Contributions page

Official URL: https://dws.arkansas.gov/workforce-services/unemployment/employer-ui-information/employer-ui-contributions/

VERIFY: https://dws.arkansas.gov/workforce-services/unemployment/employer-ui-information/employer-ui-contributions/

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• General prohibition (Ark. Code § 11-6-104; 11 CAR § 12-102(b))
• Exception (family/parent employer): During school vacation only, may be employed by parents or guardians in occupations owned or controlled by them
• This is narrower than FLSA: the FLSA parental exemption applies year-round (not just school vacation); the Arkansas Code § 11-6-104 vacation-only restriction is stricter and controls for Arkansas-law purposes
• No employment certificate required (repealed 2023)

Ages 14-15:

• Cannot work in manufacturing, mining, processing, power-driven machinery operations, or occupations declared hazardous (11 CAR § 12 and § 11-6-105)
• Hours: max 8 hrs/day, 48 hrs/week, 6 days/week (§ 11-6-108)
• Curfew: no work before 6 a.m. or after 7 p.m.; extended to 9 p.m. on nights preceding non-school days (§ 11-6-108)
• During school: administrative regulations impose 3-hr/school-day and 18-hr/school-week limits (11 CAR § 12)
• No employment certificate required

Ages 16 (under 17):

• Hours per § 11-6-110: max 6 days/week; 54 hrs/week; 10 consecutive hrs/day; 10 hrs per 24-hour period
• Curfew: no work before 6 a.m. or after 11 p.m. (extended on nights preceding non-school days per division rule)
• Note: FLSA does not restrict hours for 16-17 year olds; Arkansas § 11-6-110 is stricter for 16 year olds

Ages 17 (under 18):

• Arkansas Code § 11-6-102 exempts those who are HS graduates, married, or parents from Chapter 6 entirely
• For non-exempt 17 year olds: same § 11-6-110 restrictions apply
• No employment certificate required

All minors under 18:

• Prohibited from hazardous occupations as declared by the Director of the Division of Labor (incorporating FLSA HO orders)
• Prohibited from saloons/bars (§ 11-6-105)

4. Work Permit Step-by-Step (logistics)

No employment certificate required in Arkansas as of 2023.

Arkansas Act 195 (2023) repealed the employment certificate requirement for minors aged 14-15. There is no age certificate or work permit system in Arkansas. Employers are not required to obtain or maintain a state-issued employment permit for minors.

Parent-owned business context: Because no permit system exists, there is no permit-exemption analysis to perform. Employers of minors should simply maintain records of ages, hours worked, and wages paid to document compliance with Arkansas child labor law.

Best practice: Even without a mandatory certificate, document:

1. Child's date of birth (proof of age on file)
2. Written job description and employment agreement
3. Hours worked (time log)
4. Wages paid (pay stubs, payroll records)

5. Relevant Case Law / Administrative Guidance

Arkansas Division of Labor (administrative regulations): The Division of Labor's 11 CAR § 12 regulations (current as posted on labor.arkansas.gov) confirm the parent-vacation exemption, incorporate FLSA hazardous occupation orders by reference, and set the school-year hour restrictions for 14-15 year olds.

VERIFY: https://labor.arkansas.gov/wp-content/uploads/11CARpt.12.Child-Labor.pdf

Arkansas DWS -- SUI family exemption: Official DWS page confirms child under 21 employed by parent sole proprietorship is excluded from SUI "employment."

VERIFY: https://dws.arkansas.gov/workforce-services/unemployment/employer-ui-information/employer-ui-contributions/

No directly on-point Arkansas state court decisions or AG opinions specifically addressing the parent-employer exemption in the FMC income-shifting context were located as of June 2026. Federal authority controls on the federal tax structure question.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: Arkansas has a state individual income tax. Arkansas does NOT conform to the federal standard deduction. Arkansas has its own, substantially lower standard deduction:

• 2026: $2,470 per taxpayer (single); $4,940 (married filing jointly) [inflation-adjusted figure carried forward from 2025; HB1066 to raise it to $4,400 did NOT pass; confirm the final 2026 amount against Arkansas DFA instructions]

This means a child earning wages from a parent-owned FMC will owe Arkansas income tax on wages above Arkansas's low standard deduction threshold, even if no federal income tax is due. For 2026, a child earning $3,000 would have approximately $530 subject to Arkansas tax at the lowest rate.

Arkansas top individual income tax rate was reduced to 3.7% retroactive to January 1, 2026 (HB1001/SB1, May 2026 special session); lower brackets apply at lower rates. The child's wages will likely fall in the lowest bracket.

VERIFY: https://www.dfa.arkansas.gov/income-tax/individual-income-tax/

Workers' Compensation: Arkansas workers' compensation law requires most employers to carry workers' comp coverage. There is no general statutory family-member exemption from Arkansas workers' comp coverage based solely on relationship. A child employed in the parent's FMC is an employee subject to Arkansas workers' comp coverage requirements.

PRACTITIONER TO CONFIRM: Whether Arkansas workers' comp law (Ark. Code § 11-9-101 et seq.) provides a family or domestic service exemption for children employed by a parent ... no statutory family exclusion confirmed from primary source; official arkcomp.gov returned DNS error at time of research ... https://www.arkcomp.gov/employees/coverage.aspx

Unemployment Insurance (SUI): The Arkansas Department of Workforce Services confirms on its official website that services performed by a minor child under 21 in a sole proprietorship owned by the child's parent are excluded from SUI "employment." This mirrors the federal FUTA structure. The exemption applies to sole proprietorships (and likely qualifying two-parent partnerships), not corporations.

VERIFY: https://dws.arkansas.gov/workforce-services/unemployment/employer-ui-information/employer-ui-contributions/

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: Use parent-owned SMLLC taxed as disregarded entity (sole proprietorship treatment for federal and Arkansas SUI purposes). Do not elect S-corp status. Arkansas SUI exemption confirmed only for sole proprietorship structure.

1. Age-appropriate role mapping:
2. Under 14: employment only during school vacation (summer, Christmas, spring break) in parent/guardian-owned occupations; nonhazardous tasks only (filing, organizing, content assistance)
3. Ages 14-15: year-round, outside school hours -- social media management, data entry, customer emails, light bookkeeping; observe 48 hr/week and 8 hr/day caps
4. Ages 16: same plus expanded roles, but observe 54 hr/week and 10 hr/day caps; midnight curfew on school nights
5. Ages 17: same, check if HS graduate (exempts from Chapter 6 entirely)

1. Permit/certificate actions: No permit or employment certificate required in Arkansas (repealed 2023, Act 195). Maintain internal records of age, hours, and wages.

1. Payroll & documentation actions:
2. Establish payroll with written job description and market-rate wages
3. Under 18: withhold federal income tax; FICA exempt under 18 (sole prop/disregarded LLC); FUTA exempt under 21
4. Arkansas state income tax: withhold Arkansas income tax per Arkansas withholding tables; child will owe Arkansas tax on wages above ~$2,470 (2026 standard deduction, single)
5. No Arkansas SUI owed for child under 21 in parent sole proprietorship
6. Issue Form W-2 at year-end; maintain time logs and pay stubs

1. State-specific filings / insurance:
2. Arkansas state income tax return required for child if income exceeds Arkansas filing threshold
3. Workers' comp: obtain coverage for child-employee (no confirmed Arkansas family exemption from coverage)
4. Arkansas SUI: not required for qualifying family employees (child under 21 in parent sole proprietorship)

1. Red flags / "do not do this" list:
2. Do NOT employ children under 14 during the school year -- Arkansas restricts parent-employment of under-14 to school vacation only (stricter than FLSA year-round exemption)
3. Do NOT allow 16-year-olds to work more than 54 hours per week or 10 hours/day (§ 11-6-110 is stricter than FLSA)
4. Do NOT operate FMC as S-corp or corporation -- SUI exemption requires sole proprietorship; FICA/FUTA exemptions require sole prop or qualifying two-parent partnership
5. Do NOT assume no Arkansas income tax is owed -- Arkansas standard deduction is very low ($2,470 single for 2026)
6. Do NOT omit payroll records and time logs

8. Sources

• [STATUTE] Ark. Code § 11-6-104 (under-14 prohibition, parent vacation exception): https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-104/
• [STATUTE] Ark. Code § 11-6-102 (16-18 exemptions): https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-102/
• [STATUTE] Ark. Code § 11-6-105 (under-16 restrictions): https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-105/
• [STATUTE] Ark. Code § 11-6-108 (under-16 hours): https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-108/
• [STATUTE] Ark. Code § 11-6-110 (under-17 hours): https://law.justia.com/codes/arkansas/title-11/chapter-6/section-11-6-110/
• [STATUTE] 11 CAR § 12 (Arkansas child labor regulations): https://labor.arkansas.gov/wp-content/uploads/11CARpt.12.Child-Labor.pdf
• [STATUTE] Act 195 of 2023 (employment certificate repeal): https://www.arkleg.state.ar.us/Home/FTPDocument?path=/ACTS/2023R/Public/ACT195.pdf
• [AGENCY GUIDANCE] Arkansas DWS SUI family exemption: https://dws.arkansas.gov/workforce-services/unemployment/employer-ui-information/employer-ui-contributions/
• [AGENCY GUIDANCE] Arkansas child labor law page: https://labor.arkansas.gov/labor/labor-standards/child-labor/
• [AGENCY GUIDANCE] Arkansas DFA individual income tax: https://www.dfa.arkansas.gov/income-tax/individual-income-tax/
• [SECONDARY] Arkansas Code Chapter 6 Table of Contents (Justia): https://law.justia.com/codes/arkansas/title-11/chapter-6/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Cal. Lab. Code § 1290 -- Minimum age / general prohibition:

Citation: Cal. Lab. Code § 1290 (emphasis in original as quoted in DLSE Pamphlet)

VERIFY: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1290.

Cal. Lab. Code § 1294 -- Prohibited occupations under 16:

Citation: Cal. Lab. Code § 1294 (amended by Stats. 1994, Ch. 1175, Sec. 8, eff. Jan. 1, 1995)

VERIFY: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1294.

Cal. Lab. Code § 1394 -- Agricultural/domestic family exemption:

Citation: Cal. Lab. Code § 1394

VERIFY: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1394.

Cal. Lab. Code § 1391 -- Hours restrictions (general employment):

Citation: Cal. Lab. Code § 1391

VERIFY: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1391.

California Unemployment Insurance Code § 631 -- Family employment exclusion:

Citation: Cal. Unemp. Ins. Code § 631; see also Cal. EDD Publication DE 231 FAM "Family Employment" (official guidance)

VERIFY: https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de231fam.pdf

Important caveat from EDD DE 231 FAM:

VERIFY: https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de231fam.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• Generally prohibited from all employment except: entertainment/theatrical under Labor Commissioner permit (Cal. Lab. Code § 1308.5); agricultural/domestic work during non-school hours at parent's premises (§ 1394); odd jobs in private homes (babysitting, lawn mowing) without permit; newspaper delivery.
• Entertainment requires Labor Commissioner Permit to Employ.

Ages 14-15 (non-entertainment, non-ag):

• School in session: max 3 hrs/school day, max 18 hrs/week, no work during school hours, 7 a.m.-7 p.m. only.
• School not in session: max 8 hrs/day, max 40 hrs/week, 7 a.m.-9 p.m. (June 1-Labor Day).
• Work permit (Permit to Employ + Permit to Work) required.
• Prohibited occupations: all Cal. Lab. Code § 1294 occupations; IWC and DLSE hazardous-occupation orders.

Ages 16-17 (non-entertainment):

• School in session: max 4 hrs/school day (with exceptions), max 48 hrs/week, not before 5 a.m. or after 10 p.m. on evenings preceding a school day; 12:30 a.m. on evenings preceding non-school day.
• School not in session: max 8 hrs/day, max 48 hrs/week.
• Work permit required. Graduated high school? Exempt from hours restrictions under § 1391.2.
• Hazardous prohibitions under federal 17 HOs apply.

4. Work Permit Step-by-Step (logistics)

California uses a two-permit system: (1) Permit to Employ (issued to employer); (2) Permit to Work (issued to the minor).

Step-by-step:

1. Minor obtains a Permit to Work from the minor's school (or district superintendent if school is not in session). Form B1-1.
2. Employer completes a Permit to Employ from the same school/district. Employer certifies the nature of work, hours, and working conditions.
3. Both permits require: minor's name/age, employer's name/address, hours and nature of work, parent/guardian signature, school certification.
4. Permits are school-year specific; they expire at the end of the school year and must be renewed.
5. Employer keeps the Permit to Employ on file at the place of employment.

Parent-owned business exemption from permit?

• Agricultural exception (§ 1394): If the work is agricultural, horticultural, viticultural, or domestic, performed at premises owned/controlled by the parent, and performed outside school hours, NO work permit is required.
• All other businesses (including a parent-owned FMC/SMLLC): Work permit IS required. Confirmed by DLSE FAQ: "even if the worker is a family member, a work permit is required for a minor." VERIFY: https://www.dir.ca.gov/dlse/faq-employment%20relationship-family.pdf

5. Relevant Case Law / Administrative Guidance

EDD Publication DE 231 FAM (Official EDD Guidance, Family Employment):

• Confirms CUIC § 631 UI/SDI/ETT exemption applies only to parent-as-sole-proprietor and qualifying partnerships. An LLC or corporation employer does not qualify. See Section 2, above.

VERIFY: https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de231fam.pdf

DLSE Child Labor FAQ:

• Confirms work permits required even for family-member minor employees. Also confirms: "you are also required to pay the minimum wage unless the employee is your spouse, parent or child and you are a sole proprietor or partnership."

VERIFY: https://www.dir.ca.gov/dlse/faq-employment%20relationship-family.pdf

California Entertainment/Coogan Rules (Cal. Fam. Code §§ 6750-6753; Cal. Lab. Code §§ 1308-1308.5): The "Coogan Law" (Cal. Fam. Code §§ 6750-6753) requires that 15% of the minor's gross entertainment earnings be set aside in a blocked trust account ("Coogan Account") established at a financial institution, independent of parental access, until the minor reaches majority. The employer is responsible for depositing 15% of gross earnings within 15 business days of payment. This is a mandatory requirement that cannot be waived.

• Cal. Fam. Code § 6750 et seq.: minor's entertainment earnings are the legal property of the minor (not the parent).

VERIFY: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FAM&sectionNum=6750.

SB 764 (2023) -- Digital/Social Media Content Creators: Effective 2024, Cal. Lab. Code § 1308.8 extends Coogan-style protections to "vloggers" who feature the minor in at least 30% of monetized content earning $1,250+/month. 65% of proportionate gross earnings must be deposited in trust. Wage and hour rules also apply to family vlogging scenarios. VERIFY: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1308.8.

No on-point CA Supreme Court case directly addressing the FMC structure for minor income shifting was located as of June 2026. Federal authority controls on FICA/FUTA; state authority controls on CA PIT, SDI, and workers' comp.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: California has a broad personal income tax with rates from 1% to 13.3% (12.3% + 1% Mental Health Services Tax surcharge above $1M). The 2026 standard deduction is $5,706 (single) / $11,412 (MFJ) -- significantly lower than the federal standard deduction of $16,100 (single) / $32,200 (MFJ) for 2026. This means a minor child's California taxable income will be meaningfully higher than their federal taxable income, reducing (but not eliminating) the income-shifting benefit at the state level. VERIFY: https://www.ftb.ca.gov/file/personal/deductions/index.html

California does NOT conform to many federal TCJA provisions. For taxable years beginning on or after January 1, 2025, California updated its conformity date to January 1, 2025 (via SB 711, enacted October 2025), but California has not conformed to the One Big Beautiful Bill Act standard-deduction enhancement or other 2025 federal changes. VERIFY: https://www.ftb.ca.gov/about-ftb/data-reports-plans/Summary-of-Federal-Income-Tax-Changes/index.html

Workers' Compensation (Labor Code § 3700): California requires ALL employers to carry workers' compensation insurance for all employees, including family members and minor children. There is NO family exemption.

VERIFY: https://www.dir.ca.gov/dlse/faq-employment%20relationship-family.pdf

A parent-owned SMLLC employing a minor child must maintain a workers' compensation policy covering the child.

Unemployment Insurance / SDI: CUIC § 631 exempts child under 18 employed by parent (sole prop or qualifying partnership) from UI, SDI, and ETT. This exemption does NOT extend to LLC or corporate employers. A Family Management Company structured as a CA SMLLC will not qualify for this exemption -- child's wages will be subject to CA SDI and ETT (and UI if the SMLLC is treated as an employer subject to the CUIC).

VERIFY: https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de231fam.pdf

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: If the FMC is structured as a CA SMLLC, the CUIC § 631 UI/SDI exemption does NOT apply. For maximum state tax treatment, a sole proprietorship or a husband-and-wife general partnership (not an LLC) would preserve CUIC § 631 exemption. Confirm with a CA-licensed CPA or attorney before establishing the entity.

1. Age-appropriate role mapping:
2. Under 14: permitted only outside school hours, for agricultural/domestic work at parent's premises without permit; or entertainment with permit. For FMC services (marketing, social media, etc.), confirm no work is performed at or connected to locations prohibited under § 1294.
3. 14-15: office work, marketing asset creation, social media management, photography assistance. Keep under 3 hrs/school day, 18 hrs/school week. Obtain work permits.
4. 16-17: broader office/admin roles, content creation, bookkeeping assistance. Keep under 4 hrs/school day, 48 hrs/week. Work permit required.

1. Permit/certificate actions:
2. Even in a parent-owned business, a Permit to Employ (employer) and Permit to Work (minor) are required unless the work qualifies under the § 1394 agricultural exception.
3. Contact the minor's school during the school year; contact the school district superintendent when school is out of session.
4. Permits must be kept on file at the place of employment.
5. Entertainment/Coogan: If any work involves social media content, modeling, or acting, confirm whether Coogan Account requirements apply. A CA-licensed entertainment attorney should review.

1. Payroll & documentation actions:
2. Pay at or above California minimum wage (2026: $16.90/hr effective January 1, 2026 for most industries; $20/hr for fast food under AB 1228).
3. Maintain detailed time records; the work permit specifies authorized hours.
4. Issue W-2; withhold CA PIT.
5. If employer entity is sole prop or qualifying partnership: CUIC § 631 exempts child's wages from CA UI/ETT/SDI -- report wages as PIT wages only on DE 9C.
6. If employer is LLC or corp: CA UI/ETT/SDI apply -- register with EDD, maintain payroll accounts.

1. State-specific filings / insurance:
2. Register with CA EDD as employer (Form DE 1 or DE 1A).
3. Obtain workers' compensation insurance (required for all employers with employees).
4. File CA DE 9 (Quarterly Contribution Return) and DE 9C (Quarterly Wage and Withholding Report).
5. Child files CA Form 540; CA standard deduction ($5,706 single for 2026) reduces their CA taxable income.
6. If Coogan rules apply, establish blocked trust account within the required timeframe.

1. Red flags / do-not-do list:
2. Do NOT skip the work permit -- it is required even in a parent-owned business for non-agricultural work.
3. Do NOT assume the LLC entity preserves CUIC § 631 -- it does not.
4. Do NOT ignore workers' compensation -- DLSE and DIR enforce this aggressively.
5. Do NOT pay wages outside of written records and payroll; informal payments destroy the tax deduction.
6. Do NOT let child perform hazardous-occupation work (§ 1294, HO list) -- no family exemption exists for hazardous occupations.
7. Do NOT forget the 10 p.m. hard stop for 16-17 year olds on school-preceding evenings.

8. Sources (every URL used)

• [STATUTE] Cal. Lab. Code § 1290: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1290.
• [STATUTE] Cal. Lab. Code § 1294: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1294.
• [STATUTE] Cal. Lab. Code § 1391: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1391.
• [STATUTE] Cal. Lab. Code § 1394: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1394.
• [STATUTE] Cal. Lab. Code § 1308.5 (entertainment): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1308.5.
• [STATUTE] Cal. Fam. Code § 6750 (Coogan): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FAM&sectionNum=6750.
• [STATUTE] Cal. Unemp. Ins. Code § 631: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=UIC&sectionNum=631.
• [AGENCY GUIDANCE] DLSE FAQ Family Employment: https://www.dir.ca.gov/dlse/faq-employment%20relationship-family.pdf
• [AGENCY GUIDANCE] EDD DE 231 FAM Family Employment: https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de231fam.pdf
• [AGENCY GUIDANCE] CA FTB Standard Deduction: https://www.ftb.ca.gov/file/personal/deductions/index.html
• [AGENCY GUIDANCE] CA FTB IRC Conformity Summary: https://www.ftb.ca.gov/about-ftb/data-reports-plans/Summary-of-Federal-Income-Tax-Changes/index.html
• [AGENCY GUIDANCE] CA DIR Entertainment Work Permit: https://www.dir.ca.gov/dlse/entertainment-work-permit.htm
• [SECONDARY] DLSE Child Labor Law Pamphlet (2013, primary agency publication): https://www.dir.ca.gov/dlse/childlaborlawpamphlet.pdf

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Governing statute: Colorado Youth Employment Opportunity Act of 1971, C.R.S. Title 8, Article 12.

Minimum age ... C.R.S. § 8-12-105(1):

Citation: C.R.S. § 8-12-105(1)

Official URL: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-105/

VERIFY: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-105/

Hours limits ... C.R.S. § 8-12-105(2)–(4):

Citation: C.R.S. § 8-12-105(2)–(4)

Official URL: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-105/

VERIFY: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-105/

Family / parent-employer exemption ... C.R.S. § 8-12-104(1):

Citation: C.R.S. § 8-12-104(1)

Official URL: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-104/

VERIFY: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-104/

Hazardous occupations prohibition ... C.R.S. § 8-12-110(1)–(2) (partial):

Citation: C.R.S. § 8-12-110(1)–(2)

Official URL: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-110/

VERIFY: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-110/

Work permit/age certificate ... C.R.S. § 8-12-111 (per secondary source confirmation; primary text not independently retrieved):

Colorado does not require work permits for minors. An employer may request an age certificate, issued by the school superintendent of the district or county where the applicant resides. A school release permit is required for any 14- or 15-year-old working during school hours (C.R.S. § 8-12-113).

Citation: C.R.S. § 8-12-111

Official URL: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-111/

VERIFY: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-111/

Workers' comp for minors ... C.R.S. § 8-12-117 (2023 amendment):

Citation: C.R.S. § 8-12-117 (as amended HB23-1196, effective July 1, 2023)

Official URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-08.pdf (see HB23-1196 text at https://leg.colorado.gov/laws/session-laws/HB23-1196/428/download)

VERIFY: https://leg.colorado.gov/laws/session-laws/HB23-1196/428/download

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14: Generally prohibited from employment. Exceptions: home chores, work for a parent or guardian (where parent receives no payment ... § 8-12-104(1)(c)), newspaper carrying (§ 8-12-104(1)(d)), certain permissible occupations at age 9 or 12 (§§ 8-12-106, 8-12-107 ... shoe shining, handbill delivery, lawn care without power equipment, babysitting at 12+).

Ages 14–15:

• May not work during school hours except under school release permit (§ 8-12-113).
• After school hours: no more than 6 hours on a school night.
• Night restriction: no work 9:30 p.m.–5 a.m. unless the next day is not a school day.
• Weekly/daily cap: 40 hours/week, 8 hours/day.
• FLSA adds: no more than 3 hours on a school day, 18 hours in a school week (FLSA is stricter on school-day hours; FLSA controls).
• Prohibited: all hazardous occupations (§ 8-12-110(2)), manufacturing, mining, logging, explosives, roofing, excavation, heavy power-driven machinery.

Ages 16–17:

• 40 hours/week, 8 hours/day cap applies (C.R.S. § 8-12-105(4)).
• No school-day hour restrictions.
• Night-work restriction lifted.
• Prohibited: all § 8-12-110(2) hazardous occupations unless qualifying training exemption.
• Motor vehicle operation permitted if licensed for such use (§ 8-12-109).

4. Work Permit Step-by-Step (logistics)

Colorado does NOT require a traditional work permit for minors.

1. Age certificate (optional, employer-requested): Employer may request proof of age. Minor obtains an age certificate from the school superintendent's office in the district or county where the minor resides. No fee typically required.

1. School release permit (required for 14–15-year-olds working during school hours only): Minor or employer applies to the school district superintendent (or designated agent). The superintendent issues the permit; it is condition-specific. Reference: C.R.S. § 8-12-113.

1. Parent-owned business: Because C.R.S. § 8-12-104(1)(c) exempts work done for a parent or guardian (where parent receives no payment therefor) from most of Article 12, there is no permit to obtain for that relationship. The hazardous-occupation prohibition (§ 8-12-110) still applies regardless.

1. FMC context: If the FMC is a single-member LLC taxed as a sole proprietorship and owned solely by a parent, the exemption analysis under § 8-12-104(1)(c) may apply ... but the critical qualifier "except where the parent or guardian receives any payment therefor" must be evaluated carefully. Consult counsel: if the FMC pays the parent/owner a management fee or salary, that changes the analysis.

5. Relevant Case Law / Administrative Guidance

No directly on-point Colorado state case law or AG opinion located as of June 29, 2026, specifically addressing family management company employment of minor children for income-shifting purposes. Federal authority (FLSA parental exemption, 29 U.S.C. § 203(l); 29 C.F.R. § 570.126) and IRS guidance control the federal layer.

Workers' comp minor cases: Torres v. Canam Industries, 942 P.2d 1384 (Colo. App. 1997) ... held that a minor is a "person under the age of twenty-one years" for workers' comp purposes. Benefits payable to minors for temporary and permanent disability. (Secondary confirmation via ALFA International compendium; primary reporter cite noted for verification.) VERIFY: https://scholar.google.com/scholar_case?q=torres+v+canam+industries+942+p2d+1384

6. FMC / Income-Shifting Interaction (state-specific notes)

FMC structure note: Colorado's § 8-12-104(1)(c) exemption covers "work done for a parent or guardian, except where the parent or guardian receives any payment therefor." A parent-owned SMLLC (FMC) paying wages to a child is the employer of record, not technically "a parent." The practical question is whether the FMC is viewed as the parent's alter ego for this purpose. In many income-shifting FMC arrangements, the parent does not take a salary from the FMC (the FMC's purpose is to pay the child), which may preserve the spirit of the exemption. This is a gray area requiring legal analysis.

State income tax: Colorado has a state income tax. Colorado uses federal taxable income as its starting point ("rolling conformity" to the IRC). This means Colorado conforms to the federal standard deduction: for 2026, $16,100 (single), $32,200 (MFJ). A child's wages earned through a family business will be offset by the federal (and thus Colorado) standard deduction at the child's level. Colorado's flat income tax rate is 4.40% (2026).

VERIFY: https://leg.colorado.gov/sites/default/files/2025-te10_report_on_federal_tax_law_provisions.pdf (confirming rolling conformity and standard deduction passthrough)

Unemployment insurance (SUTA): Colorado's UI exclusion for family employment mirrors the FUTA structure. Service by an individual for their spouse, parent employing a child, or a child under 21 employed by a parent is generally excluded from covered employment where the employer is a sole proprietorship or qualifying partnership. An FMC taxed as a corporation or S-corp loses this exclusion.

Citation: C.R.S. § 8-70-129 (2015) ... NOTE: correct section is § 8-70-129 (not § 8-70-114 which defines "employing unit"); age threshold for child is 21

Official URL: https://hermes.cde.state.co.us/islandora/object/co:29222/datastream/OBJ/download/Colorado_employment_security_act__2015.pdf

VERIFY: https://hermes.cde.state.co.us/islandora/object/co:29222/datastream/OBJ/download/Colorado_employment_security_act__2015.pdf

Note: Applies to sole proprietorships and qualifying partnerships; does not apply to corporations or S-corps.

Workers' comp: Colorado requires all employers with one or more employees to carry workers' compensation, including family members. C.R.S. § 8-12-117 expressly makes all minors, lawfully or unlawfully employed, subject to workers' comp. No family exclusion from workers' comp exists in Colorado. A parent-owned FMC employing a child must carry workers' comp coverage for that child. Rate classification will follow the actual duties performed.

VERIFY: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-117/

7. State Implementation Playbook

1. Entity and ownership setup: If the FMC is a SMLLC taxed as a disregarded entity (sole proprietorship for federal purposes), the FICA exemption (26 U.S.C. § 3121(b)(3)(A)) and FUTA exemption (26 U.S.C. § 3306(c)(5)) for child under 18 employed by parent are available. Colorado income tax follows federal; child's wages are reported and taxed at child's marginal rate (after child's own standard deduction). Note: if the FMC files as an S-corp or has a non-parent member, FICA exemption is lost.

1. Age-appropriate role mapping:
2. Age 9–11: Handbill delivery, shoe shining, lawn care (no power equipment), casual employer chores ... limited commercial application.
3. Age 12–13: Newspaper delivery, babysitting, door-to-door sales, non-hazardous agricultural work.
4. Age 14–15: Office and clerical work, social media content creation (non-hazardous), bookkeeping, data entry, light marketing tasks ... these are the core FMC roles. Hours restricted.
5. Age 16–17: Broader occupational range, including operating a licensed motor vehicle; can take on more substantive business support roles.

1. Permit/certificate actions: No work permit to obtain. If the minor is 14 or 15 and will work during school hours (unlikely for most FMC arrangements), obtain a school release permit from the district superintendent. For non-school-hours FMC work, no permit is required.

1. Payroll and documentation actions:
2. Run actual payroll (W-2 wages). No informal payments.
3. Document job description, age-appropriate tasks, hours worked, and rate of pay at arm's length.
4. Confirm the wage is reasonable and ordinary for the tasks performed.
5. File W-2 and applicable federal filings. For a SMLLC FMC, no FICA/FUTA due if child is under 18.
6. File Colorado withholding if Colorado income tax applies (child's income exceeds standard deduction threshold).

1. State-specific filings / insurance:
2. Obtain workers' comp coverage for the minor child employee. No family exemption exists in Colorado.
3. SUTA: child under 21 employed by parent in sole prop/disregarded LLC is excluded per C.R.S. § 8-70-129; does not apply to corporations or S-corps.
4. Colorado income tax withholding applies to wages above the standard deduction.

1. Red flags and "do not do this" list:
2. Do not use an S-corp or C-corp FMC if the goal is to preserve FICA/FUTA exemptions.
3. Do not pay wages that are clearly not arm's-length for the tasks performed.
4. Do not assign hazardous occupations (§ 8-12-110(2) list) to minors, even in a parent-owned business.
5. Do not assume the § 8-12-104(1)(c) exemption eliminates the § 8-12-110 hazardous occupation prohibition ... it expressly does not.
6. Do not omit workers' comp coverage for the minor.
7. Do not rely on "home chores" exemption for genuine business tasks compensated through an FMC.

8. Sources

• [STATUTE] C.R.S. § 8-12-104 (Exemptions): https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-104/
• [STATUTE] C.R.S. § 8-12-105 (Minimum age, hours): https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-105/
• [STATUTE] C.R.S. § 8-12-110 (Hazardous occupations): https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/section-8-12-110/
• [STATUTE] C.R.S. § 8-12-117 (Workers' comp for minors): https://leg.colorado.gov/laws/session-laws/HB23-1196/428/download
• [STATUTE] Colorado Article 12 full table of contents: https://law.justia.com/codes/colorado/title-8/labor-i-department-of-labor-and-employment/labor-conditions/article-12/
• [AGENCY GUIDANCE] Colorado General Assembly ... Federal Tax Conformity Report: https://leg.colorado.gov/sites/default/files/2025-te10_report_on_federal_tax_law_provisions.pdf
• [AGENCY GUIDANCE] Mesa County Youth Employment Fact Sheet (secondary, useful for summary): https://www.mesacounty.us/sites/default/files/2023-03/Youth-Law-Fact-Sheet-August-2016.pdf
• [SECONDARY] ALFA International Colorado Workers' Comp compendium: https://www.alfainternational.com/compendium/workers-compensation/colorado/
• [SECONDARY] NextInsurance ... Colorado workers' comp overview: https://www.nextinsurance.com/workers-compensation-insurance/colorado/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Hours in manufacturing for under-18:

VERIFY: https://www.cga.ct.gov/current/pub/chap_557.htm

Hours in mercantile establishments for under-18:

VERIFY: https://www.cga.ct.gov/current/pub/chap_557.htm

Night work restrictions:

VERIFY: https://www.cga.ct.gov/current/pub/chap_557.htm

Night work in restaurants, amusements, and other establishments:

VERIFY: https://www.cga.ct.gov/current/pub/chap_557.htm

Prohibition on under-16 in manufacturing and similar occupations:

VERIFY: https://www.cga.ct.gov/current/pub/chap_557.htm

Age certificate requirement:

VERIFY: https://www.cga.ct.gov/current/pub/chap_168.htm

Hazardous employment:

VERIFY: https://www.cga.ct.gov/current/pub/chap_557.htm

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14: No specific Connecticut statute permitting a parent-employer to hire a child under 14 in a commercial business was found. CGS § 31-23(a) bans under-16 from manufacturing/mechanical/mercantile. Agricultural employment, domestic service, street trades, and newspaper distribution are exempt (§ 31-23(c)).

Verified: Connecticut has NO parent-employer exception for under-14 employment in a non-agricultural commercial business.

CGS § 31-23(a) prohibits employment of any minor under 16 in manufacturing, mechanical, mercantile, theatrical, restaurant, bowling alley, shoe-shining, and barber establishments. The exceptions stated in § 31-23 are: (a) Labor Commissioner authorization for 14-15 year olds in approved work-study or summer work-recreation programs; (b) minors over 14 on vocational probation or vocational parole; (c) minors over 14 may caddie at golf courses; and (d) minors over 15 may be employed in certain limited mercantile capacities during school vacation. None of these exceptions creates a parent-employer exemption for under-14 employment in a commercial business. Connecticut law does not provide the type of broad parent-employer child labor exemption found in states like Maine (§ 771) or Vermont (§ 436).

VERIFY: https://www.cga.ct.gov/current/pub/chap_557.htm (official Connecticut General Assembly, retrieved June 29, 2026).

Ages 14-15 (CGS §§ 31-23(a), 31-12, 31-13):

Ages 16-17 enrolled in school (CGS §§ 31-12(e), 31-13(c), 31-14(a), 31-18(a)):

4. Work Permit Step-by-Step (logistics)

Connecticut uses age certificates under CGS §§ 10-193 and 31-23(d), not "work permits" per se. The certificate verifies the minor's age and, depending on the employment type, the minimum age required.

Step-by-step procedure:

1. Employer identifies employment. Determine which category applies (manufacturing/theatrical/restaurant/barber = 16+; mercantile = 15+; golf = 14+).
2. Employer applies for age certificate. The employer (or the minor acting on the employer's behalf) applies to the superintendent of schools or the superintendent's designated agent or a nonpublic school supervisory agent.
3. Superintendent verifies age and issues certificate. State Board of Education procedures govern issuance.
4. Certificate kept on file. Employer keeps the certificate at the place of employment, accessible to Connecticut DOL inspectors during business hours. (§ 31-23(d))
5. Certificate not required for municipalities. CGS § 31-23(b)(2) states "no such certificate shall be required for such minor employed by a municipality as a staff member at a youth camp or as a lifeguard."

Parent-owned-business -- no express exemption from certificate: Connecticut provides no express exemption from the § 10-193 certificate requirement for parent-owned businesses. A parent-employer in a commercial LLC must obtain the age certificate through the standard process.

5. Relevant Case Law / Administrative Guidance

Workers' compensation -- minor illegally employed: A Connecticut case note under CGS § 10-193 states: "Minor employed in violation of statute not barred from recovery under workmen's compensation act. 111 C. 229." The 2023 Workers' Compensation Act annotation confirms: "Minor employed in violation of child-labor statute is entitled to workmen's compensation. 12 CS 304."

VERIFY: https://portal.ct.gov/wcc/statutes-and-regulations/do-not-use-workers-compensation-statutes/2023-workers-compensation-act

No directly on-point Connecticut AG opinion or case law on parent-employer FMC income-shifting with minor children was located as of June 2026. Federal authority controls.

6. FMC / Income-Shifting Interaction (state-specific notes)

Entity structure note: Connecticut has the most restrictive approach among NE states for parent-employer arrangements. No broad child labor exemption. Age certificate required for all commercial employment of minors under 18. The best available path for a Connecticut parent-owned FMC is to assign the minor to tasks that fall outside the specifically restricted categories (manufacturing, mercantile, restaurant, etc.) -- such as content creation, photography, research, and light administrative work in a home office setting -- and comply with all certificate requirements.

Connecticut income tax: Connecticut has a graduated personal income tax. Connecticut does not use the federal standard deduction. Connecticut has a personal exemption system with phase-outs:

Connecticut taxable income is Connecticut adjusted gross income minus personal exemptions. The personal exemption amounts (for single filers) are approximately $15,000 (subject to phase-out for higher income). Unlike the federal standard deduction, Connecticut's exemption is lower and phases out for income above thresholds.

Connecticut income tax rates for 2026 (taxable years commencing on or after January 1, 2026, per CGS § 12-700 as amended): 2% on first $10,000 (single); 4.5% on next tier; graduated up to higher rates.

Practical note: A minor child earning wages through a Connecticut FMC will have Connecticut taxable income (after the personal exemption) subject to CT income tax at the applicable graduated rates. The income-shifting benefit at the state level is more limited than at the federal level because CT's effective standard deduction equivalent (the personal exemption) is structured differently than the federal standard deduction.

Verified: Connecticut personal exemption amounts (CGS § 12-702, TY 2025–2026):

Connecticut does not use a standard deduction. It uses a personal exemption system under CGS § 12-702. The current exemption amounts (effective January 1, 2016, as the most recent step under § 12-702(a)(2)(I)) are:

Phase-out: The exemption is reduced by $1,000 for each $1,000 (or fraction thereof) by which CT AGI exceeds the phase-out threshold. The exemption phases out completely once CT AGI exceeds the threshold by the exemption amount.

Relevant statutory text (CGS § 12-702(a)(2)(I)):

Tax year applicability: These amounts apply to tax years 2016 through the present (2025/2026), as no subsequent amendment to § 12-702 was enacted. Connecticut has not enacted a cost-of-living adjustment for personal exemptions.

Implication for minor employee: A single child filer with CT AGI under $30,000 from FMC wages retains the full $15,000 exemption. CT taxable income = CT AGI − $15,000. CT income tax rates then apply (2% on first $10,000; 4.5% on next $40,000; etc.).

VERIFY: https://www.cga.ct.gov/current/pub/chap_229.htm (official Connecticut General Assembly, retrieved June 29, 2026).

Workers' compensation (CGS § 31-275(9)(B)(iii)):

Key point: A minor child who lives with the parent-employer is excluded from Connecticut workers' compensation coverage by default. If the parent voluntarily includes the child's wages in the WC insurance payroll, the child becomes covered. This is the same structure as Vermont § 601(14)(D).

VERIFY: https://portal.ct.gov/wcc/statutes-and-regulations/do-not-use-workers-compensation-statutes/2023-workers-compensation-act

Unemployment insurance (CGS Chapter 567 and CT DOL Employer Guide):

The Connecticut SUTA exclusion for family employment:

• Covers child under 18 in the employ of a parent
• Expressly applies to parent-owned SMLLC (single-member LLC operating as sole proprietorship)
• Also covers children under 21 in the employ of a mother/father partnership or LLC with both parents as members
• Voluntary coverage of this excluded category is expressly prohibited

VERIFY: https://cga.ct.gov/2021/pub/chap_567.htm (§ 31-222(5)(A))

VERIFY: https://portal.ct.gov/dol/-/media/dol/2022-new-design-system/about/divisions/unemployment-insurance-tax/updated-employer-guide-august-14-2025.pdf

7. State Implementation Playbook

1. Entity & ownership setup: Parent-owned SMLLC (disregarded entity) OR a partnership between the two parents. Either structure qualifies for the Connecticut SUTA family exclusion. The workers' compensation family exclusion (CGS § 31-275(9)(B)(iii)) applies only if the minor child lives in the employer's house, so entity form is less determinative for WC.

1. Age-appropriate role mapping:
2. Under 14: No Connecticut commercial employment lawfully available through the FMC. Avoid.
3. 14: Golf caddie/pro shop only (CGS § 31-23(b)(1)). Very limited scope for FMC unless the business involves a golf-adjacent service.
4. 15: Can work in mercantile establishments (bagger/cashier/stock) during school vacations only, with certificate. Content creation, photography, administrative tasks in a home office are not restricted by § 31-23 (which targets the enumerated commercial categories) and may be viable with appropriate documentation.
5. 16-17: Most non-hazardous roles. Bookkeeping, social media management, content creation, marketing. School-year hour limits apply (32 hrs/week school weeks, 6 hrs/school day).

1. Permit/certificate actions:
2. For all minors under 18 in covered employment: Obtain age certificate from superintendent of schools (§ 10-193 and § 31-23(d)).
3. The certificate type required varies by employment category (manufacturing/restaurant = 16+; mercantile = 15+; golf = 14+).
4. Keep certificate on file at the workplace.
5. No certificate required for youth in regional workforce development board programs (§ 10-193(b)).

1. Payroll & documentation actions:
2. W-2 payroll mandatory.
3. Pay Connecticut minimum wage (currently $16.94/hr effective January 1, 2026, indexed annually to the employment cost index).
4. Maintain detailed time records and task documentation.
5. Connecticut income tax withholding required (CT Form CT-W4).
6. Child files Connecticut Form CT-1040 if income exceeds CT filing threshold.
7. Child uses CT personal exemption (not federal standard deduction) to shelter income at state level.

1. State-specific filings / insurance:
2. Workers' compensation: If minor child lives with parent-employer, WC coverage excluded by default (§ 31-275(9)(B)(iii)). Include wages in WC payroll to voluntarily cover the child.
3. SUTA: Parent-owned SMLLC qualifies for CGS § 31-222(5)(A) family exclusion. Voluntary inclusion of excluded family members into CT UI is prohibited by statute.
4. Connecticut paid sick leave may apply depending on employer size.

1. Red flags and "do not do this" list:
2. Do NOT employ a child under 14 in any Connecticut commercial business -- CGS § 31-23 does not provide a parent-employer exception for commercial establishments.
3. Do NOT employ under-16 in manufacturing, mechanical, mercantile, restaurant, bowling, or barber establishments.
4. Do NOT skip the age certificate for any minor under 18 in covered employment.
5. Do NOT employ the child in any CGS § 31-24 hazardous occupation or federal HO 1-17 occupation.
6. Do NOT convert the FMC to an S-corp or C-corp -- this ends FICA/FUTA exemptions and removes the Connecticut SUTA family exclusion.
7. Do NOT pay wages after 10 p.m. on school nights without confirming the applicable exception applies.
8. Do NOT assume the Connecticut income tax calculation mirrors the federal standard deduction analysis -- CT uses its own personal exemption structure.

8. Sources

• [STATUTE] CGS § 31-12 (Hours in manufacturing for under-18): https://www.cga.ct.gov/current/pub/chap_557.htm
• [STATUTE] CGS § 31-13 (Hours in mercantile establishments): https://www.cga.ct.gov/current/pub/chap_557.htm
• [STATUTE] CGS § 31-14 (Night work of minors): https://www.cga.ct.gov/current/pub/chap_557.htm
• [STATUTE] CGS § 31-18 (Night work, restaurants and amusements): https://www.cga.ct.gov/current/pub/chap_557.htm
• [STATUTE] CGS § 31-23 (Prohibited occupations; age certificates): https://www.cga.ct.gov/current/pub/chap_557.htm
• [STATUTE] CGS § 31-24 (Hazardous employment of children): https://www.cga.ct.gov/current/pub/chap_557.htm
• [STATUTE] CGS § 10-193 (Age certificates): https://www.cga.ct.gov/current/pub/chap_168.htm
• [STATUTE] CGS § 31-275(9)(B)(iii) (Workers' comp family exclusion): https://portal.ct.gov/wcc/statutes-and-regulations/do-not-use-workers-compensation-statutes/2023-workers-compensation-act
• [STATUTE] CGS § 31-222(5)(A) (SUTA family exclusion): https://cga.ct.gov/2021/pub/chap_567.htm
• [AGENCY GUIDANCE] CT DOL Employer's Guide to Unemployment Compensation (Aug. 2025): https://portal.ct.gov/dol/-/media/dol/2022-new-design-system/about/divisions/unemployment-insurance-tax/updated-employer-guide-august-14-2025.pdf
• [SECONDARY] 2023 CT Workers' Compensation Act (case annotations on minors): https://portal.ct.gov/wcc/statutes-and-regulations/do-not-use-workers-compensation-statutes/2023-workers-compensation-act

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Del. Code tit. 19, § 501 ... Applicability; and § 502 ... Definitions and exclusions from "employment"

And further:

Exclusions from the definition of "employment":

Citation: Del. Code tit. 19, § 501 (Child Labor chapter definitions and exclusions) Official URL: https://delcode.delaware.gov/title19/c005/index.html VERIFY: https://delcode.delaware.gov/title19/c005/index.html

KEY NOTE: This is the most business-friendly family exemption among the six Mid-Atlantic jurisdictions. Work by a child in a "business owned by a parent" in a nonhazardous occupation is simply not "employment" under Delaware's Child Labor Act ... the Act does not apply. No employment certificate is required, and the hours and age provisions of the Act do not govern such work.

Del. Code tit. 19, § 505 ... Minimum age

Citation: Del. Code tit. 19, § 505 (Prohibited employment; minimum age) Official URL: https://delcode.delaware.gov/title19/c005/index.html VERIFY: https://delcode.delaware.gov/title19/c005/index.html

Note on interaction with parent-owned business exclusion: The § 505 minimum age prohibition applies to "employment" as defined ... which excludes parent-owned business work. In practice, a child under 14 performing nonhazardous work in a parent-owned business is outside the Act entirely. However, sound practice and federal FLSA rules still apply.

Del. Code tit. 19, § 506 ... Prohibited occupations for minors under 16

Citation: Del. Code tit. 19, § 504 Official URL: https://delcode.delaware.gov/title19/c005/index.html VERIFY: https://delcode.delaware.gov/title19/c005/index.html

NOTE: Because the parent-owned-business exclusion applies only to nonhazardous occupations, and § 503 defines hazardous for under-16, an FMC's parent must ensure all tasks performed by the minor are non-hazardous.

Del. Code tit. 19, § 506 ... Hours for under 16

Citation: Del. Code tit. 19, § 506(d)–(e) Official URL: https://delcode.delaware.gov/title19/c005/index.html VERIFY: https://delcode.delaware.gov/title19/c005/index.html

Del. Code tit. 19, § 507 ... Prohibited occupations for minors under 18

Citation: Del. Code tit. 19, § 507 Official URL: https://delcode.delaware.gov/title19/c005/index.html VERIFY: https://delcode.delaware.gov/title19/c005/index.html

Del. Code tit. 19, § 504 ... Work permit requirement

Citation: Del. Code tit. 19, § 504 Official URL: https://delcode.delaware.gov/title19/c005/index.html VERIFY: https://delcode.delaware.gov/title19/c005/index.html

NOTE: Since parent-owned business work is excluded from the definition of "employment," the work permit requirement of § 504 does not apply to such work. This is the key benefit of Delaware's structure.

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (general rule)

• Prohibited from employment (§ 505)
• Exception for parent-owned business in nonhazardous occupation (§ 501 exclusion from "employment")
• FLSA parental exemption also applies (but federal minimum age rules still govern)

14–15

• Max 4 hrs/school day; max 8 hrs non-school day; max 18 hrs/school week; max 40 hrs/vacation week; max 6 days/week (§ 506(d))
• No work before 7 a.m. or after 7 p.m. (9 p.m. June 1 through Labor Day) (§ 503(e))
• No power-driven machinery (except office machines), no construction, no excavation, no meat slicers, fryers, boilers (§ 506(a))
• All federal FLSA HOs incorporated by reference (§ 506(a)(2))

16–17

• Daily combined school + work: max 12 hrs; at least 8 consecutive non-work/non-school hours per day (§ 507(b)–(c))
• Max 5 continuous work hours without 30-min break (§ 507(d))
• No docks, railroads, electrical wire erection, distilleries, dangerous chemical manufacturing, blast furnaces (§ 507(a))
• All federal FLSA HOs incorporated by reference (§ 507(a)(1))

4. Work Permit Step-by-Step (logistics)

If the work falls within the parent-owned-business exclusion (§ 502(2)c.): No work permit is required ... the Act's employment definition does not apply.

If the work does NOT fall within the exclusion (e.g., minor reaches 18, or hazardous work):

1. Minor applies for work permit from the school district superintendent or authorized designee, OR from the Department of Labor
2. Proof of age required: certified birth certificate; baptismal certificate; school record; passport; valid driver's license; or other official government document (§ 506)
3. Permit issued by superintendent or DOL
4. Employer keeps permit on file at all times; accessible to DOL upon request (§ 506)
5. Permit may be revoked by the Director of Division of Industrial Affairs (§ 506)

Parent-owned-business exemption from permit: YES. As explicitly stated in Delaware's official Child Labor Law booklet (DE DOL): "Work performed in a business owned by a parent or one legally standing in the place of a parent in a nonhazardous occupation" is excluded from coverage ... no permit required.

Source: https://laborfiles.delaware.gov/main/dia/olle/Child%20Labor%20Law%20Booklet.pdf VERIFY: https://laborfiles.delaware.gov/main/dia/olle/Child%20Labor%20Law%20Booklet.pdf

5. Relevant Case Law / Administrative Guidance

No directly on-point Delaware state case law located as of June 29, 2026 addressing FMC income-shifting and the parent-owned business exclusion.

DE DOL Child Labor Law Booklet (official): Confirms the parent-owned business exclusion applies to "a business owned by a parent or one legally standing in the place of a parent in a nonhazardous occupation." Available at: https://laborfiles.delaware.gov/main/dia/olle/Child%20Labor%20Law%20Booklet.pdf

VERIFY: https://laborfiles.delaware.gov/main/dia/olle/Child%20Labor%20Law%20Booklet.pdf

6. FMC / Income-Shifting Interaction (state-specific notes)

FMC structure interaction:

• Delaware's explicit parent-owned business exclusion from the definition of "employment" means the Child Labor Act does not apply to a minor's work in a parent's FMC in nonhazardous occupations
• This is the most favorable child labor law structure among the six jurisdictions for FMC purposes
• Hours, age, and permit requirements under the Child Labor Act do not govern such work; FLSA minimums still apply
• Hazardous occupations are never exempt ... any FMC task involving equipment or activities classified as hazardous under the FLSA HOs is not protected by the exclusion

State Income Tax Delaware has a graduated personal income tax (Del. Code tit. 30, § 1102), with rates from 0% to 6.6% (tax year 2026).

Standard deduction: Delaware uses its own standard deduction ... NOT the federal amount.

• Single filer / married filing separate: $3,250
• Married filing jointly: $6,500

Citation: Del. Code tit. 30, § 1108

VERIFY: https://law.justia.com/codes/delaware/title-30/chapter-11/subchapter-ii/section-1108/

Implication for minor employee: A child filing independently with $10,000 earned from the FMC would have DE taxable income of approximately $6,750 ($10,000 minus $3,250 standard deduction), which falls in the 4.6%–5.55% bracket range ... roughly $310–$375 in DE income tax. The federal standard deduction ($16,100 for 2026 single filer) entirely offsets this, but Delaware's smaller standard deduction means some state tax is owed.

Workers' Compensation Delaware Workers' Compensation Act (Del. Code tit. 19, ch. 23) covers "employees" broadly. The definition of "employee" in the workers' comp chapter (§ 2301(10)) excludes "the spouse of minor children of a farm employer unless the spouse or minor child is a bona fide employee of a farm employer and is named in an endorsement to the farm employer's contract of insurance."

Note: This farm-specific exception suggests that in non-farm contexts, minor children employed by a parent (even in a parent-owned business) ARE covered employees for workers' comp purposes unless they fall within a specific exclusion. The child labor Act exclusion from "employment" does not automatically carry over to the workers' comp statute.

Verified text of Del. Code tit. 19, § 2301(10) (the Delaware workers' comp employee definition):

Key finding for non-farm FMC: The only family exclusion in Delaware workers' compensation is for farm employers. There is no general exclusion for a non-agricultural sole proprietor or LLC parent employing a minor child in a commercial FMC. A minor child employed by a parent in a commercial (non-farm) FMC in Delaware is a covered employee for workers' compensation purposes and the parent/employer must carry WC insurance.

VERIFY: https://delcode.delaware.gov/title19/c023/sc01/index.html (official Delaware Code Online, retrieved June 29, 2026).

State Unemployment Insurance (DE SUTA) Delaware UI law (Del. Code tit. 19, § 3302) likely mirrors federal FUTA with a family employment exclusion for minor children of parent sole proprietors. Verify exact text.

Verified text of 19 Del. C. § 3302(15)(C) (the Delaware SUTA family-employment exclusion):

Key points: (1) Delaware excludes from "employment" (and therefore SUTA) services by a child under 18 in the employ of the child's father or mother. (2) The statute uses "father or mother" without specifying entity type; FUTA conditionality governs. For an SMLLC disregarded entity, FUTA § 3306(c)(5) provides the federal exemption, so the Delaware SUTA exclusion applies. For an S-corp, C-corp, or LLC taxed as a corporation, the exclusion does not apply. Confirm SMLLC treatment with Delaware Division of Unemployment Insurance.

VERIFY: https://delcode.delaware.gov/title19/c033/sc01/index.html (official Delaware Code Online, retrieved June 29, 2026).

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Parent-owned sole proprietorship or SMLLC (disregarded entity). Delaware's child labor Act exclusion for parent-owned business work applies to an unincorporated business owned by a parent ... confirm that the SMLLC is treated as owned by the parent (disregarded entity status preserves this). Avoid S-corp or multi-member LLC for FICA/FUTA exemption preservation.

1. Age-appropriate role mapping:
2. Any age: nonhazardous work in parent-owned business is excluded from the Act; however, FLSA minimums still apply (minimum age of 14 for nonhazardous non-ag employment under FLSA)
3. 14–15: social media, photography, content creation, admin, bookkeeping ... entirely outside DE Child Labor Act for nonhazardous tasks; no permit required
4. 16–17: same breadth; no permit required for parent-owned business nonhazardous work

1. Permit/certificate actions: NOT required for work in parent-owned business in nonhazardous occupation under DE law. Document this explicitly in employment records with a reference to Del. Code tit. 19, § 502(2)c.

1. Payroll & documentation: Even though no work permit is required, maintain thorough payroll records, written job descriptions, time logs, and payment records to support the legitimacy of the wage deduction and FMC strategy.

1. State-specific filings / insurance: File DE personal income tax return (Form 200-01) for minor if income exceeds the filing threshold. Confirm workers' comp and UI status for minor. DE state income tax at graduated rates with $3,250 standard deduction ... budget approximately $300–$500 in DE state tax per $10,000 earned.

1. Red flags / "do not do this" list:
2. Do not assume the Child Labor Act exemption covers hazardous occupations ... it does not
3. Do not assume federal FLSA parental exemption is broader than DE law ... FLSA minimums still apply (no child under 14 in non-ag non-hazardous jobs without the FLSA parent exception)
4. Do not confuse the Child Labor Act exclusion with a workers' comp or UI exemption ... those are separate statutes with separate rules
5. Do not pay wages without legitimate documentation just because no work permit is required

8. Sources (every URL used)

• [STATUTE] Del. Code tit. 19, Ch. 5 (Child Labor): https://delcode.delaware.gov/title19/c005/index.html
• [STATUTE] Del. Code tit. 30, § 1108 (DE standard deduction): https://law.justia.com/codes/delaware/title-30/chapter-11/subchapter-ii/section-1108/
• [STATUTE] Del. Code tit. 19, Ch. 23 (Workers' Comp): https://delcode.delaware.gov/title19/c023/sc01/
• [AGENCY GUIDANCE] DE DOL Child Labor Law Booklet: https://laborfiles.delaware.gov/main/dia/olle/Child%20Labor%20Law%20Booklet.pdf
• [SECONDARY] Delaware standard deduction amount: https://smartasset.com/taxes/delaware-tax-calculator

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

D.C. Code § 32-201 ... Employment of minors under 14; housework/agricultural exemption

Citation: D.C. Code § 32-201 Official URL: https://code.dccouncil.gov/us/dc/council/code/sections/32-201 VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-201

KEY NOTE: The exemption in § 32-201 is strictly limited to "housework... in the home of the minor's parent or legal guardian" and "agricultural work... directly for the minor's parent or legal guardian." Work for a parent's FMC or commercial enterprise is NOT covered by this exemption.

D.C. Code § 32-202 ... Employment of minors under 18; hours restrictions

Citation: D.C. Code § 32-202 Official URL: https://code.dccouncil.gov/us/dc/council/code/sections/32-202 VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-202

D.C. Code § 32-203 ... Employment dangerous or prejudicial to life prohibited

Citation: D.C. Code § 32-203 Official URL: https://code.dccouncil.gov/us/dc/council/code/sections/32-203 VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-203

D.C. Code § 32-204 ... Prohibited occupations under 16

Citation: D.C. Code § 32-204 Official URL: https://code.dccouncil.gov/us/dc/council/code/sections/32-204 VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-204

D.C. Code § 32-207 ... Work permit procurement; irregular/casual home work exception

Citation: D.C. Code § 32-207 Official URL: https://code.dccouncil.gov/us/dc/council/code/sections/32-207 VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-207

KEY NOTE: The § 32-207 permit exception for "irregular or casual work usual to the home of the employer" is explicitly limited to work that is NOT "in connection with nor form a part of the business, trade, profession, or occupation of the employer." An FMC is a business ... work for the FMC is part of the business. This exception does not apply.

D.C. Code § 32-208 ... Work/vacation permit issuance by Board of Education

Citation: D.C. Code § 32-208 Official URL: https://code.dccouncil.gov/us/dc/council/code/sections/32-208 VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-208

D.C. Code § 32-209 ... Work permit application requirements

Citation: D.C. Code § 32-209 Official URL: https://code.dccouncil.gov/us/dc/council/code/sections/32-209 VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-209

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14

• No gainful employment outside the narrow housework/agricultural parent exemption (§ 32-201)
• Newspaper distribution permitted for minors 10 and over (§ 32-201)
• Theatrical permits possible under § 32-206

14–15 (under 16)

• No work before 7 a.m. or after 7 p.m. (9 p.m. June 1 through Labor Day) (§ 32-202)
• Max 8 hrs/day; max 48 hrs/week; max 6 consecutive days (§ 32-202)
• No power-driven machinery (except hand/foot power) (§ 32-204)
• No cleaning/oiling/wiping of machinery (§ 32-204)
• All FLSA HOs incorporated (§ 32-203)

16–17

• No work before 6 a.m. or after 10 p.m. (§ 32-202)
• Max 8 hrs/day; max 48 hrs/week; max 6 consecutive days (§ 32-202)
• All § 32-203/204 prohibitions on dangerous/hazardous work apply
• FLSA HOs incorporated by reference (§ 32-203)

4. Work Permit Step-by-Step (logistics)

DC work permits are issued by the DC Board of Education (now DC Public Schools/OSSE in practice).

1. Minor applies in person to the Board of Education (§ 32-209)
2. Required documents:
3. Employer statement: prospective employer signs, describing occupation, hours/day and days/week (§ 32-209(1))
4. Evidence of age (§ 32-209(2), per § 32-210)
5. For minors under 16: written parental/guardian consent (§ 32-209(3))
6. For minors under 16 withdrawing from school: school record signed by principal, certifying 8th grade completion (§ 32-209(4)); parent must appear in person
7. For minors under 16: physician's certificate of physical fitness for the specified employment (§ 32-209(5))
8. Board of Education issues permit ... states employer, occupation, minor's identifying information, signed by minor in presence of issuing officer, mailed or delivered to employer (§ 32-208)
9. Employer keeps permit on file and accessible to inspectors (§ 32-207)
10. Permit is employer-specific and occupation-specific ... not valid for any other employer or occupation (§ 32-208)

Parent-owned-business exemption from permit? NO. The § 32-207 exception for irregular/casual home work is explicitly limited to work not forming part of the employer's business or trade. An FMC is a business ... its activities are not "irregular or casual work usual to the home." No permit exemption exists for parent-owned commercial businesses in DC.

VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-207

5. Relevant Case Law / Administrative Guidance

No directly on-point DC case law located as of June 29, 2026 addressing FMC income-shifting and child labor requirements in the District.

DC OFR/DOES Guidance: The DC Department of Employment Services (DOES) administers youth employment in DC. DOES's Youth Employment Program and the DC Mayor's Youth Employment website may have guidance on work permit procedures. See: https://does.dc.gov/

VERIFY: https://does.dc.gov/

Federal authority controls on FLSA parent exemption scope. DC, as a federal district, has close alignment with federal authorities.

6. FMC / Income-Shifting Interaction (state-specific notes)

FMC structure interaction:

• DC has NO exemption for parent-owned commercial businesses from child labor requirements
• Work permits required for all FMC employment of minors under 18
• Hours and hazardous occupation rules apply fully
• The most restrictive jurisdiction among the six reviewed

State Income Tax (DC) DC has a graduated income tax (D.C. Code § 47-1806 et seq.).

Standard deduction: DC passed temporary legislation (effective for tax years beginning after December 31, 2024) conforming DC's standard deduction to the federal standard deduction under IRC § 63(c).

Per Thomson Reuters (reporting on DC enactment):

Citation: DC temporary legislation (Tax Year 2025 Emergency Amendment Act); Thomson Reuters Tax & Accounting News: https://tax.thomsonreuters.com/news/d-c-enacts-temporary-legislation-amending-conformity-with-various-irc-provisions-other-tax-changes/ VERIFY: https://tax.thomsonreuters.com/news/d-c-enacts-temporary-legislation-amending-conformity-with-various-irc-provisions-other-tax-changes/

CRITICAL TAX NOTE: DC provides a relatively generous DC-set standard deduction ($15,000 for single filers, 2025-2026), favorable versus NY/NJ/PA/MD/DE ... but it is a DC statutory amount (D.C. Code § 47-1801.04), NOT federal conformity; the federal single standard deduction is $16,100 for 2026. This means a minor child earning $15,000 or less from the FMC may owe zero DC income tax for 2026 (assuming no other income), while owing federal income tax only to the extent earnings exceed the $16,100 federal standard deduction. This is a significant income-shifting advantage compared to NY, NJ, PA, MD, and DE.

IMPORTANT CAVEAT: This was enacted as temporary/emergency legislation for 2025. Its continuation for subsequent tax years must be monitored. Verify current DC Code at https://code.dccouncil.gov/us/dc/council/code/titles/47/ before applying.

Verified: DC standard deduction conformity status for tax years 2025 and beyond.

For tax year 2025: D.C. Code § 47-1801.04(44)(A)(v) (as amended by temporary legislation) defines the standard deduction for a single filer as the sum of the "basic standard deduction" (as defined separately) plus the IRC § 63(c)(3) additional standard deduction. The temporary legislation (effective through September 25, 2026) defines the "basic standard deduction" for TY 2025 as $15,000 for a single filer (or MFS), $22,500 for head of household, and $30,000 for MFJ/surviving spouse, with COLA adjustments for subsequent years.

For tax years 2026 and beyond (permanent-law baseline): The permanent version of D.C. Code § 47-1801.04(44) (Perm.) already provides that for all taxable years beginning after December 31, 2017, the standard deduction is "the standard deduction as prescribed in section 63(c) of the Internal Revenue Code of 1986." This means full federal conformity is the permanent-law baseline. The temporary legislation layered on top adds DC-specific COLA-adjusted amounts; when that temporary layer expires (September 25, 2026), the permanent IRC § 63(c) conformity resumes.

Practical conclusion for TY 2026+: DC standard deduction will revert to the IRC § 63(c) federal amount (e.g., $16,100 for single filers in 2026; adjusted annually) unless the DC Council enacts new permanent legislation. The conformity is permanent at the baseline; the COLA-adjustment structure is what was temporary. Practitioners should confirm whether the DC Council enacts permanent COLA legislation before TY 2026 filing.

VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/47-1801.04 (temporary/current version, note expiration September 25, 2026) and https://code.dccouncil.gov/us/dc/council/code/sections/47-1801.04(Perm) (permanent baseline version) (official DC Law Library, retrieved June 29, 2026).

Workers' Compensation (DC) DC Workers' Compensation Act (D.C. Code § 32-1501 et seq.) covers employees broadly. No blanket family/parent exemption from DC workers' comp has been confirmed from primary source review.

Verified: DC workers' compensation (D.C. Code § 32-1501) has NO family-employment exclusion.

D.C. Code § 32-1501(9) defines "Employee" as:

There is no exclusion for family members or for a minor child employed by a parent. A minor child employed by a parent in a DC-based FMC is a covered employee under DC WC law. The employer must carry DC workers' compensation coverage.

VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/32-1501 (official DC Law Library, retrieved June 29, 2026).

State Unemployment Insurance (DC UI) DC UI is administered by the DC Department of Employment Services. D.C. Code § 51-101 et seq. A family employment exclusion for minor children of parent sole proprietors likely exists paralleling federal FUTA, but specific text must be verified.

Verified text of D.C. Code § 51-101 (the DC UI family-employment exclusion):

Key points: (1) DC excludes from "employment" (and SUTA) services by a child under age 21 in the employ of the child's father or mother. (2) The statute says "father or mother" without entity-type qualifier. For an SMLLC disregarded entity FMC, the parent is the employer for FUTA purposes and the FUTA exemption (FUTA § 3306(c)(5)) applies, so the DC UI exclusion should also apply. For an S-corp, C-corp, or LLC taxed as a corporation, the exclusion does not apply. Confirm SMLLC treatment with DC Department of Employment Services before relying on this exclusion.

VERIFY: https://code.dccouncil.gov/us/dc/council/code/sections/51-101 (official DC Law Library, retrieved June 29, 2026).

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Parent-owned sole proprietorship or SMLLC (disregarded entity). DC has no blanket exemption for parent-owned businesses ... the entity type is less determinative for child labor purposes, though it matters for FICA/FUTA/SUTA purposes. Avoid S-corp or corp structure if preserving federal FICA exemption.

1. Age-appropriate role mapping:
2. Under 14: only housework at parent's home or agricultural work for parent at home ... NO FMC commercial work
3. 14–15: social media, content creation, light admin, photography ... obtain work permit; comply with hours (max 8 hrs/day, 48/week; before 7 a.m. and after 7 p.m. prohibited)
4. 16–17: expanded tasks; still need work permit; hours max 8/day, 48/week; no work before 6 a.m. or after 10 p.m.

1. Permit/certificate actions: Minor must apply in person to DC Board of Education/DOES. For under-16: bring employer statement, proof of age, parental consent, school record, physician's fitness certificate. Process the permit before the minor begins work. Permit is employer- and occupation-specific.

1. Payroll & documentation: Run genuine payroll; document specific tasks and hours. For 2026, DC standard deduction ($15,000, COLA-adjusted) substantially offsets DC income tax on earnings up to that amount ... a significant planning advantage. Monitor DC legislation for 2026 and beyond.

1. State-specific filings / insurance: File DC D-40 personal income tax return for minor; carry workers' comp (no confirmed family exemption); confirm DC UI obligations. Note the DC unincorporated business franchise tax (applicable to sole proprietorships with gross receipts over $12,000).

1. Red flags / "do not do this" list:
2. Do not attempt to apply the § 32-207 irregular/casual home work exception to FMC employment ... FMC work is "part of the business, trade, profession, or occupation of the employer" and is explicitly excluded from that exception
3. Do not skip the work permit ... DC child labor enforcement is active
4. Do not assume the 2025 DC standard deduction conformity extends automatically to 2026 and beyond ... it was enacted as temporary legislation; verify annually
5. Do not allow a minor under 14 to work for the FMC in a commercial capacity; only parent-home housework/agricultural work is exempt for under-14

8. Sources (every URL used)

• [STATUTE] D.C. Code § 32-201 (minors under 14): https://code.dccouncil.gov/us/dc/council/code/sections/32-201
• [STATUTE] D.C. Code § 32-202 (hours restrictions): https://code.dccouncil.gov/us/dc/council/code/sections/32-202
• [STATUTE] D.C. Code § 32-203 (dangerous employment prohibited): https://code.dccouncil.gov/us/dc/council/code/sections/32-203
• [STATUTE] D.C. Code § 32-204 (prohibited occupations under 16): https://code.dccouncil.gov/us/dc/council/code/sections/32-204
• [STATUTE] D.C. Code § 32-206 (theatrical permits): https://code.dccouncil.gov/us/dc/council/code/sections/32-206
• [STATUTE] D.C. Code § 32-207 (work permit; irregular/casual home work exception): https://code.dccouncil.gov/us/dc/council/code/sections/32-207
• [STATUTE] D.C. Code § 32-208 (permit issuance by Board of Education): https://code.dccouncil.gov/us/dc/council/code/sections/32-208
• [STATUTE] D.C. Code § 32-209 (permit application requirements): https://code.dccouncil.gov/us/dc/council/code/sections/32-209
• [AGENCY GUIDANCE] DC DOES youth employment: https://does.dc.gov/
• [SECONDARY] Thomson Reuters on DC standard deduction conformity 2025: https://tax.thomsonreuters.com/news/d-c-enacts-temporary-legislation-amending-conformity-with-various-irc-provisions-other-tax-changes/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Fla. Stat. § 450.021(1)(c) ... Parent-Employer Exemption (minimum age)

Citation: Fla. Stat. § 450.021(1)(c) (2023)

Official URL: https://www.flsenate.gov/Laws/Statutes/2023/450.021

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/450.021

Fla. Stat. § 450.021(3) ... General Minimum Age

Citation: Fla. Stat. § 450.021(3) (2023)

Official URL: https://www.flsenate.gov/Laws/Statutes/2023/450.021

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/450.021

Fla. Stat. § 450.081(5)(e) ... Hours-Restriction Exemption for Parent-Employed Children

Citation: Fla. Stat. § 450.081(5)(e) (current)

Official URL: https://www.flsenate.gov/Laws/Statutes/2023/450.081

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/450.081

This provision is the operative state-law hook for the FMC strategy: a child employed by a parent-owned business is carved out of Florida's own hour restrictions (§ 450.081(5)(e)). The federal FLSA hazardous-occupation rules still apply regardless.

Fla. Stat. § 450.045(1) ... Proof of Age (Work Documentation)

Citation: Fla. Stat. § 450.045(1) (2023)

Official URL: https://www.flsenate.gov/Laws/Statutes/2023/450.045

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/450.045

Fla. Stat. § 450.061(1) ... Hazardous Occupations Prohibited for Minors 15 and Under

Fla. Stat. § 450.061(2) ... Hazardous Occupations Prohibited for Minors Under 18

Citation: Fla. Stat. § 450.061 (2023)

Official URL: https://www.flsenate.gov/Laws/Statutes/2023/450.061

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/450.061

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (ages 12-13): May not be employed in any gainful occupation except domestic or farm work for their own parents/guardian, or as pages in the Legislature. Fla. Stat. § 450.021(1) and (3).

Ages 14-15 (school year):

• Not before 7 a.m. or after 7 p.m. when school is scheduled the next day
• No more than 3 hours on any school day (unless not in a career education program)
• No more than 15 hours in any one school week

Ages 14-15 (holidays/summer vacation):

• Not before 7 a.m. or after 9 p.m.
• No more than 8 hours per day
• No more than 40 hours per week

Ages 16-17 (school year):

• Not before 6:30 a.m. or after 11:00 p.m.
• No more than 8 hours on a day when school is scheduled the next day
• No more than 30 hours per school week

All minors 17 and under:

• No more than 6 consecutive days in one week
• No more than 4 hours continuous work without a 30-minute meal break

Source: Fla. Stat. § 450.081 (2023), https://www.flsenate.gov/Laws/Statutes/2023/450.081

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/450.081

Note: These hour restrictions do NOT apply to "minors employed by their parents" per § 450.081(5)(e). All hazardous-occupation bans still apply.

4. Work Permit Step-by-Step (logistics)

Florida does not issue work permits. The employer (including a parent-employer) must:

1. Obtain and retain proof of the child's age before employment begins (birth certificate photocopy, driver license photocopy, school-board age certificate, or passport/visa photocopy).
2. Post the Child Labor Law notice in a conspicuous location at the place of employment (provided by the FL Division of Workers' Compensation upon request).
3. Maintain the age-documentation file for the entire period of employment.

Parent-owned-business note: The age-documentation requirement applies equally to parent employers. However, because the hour restrictions do not apply when a parent employs their own child (§ 450.081(5)(d)), the documentation step is still required but the scheduling constraints that apply to non-family employers do not govern.

Source: Fla. Stat. § 450.045 (2023)

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/450.045

5. Relevant Case Law / Administrative Guidance

No directly on-point state case law or Florida AG opinion located specifically addressing parent-employer FMC income-shifting arrangements as of June 2026. The FLSA parental exemption and federal tax rules govern this structure; Florida law adds only the hour-restriction exemption cited above.

The Florida Division of Workers' Compensation administers the child labor program. The DOL Wage and Hour Division enforces the FLSA federally.

6. FMC / Income-Shifting Interaction (state-specific notes)

State income tax: Florida has NO individual income tax. The prohibition is constitutional (Florida Constitution, Art. VII, § 5), in place since 1924. There is no state standard deduction to conform to, no state withholding on wages, and no state filing requirement for individuals. A minor child earning wages in Florida owes zero state income tax on those earnings, regardless of amount. There is no Florida standard deduction issue to analyze.

FMC structure note: The FMC should be structured as a sole proprietorship or a husband-and-wife partnership (or an SMLLC disregarded to a sole-proprietor parent) to preserve the federal FICA/FUTA parental exemption (26 U.S.C. § 3121(b)(3)(A); 26 U.S.C. § 3306(c)(5)). Florida imposes no state payroll taxes on earned wages.

Workers' Compensation (Fla. Stat. Ch. 440): Non-construction employers with 4 or more employees must carry workers' comp. A parent-employer FMC with fewer than 4 total employees (counting corporate officers) is below the threshold. Corporate officers and LLC members may elect an exemption by filing a Notice of Election to be Exempt online with the Florida Division of Workers' Compensation (MyFloridaCFO.com/Division/WC). The exemption is valid for 2 years. However, once the employer has 4+ employees, coverage is mandatory and the child/minor employee must be covered.

VERIFY: https://www.myfloridacfo.com/division/wc/employer/coverage-requirements

State Unemployment Insurance (SUTA): Florida's Reemployment Assistance (RA) law generally mirrors the federal FUTA framework. Services performed by a child under 21 in the employ of a parent are excluded from "employment" under Florida's RA law when the employer is the parent in a sole proprietorship context (consistent with federal exclusion). Employers should confirm specific exclusion language with the Florida Department of Economic Opportunity.

Citation: Fla. Stat. § 443.1216(13)(d) (2023)

Official URL: https://www.flsenate.gov/Laws/Statutes/2023/443.1216

VERIFY: https://www.flsenate.gov/Laws/Statutes/2023/443.1216

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Use a sole proprietorship or a husband-and-wife partnership SMLLC disregarded entity. Do NOT use a corporation or S-corp as the employing entity if preserving the federal FICA/FUTA parental exemption is a goal. Florida has no state-specific entity requirement for this purpose.

1. Age-appropriate role mapping:
2. Any age (with parental supervision): domestic/administrative tasks at home office (filing, organization)
3. 14+: social media management, content creation, model/likeness work for the parent's brand, light office work, data entry
4. 16-17: bookkeeping assistance, customer correspondence, graphic design work

1. Permit/certificate actions: No work permit required. Before the first day of work, obtain and file one of the four acceptable age-verification documents under § 450.045(1). Keep the document on file for the entire employment period.

1. Payroll and documentation actions:
2. Issue W-2 wages (not 1099); pay by check or direct deposit
3. Withhold federal income tax; do not withhold FICA if child is under 18 and employer is a parent-owned sole prop or husband-wife partnership
4. Keep time records showing actual hours and dates worked
5. Keep job description documentation linking tasks to legitimate business purpose

1. State-specific filings: Florida has no state income tax filing. If workers' comp coverage is required (4+ employees), register with Florida Division of Workers' Comp. Post the child labor law notice provided by the state.

1. Red flags and "do not do this" list:
2. Do not place the child in any occupation listed in § 450.061(2) (hazardous occupations for under-18) ... the parent-employer exemption does not override hazardous-occupation bans
3. Do not pay wages that exceed the fair market value for the work performed
4. Do not fail to maintain the age-documentation file; the employer is still technically required to keep it even for a parent-child arrangement
5. Do not incorporate or elect S-corp status if the primary goal is preserving FICA/FUTA exemption ... those exemptions disappear the moment the entity is a corporation

8. Sources (every URL used)

• [STATUTE] Fla. Stat. § 450.021 (minimum age, parent exemption): https://www.flsenate.gov/Laws/Statutes/2023/450.021
• [STATUTE] Fla. Stat. § 450.061 (hazardous occupations): https://www.flsenate.gov/Laws/Statutes/2023/450.061
• [STATUTE] Fla. Stat. § 450.081 (hours of work, parent exemption from hours): https://www.flsenate.gov/Laws/Statutes/2023/450.081
• [STATUTE] Fla. Stat. § 450.045 (proof of age requirement): https://www.flsenate.gov/Laws/Statutes/2023/450.045
• [STATUTE] Fla. Stat. § 450.161 (career education exceptions): https://www.flsenate.gov/Laws/Statutes/2023/450.161
• [STATUTE] Florida Constitution Art. VII, § 5 (no income tax): https://www.flsenate.gov/Laws/Constitution#A07
• [AGENCY GUIDANCE] Florida Division of Workers' Compensation ... coverage requirements: https://www.myfloridacfo.com/division/wc/employer/coverage-requirements
• [AGENCY GUIDANCE] Florida Division of Workers' Compensation ... exemptions: https://www.myfloridacfo.com/division/wc/employer/exemptions
• [SECONDARY] Florida Chapter 450 full text via Online Sunshine: https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499%2F0450%2F0450.html

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

O.C.G.A. § 39-2-9 ... Under-12 Prohibition and Parent-Employer Exemption

Citation: O.C.G.A. § 39-2-9

Official URL: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-9/

VERIFY: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-9/

Primary source (Georgia General Assembly): https://advance.lexis.com/ (Georgia Code available through official GA legislature site at https://galeg.gov)

O.C.G.A. § 39-2-1 ... General Restriction on Employment in Mills/Factories Under 16

Citation: O.C.G.A. § 39-2-1 (2023)

Official URL: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-1/

VERIFY: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-1/

O.C.G.A. § 39-2-2 ... Commissioner May Declare Dangerous Occupations

Citation: O.C.G.A. § 39-2-2

Official URL: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-2/

VERIFY: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-2/

O.C.G.A. § 39-2-3 ... Nightwork Restriction Under 16

Citation: O.C.G.A. § 39-2-3

Official URL: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-3/

VERIFY: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-3/

O.C.G.A. § 39-2-11(a) ... Employment Certificate Required for Ages 12-15

Citation: O.C.G.A. § 39-2-11(a)

Official URL: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-11/

VERIFY: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-11/

Georgia Department of Labor ... Official Confirmation of Parent-Employer Exemption

Source: Georgia Department of Labor, "Child Labor Law Exceptions" (official agency page)

URL: https://dol.georgia.gov/child-labor-law-exceptions

VERIFY: https://dol.georgia.gov/child-labor-law-exceptions

This is agency-level guidance, not a verbatim statute, but it is an official government source confirming the interpretation.

O.C.G.A. § 34-8-35(n)(3) ... Unemployment Insurance Exclusion for Family Employment

[This subsection is listed under the "excluded service" provisions of the Georgia Employment Security Law]

Citation: O.C.G.A. § 34-8-35(n)(3)

Official URL: https://law.justia.com/codes/georgia/title-34/chapter-8/article-2/section-34-8-35/

VERIFY: https://law.justia.com/codes/georgia/title-34/chapter-8/article-2/section-34-8-35/

3. Hours / Prohibited Occupations for Minors (by age band)

Under 12: May not be employed in any gainful occupation except for a parent/guardian, or in agriculture, or domestic service in a private home. O.C.G.A. § 39-2-9.

Ages 12-15:

• No work in mills, factories, laundries, manufacturing establishments, or workshops (§ 39-2-1)
• No work in occupations declared hazardous by the Commissioner of Labor (§ 39-2-2)
• No work between 9:00 p.m. and 6:00 a.m. (§ 39-2-3)
• No work during school hours (§ 39-2-4)
• Employment certificate required from the issuing school authority (§ 39-2-11)
• Hours generally tracked to FLSA: no more than 3 hours/school day, 18 hours/school week, 8 hours/non-school day, 40 hours/non-school week for ages 14-15 (FLSA governs where Georgia has no explicit state limit)

Ages 16-17:

• No state hour restriction; the FLSA does not restrict hours for 16-17 year-olds
• No work in hazardous occupations declared by the Commissioner of Labor or under the FLSA's 17 Hazardous Orders
• Georgia follows the federal FLSA framework for 16-17 year-olds

Source: O.C.G.A. §§ 39-2-1 through 39-2-7, https://law.justia.com/codes/georgia/title-39/chapter-2/

VERIFY: https://law.justia.com/codes/georgia/title-39/chapter-2/

4. Work Permit Step-by-Step (logistics)

Standard procedure (ages 12-15, non-family employment):

1. Minor secures a job offer from the prospective employer (the employer must provide a statement describing the type of employment and confirming the minor could be hired upon receipt of a certificate).
2. Minor submits to the issuing officer: (a) a certified copy of the birth certificate or birth registration card; (b) the employer's statement.
3. Issuing officer verifies enrollment and good standing in school or home study program.
4. Issuing officer issues the employment certificate in writing.
5. Issuing officer also provides a letter confirming current school enrollment and satisfactory attendance; this letter must be renewed in January of each subsequent academic year during employment.
6. The employer maintains the certificate and letter on file.

Source: O.C.G.A. § 39-2-11(a)-(c)

VERIFY: https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-11/

Parent-owned-business note: The Georgia DOL states that working for a parent who owns the business is "exempt from state child labor laws." If this exemption covers the certificate requirement (as stated by the DOL), then the above steps are not required when a parent employs their own child. However, because the statutory text of § 39-2-11 refers to "any person, firm, or corporation" without an explicit parent carve-out, conservative practice is to obtain the certificate anyway or to seek a written exemption confirmation from the Georgia DOL before proceeding without one.

5. Relevant Case Law / Administrative Guidance

No directly on-point Georgia state case law located as of June 2026 specifically addressing parent-employer FMC income-shifting arrangements. Federal authority (FLSA, 26 U.S.C. §§ 3121 and 3306) controls on federal payroll tax matters.

The Georgia Department of Labor's "Child Labor Law Exceptions" page (https://dol.georgia.gov/child-labor-law-exceptions) constitutes official administrative guidance confirming the parent-employer exemption from state child labor laws.

The Georgia code notes: "Working for a parent/guardian who owns the business are exempt from all but the hazardous/prohibited occupation restrictions" (confirmed by Georgia Employment Poster guidance). This aligns with O.C.G.A. § 39-2-9's language.

6. FMC / Income-Shifting Interaction (state-specific notes)

State income tax: Georgia has a flat individual income tax. The rate is 4.99% for tax year 2026 (reduced from 5.19% under HB 463, effective January 1, 2026), with further scheduled reductions toward a 3.99% floor over 2027–2034 if revenue triggers are met. Georgia has its own standard deduction ... $12,000 for single filers and $24,000 for married-filing-jointly for tax year 2026 (scheduled to rise to $15,000 single / $30,000 MFJ on January 1, 2027) ... which does NOT conform to the federal standard deduction ($16,100 single / $32,200 MFJ for 2026). Georgia's 2022 reform (HB 1437) eliminated the personal exemption; the state now provides the standard deduction plus a dependent exemption ($4,000 per dependent for 2026, rising to $5,000 on January 1, 2027). A minor child earning wages in Georgia will owe Georgia income tax on wages above the Georgia standard deduction. Because Georgia's deduction is lower than the federal deduction, state taxable income may exist even when federal taxable income is zero.

VERIFY tax rate and deduction: https://dor.georgia.gov/taxes/individual-taxes/georgia-individual-income-tax-overview

Unemployment Insurance (Georgia Employment Security Law): O.C.G.A. § 34-8-35(n)(3) excludes from "employment": "service performed by a child under the age of 21 years in the employ of his or her father or mother." This mirrors the federal FUTA exemption. The exclusion applies when the employing entity is the parent operating as an individual (sole proprietor) or qualifying partnership. Employment through a corporation does not qualify for this exclusion. VERIFY: https://law.justia.com/codes/georgia/title-34/chapter-8/article-2/section-34-8-35/

Workers' Compensation (O.C.G.A. Title 34, Ch. 9): Georgia requires workers' comp for employers with 3 or more employees regularly in service (O.C.G.A. § 34-9-2). An FMC with the parent plus two or more children employees would be at or above the threshold. There is no specific family-member exemption from workers' comp in Georgia comparable to some other states. Children of corporate officers/LLC members may elect officer-exemption (Form WC-10) but must be an actual corporate officer or LLC member to do so. A minor child employee who is not an officer or member cannot self-exempt. VERIFY: https://sbwc.georgia.gov/frequently-asked-questions/workers-compensation-law-faqs

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Use a sole proprietorship or a husband-and-wife partnership SMLLC to preserve the federal FICA/FUTA parental exemption and the Georgia UI exclusion. If using an LLC, do not elect corporate taxation. The parent must be the owner; if the minor is made a member or officer, different rules apply.

1. Age-appropriate role mapping:
2. Ages 12-13 (parent-employed, exempt from general restrictions): administrative filing, digital content creation, social media tasks, data entry, light organizational work
3. Ages 14-15: above plus customer service support, graphic design, photography/video editing for the business
4. Ages 16-17: above plus bookkeeping assistance, client research, any non-hazardous business function

1. Permit/certificate actions: If relying on the Georgia DOL parent-employer exemption to skip the § 39-2-11 certificate, document that reliance in writing (keep a copy of the DOL guidance page, dated). Alternatively, the simplest defensive approach for ages 12-15 is to obtain the certificate anyway through the school's issuing officer. For ages 16+, no certificate is required.

1. Payroll and documentation actions:
2. Issue W-2 wages; withhold federal income tax; do not withhold FICA if child under 18 employed by parent sole prop/partnership
3. Register for Georgia withholding with the Georgia Department of Revenue (even if the child owes minimal or no state tax, withholding registration may be required)
4. Keep detailed time records; keep a written job description
5. Georgia income tax withholding on wages is required regardless of age

1. State-specific filings: Register as an employer with the Georgia Department of Revenue for withholding (form CR-001). File Georgia W-2s. The child will likely need to file a Georgia return if wages exceed the Georgia standard deduction. Georgia eliminated the personal exemption under HB 1437; a dependent claimed on the parents' return is instead accounted for through Georgia's dependent exemption ($4,000 per dependent for 2026), and the child files against the Georgia standard deduction ($12,000 single for 2026).

1. Red flags and "do not do this" list:
2. Do not place the child in a mill, factory, laundry, or manufacturing environment under age 16 (§ 39-2-1 ... no exception for parent-employers on hazardous occupations)
3. Do not employ a minor under 16 between 9:00 p.m. and 6:00 a.m.
4. Do not rely on the corporate officer workers' comp exemption unless the child actually holds an officer or LLC member position (and weigh the impact on FICA/FUTA exemption)
5. Do not assume Georgia conforms to the federal standard deduction; the state's own lower deduction means the child will owe Georgia state tax on a portion of wages

8. Sources (every URL used)

• [STATUTE] O.C.G.A. § 39-2-9 (parent-employer exemption): https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-9/
• [STATUTE] O.C.G.A. § 39-2-1 (restriction on under-16 in mills): https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-1/
• [STATUTE] O.C.G.A. § 39-2-2 (hazardous occupations): https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-2/
• [STATUTE] O.C.G.A. § 39-2-3 (nightwork restriction): https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-3/
• [STATUTE] O.C.G.A. § 39-2-11 (employment certificates): https://law.justia.com/codes/georgia/title-39/chapter-2/section-39-2-11/
• [STATUTE] O.C.G.A. § 34-8-35(n)(3) (UI family employment exclusion): https://law.justia.com/codes/georgia/title-34/chapter-8/article-2/section-34-8-35/
• [AGENCY GUIDANCE] Georgia DOL Child Labor Law Exceptions: https://dol.georgia.gov/child-labor-law-exceptions
• [AGENCY GUIDANCE] Georgia State Board of Workers' Compensation FAQs: https://sbwc.georgia.gov/frequently-asked-questions/workers-compensation-law-faqs
• [SECONDARY] Georgia Title 39 Chapter 2 section index: https://law.justia.com/codes/georgia/title-39/chapter-2/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

HRS § 390-2 -- Employment of minors under 18:

Citation: HRS § 390-2

VERIFY: https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-2/

HRS § 390-5 -- FAMILY/PARENT EXEMPTION (KEY PROVISION):

Citation: HRS § 390-5 (L 1969, c 162, pt of §2; gen ch 1985; am L 2003, c 61, §4)

VERIFY: https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-5/

HRS § 390-3 -- Certificates of employment and age:

Citation: HRS § 390-3 (L 1969, c 162, pt of §2; gen ch 1985)

VERIFY: https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-3/

HRS § 390-1 -- Definition of "Theatrical employment" (amended by Act 173, 2025):

Citation: HRS § 390-1 (as amended by Act 173, H.B. 874, signed June 4, 2025)

VERIFY: https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-1/

VERIFY (Act 173 enrolled): https://data.capitol.hawaii.gov/sessions/session2025/bills/HB874_CD1_.HTM

HRS § 383-7(a)(5) -- Unemployment Insurance family employment exclusion (VERIFIED):

Citation: HRS § 383-7(a)(5) (L 1939 through L 2012)

VERIFY: https://law.justia.com/codes/hawaii/title-21/chapter-383/section-383-7/

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (parent/guardian employer exemption (§ 390-5(1)) applies):

• For ALL other employers: only theatrical employment or coffee harvesting permitted under § 390-2(d) and HAR §§ 12-25-22 through 12-25-24 with DLIR certificate.
• For parent/guardian employer: Chapter 390 does not apply; no statutory minimum age under § 390-5(1) (subject to adult entertainment and hazardous occupation carve-outs).

Ages 14-15 (non-parent employer):

• School in session: max 3 hrs/school day, max 18 hrs/week, 7 a.m.-7 p.m.
• School not in session: max 8 hrs/day, max 40 hrs/week, 6 a.m.-9 p.m.
• Max 5 consecutive hours without 30-minute break.
• Max 6 consecutive days.
• Certificate of Employment (Form CL-1) required.

Ages 16-17 (non-parent employer):

• Hours: only during non-school periods (no specific hour cap beyond school attendance requirements).
• Certificate of Age (eCL-3) required.
• Cannot work in hazardous occupations declared by DLIR director.

Theatrical employment hours (HAR § 12-25-23 -- under 16):

• Under 6: max 2 hrs/day, not after 7 p.m.
• 6-9 years: max 3 hrs/day, school night max 8:30 p.m., non-school night max 10:30 p.m.
• 10-13 years: max 4 hrs/day, school night max 8:30 p.m.
• 14-15: max 8 hrs/day, school night max 9:30 p.m., non-school night max 11:30 p.m.

Hazardous occupations: All federal FLSA hazardous occupation orders apply. DLIR additionally declares specific Hawaii occupations hazardous under HAR § 12-25-41. No under-18 employment in adult entertainment (HRS § 390-2(a)).

4. Work Permit Step-by-Step (logistics)

For minors ages 14-15 (non-parent employer):

1. Employer obtains Application for Minor's Certificate of Employment (Form CL-1) from DLIR Wage Standards Division or online.
2. Form must be completed and signed by both the employer AND a parent or guardian of the minor.
3. Submit completed form with acceptable proof of age to DLIR (in person, mail, or fax; original required for certificate issuance).
4. If approved (work not hazardous, not during school hours), DLIR issues a temporary authorization slip and mails the Certificate of Employment (CL-1) to the employer.
5. A new certificate is required for each new employer or new occupation.
6. Employer keeps certificate on file; returns to DLIR upon termination.

For minors ages 16-17 (non-parent employer):

1. Minor applies ONLINE for Certificate of Age (eCL-3) through DLIR.
2. No employer or job offer needed to obtain the eCL-3.
3. Certificate is valid until the minor turns 18.
4. At hiring, employer: (a) verifies name and birth date against acceptable proof of age; (b) records eCL-3 number; (c) returns certificate and proof-of-age document to the minor.

Parent/guardian employer (HRS § 390-5(1)): HRS § 390-5 exempts employment by the minor's parent or legal guardian from the entire chapter. Because the certificate requirement is part of Chapter 390, the exemption should cover the certificate requirement. However, DLIR guidance broadly states "work permit required for all under-18." To be safe: contact DLIR Wage Standards Division (808-586-8777) before relying on the § 390-5 exemption to skip the certificate. VERIFY: https://labor.hawaii.gov/wsd/child-labor/

5. Relevant Case Law / Administrative Guidance

Hawaii DLIR Wage Standards Division (official guidance): DLIR confirms the two-certificate system; describes hours for 14-15 year olds; notes the parent/guardian exception for theatrical employment and other contexts. VERIFY: https://labor.hawaii.gov/wsd/child-labor/

HAR § 12-25-22 (official admin rule -- theatrical employment for under-14):

VERIFY: https://labor.hawaii.gov/wsd/files/2013/01/12-25.pdf

HRS § 390-2 (case law note from Justia):

This case confirms Hawaii employment contracts with minors are not automatically voidable under the infancy doctrine in the employment context.

Hawaii Act 173 (HB 874, enacted June 4, 2025 -- VERIFIED): Governor Josh Green signed HB 874 into law on June 4, 2025 (Act 173). The law:

1. Adds "social media influencer" to the definition of "theatrical employment" in HRS § 390-1.
2. Requires a parent or legal guardian to establish a trust account (with an independent third-party trustee) before a minor's first theatrical employment when gross earnings will meet or exceed $5,000 on a single project or $20,000 in a calendar year.
3. Requires the employer to deposit at least 15% of the minor's gross earnings into the trust account until the minor reaches majority.
4. Misappropriation of trust funds is a breach of fiduciary duty subject to civil penalties and criminal prosecution.

VERIFY: https://governor.hawaii.gov/newsroom/office-of-the-governor-news-release-gov-green-signs-bills-to-protect-earnings-of-youth-performers/

VERIFY: https://legiscan.com/HI/bill/HB874/2025

No directly on-point Hawaii Supreme Court case or AG opinion on FMC-style minor income shifting was located as of June 2026.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: Hawaii has a broad personal income tax with nine brackets from 1.4% to 11%. The Hawaii standard deduction for 2026 is:

• $4,400 (single or MFS)
• $8,800 (MFJ or surviving spouse)
• $6,424 (head of household)

These amounts are dramatically lower than the federal standard deduction ($16,100 single / $32,200 MFJ for 2026). The child's Hawaii taxable income will be significantly higher than federal, reducing (but not eliminating) the income-shifting benefit. Hawaii does NOT conform to the federal standard deduction. VERIFY: https://tax.hawaii.gov/tax-year-information/ VERIFY: https://law.justia.com/codes/hawaii/title-14/chapter-235/section-235-2-4/

Workers' Compensation: Hawaii requires workers' compensation coverage for all employees. There is no family employment exemption. A parent employing a minor child must obtain workers' compensation coverage. VERIFY: https://labor.hawaii.gov/dcd/

Unemployment Insurance (VERIFIED): HRS § 383-7(a)(5) (verified from Justia official code) excludes from Hawaii UI "employment" the following service: "service performed by a child under the age of twenty-one in the employ of the child's father or mother." This means that wages paid by a parent employer to a child under age 21 are not subject to Hawaii SUTA. The Hawaii Department of Labor & Industrial Relations UI division confirms family employment as an exclusion on its official Coverage Exclusions page: "Family employment (parents, spouse, or children under 21 years of age in the employ of the child's father or mother)." VERIFY: https://law.justia.com/codes/hawaii/title-21/chapter-383/section-383-7/ VERIFY: https://labor.hawaii.gov/ui/coverage-exclusions/

Act 173 / Social Media Influencer Trust Account Interaction: If the minor child's social media or content creation work meets the $5,000/project or $20,000/year threshold, the parent/guardian must establish the trust account before the first engagement. This applies even within a parent-employer FMC structure. The trust account requirement is not waived by the HRS § 390-5(1) parent/guardian exemption (§ 390-5 provides a carve-out that the theatrical/trust provisions survive; Act 173's trust account sections are added to Chapter 390). VERIFY: https://data.capitol.hawaii.gov/sessions/session2025/bills/HB874_CD1_.HTM

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: For maximum protection under HRS § 390-5(1), the employing entity should be the parent personally (sole proprietorship) or a partnership of two parents. An LLC may complicate the "parent or legal guardian" employer analysis under § 390-5(1). For federal FICA/FUTA and Hawaii SUTA: sole proprietorship ensures both the federal exemptions and the HRS § 383-7(a)(5) state UI exclusion apply cleanly. Confirm entity structure with a Hawaii-licensed attorney.

1. Age-appropriate role mapping:
2. Under 14: HRS § 390-5(1) exempts all employment by the parent -- no minimum age for parent-employer. Outside school hours and non-hazardous work only (§ 390-5 proviso). Document all work.
3. 14-15: social media management, marketing support, photography, light administrative work. If parent employer: § 390-5 exemption applies; consider obtaining Certificate of Employment as a best-practice documentation measure. Hours: match the 14-15 limits as a reference even if technically exempt.
4. 16-17: broader roles. Obtain Certificate of Age as documentation best practice.
5. Social media influencer work at any age: if earnings will exceed $5,000/project or $20,000/year, the Act 173 trust account requirement applies.

1. Permit/certificate actions:
2. For parent employer relying on § 390-5(1): confirm DLIR position on certificate requirement by calling DLIR Wage Standards Division (808-586-8777).
3. For all other employer structures (any non-parent employer): certificates are mandatory.
4. For theatrical employment (including social media work under Act 173): establish trust account with independent third-party trustee before first engagement if earnings threshold will be met.

1. Payroll & documentation actions:
2. Pay at or above Hawaii minimum wage (2026: $16.00/hr).
3. Issue W-2; withhold Hawaii state income tax.
4. Maintain time records, job descriptions, pay stubs.
5. Workers' comp: obtain coverage before first day of work.
6. SUTA: HRS § 383-7(a)(5) exclusion applies for child under 21 employed by parent -- no SUTA owed on wages.

1. State-specific filings / insurance:
2. Hawaii workers' comp: contact Hawaii Department of Labor, Disability Compensation Division.
3. Hawaii UI: HRS § 383-7(a)(5) family employment exclusion applies -- wages to child under 21 employed by parent are excluded from Hawaii SUTA.
4. Child files Hawaii Form N-11; Hawaii standard deduction ($4,400 single for 2026) -- child will have Hawaii taxable income starting at a low threshold.
5. Act 173 trust account: if applicable, establish trust with independent third-party trustee; employer deposits 15% of gross earnings quarterly.

1. Red flags / do-not-do list:
2. Do NOT assume § 390-5(1) eliminates the need for any documentation -- verify with DLIR.
3. Do NOT permit the child to work in adult entertainment or hazardous occupations under any circumstances (§ 390-5 retains those prohibitions).
4. Do NOT ignore Hawaii's very low standard deduction when projecting state tax savings.
5. Do NOT skip workers' comp.
6. Do NOT miss the Act 173 (2025) trust account requirement for social media influencer and theatrical employment once earnings thresholds are met -- this is now law.
7. Do NOT assume SUTA is owed -- HRS § 383-7(a)(5) provides a confirmed exclusion for parent-employer.

8. Sources (every URL used)

• [STATUTE] HRS § 390-2: https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-2/
• [STATUTE] HRS § 390-3: https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-3/
• [STATUTE] HRS § 390-5: https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-5/
• [STATUTE] HRS § 390-1 (definitions, as amended by Act 173): https://law.justia.com/codes/hawaii/title-21/chapter-390/section-390-1/
• [STATUTE] HRS § 383-7(a)(5) (UI family employment exclusion -- VERIFIED): https://law.justia.com/codes/hawaii/title-21/chapter-383/section-383-7/
• [STATUTE] HRS § 235-2.4 (standard deduction): https://law.justia.com/codes/hawaii/title-14/chapter-235/section-235-2-4/
• [AGENCY GUIDANCE] Hawaii DLIR Wage Standards Division Child Labor: https://labor.hawaii.gov/wsd/child-labor/
• [AGENCY GUIDANCE] Hawaii DLIR UI Coverage Exclusions (confirms HRS § 383-7 family exclusion): https://labor.hawaii.gov/ui/coverage-exclusions/
• [AGENCY GUIDANCE] HAR Chapter 12-25 (Child Labor admin rules): https://labor.hawaii.gov/wsd/files/2013/01/12-25.pdf
• [AGENCY GUIDANCE] Hawaii Tax Year Information (standard deduction 2025): https://tax.hawaii.gov/tax-year-information/
• [AGENCY GUIDANCE] Hawaii Governor's Office -- Act 173 signing announcement: https://governor.hawaii.gov/newsroom/office-of-the-governor-news-release-gov-green-signs-bills-to-protect-earnings-of-youth-performers/
• [STATUTE] Act 173 (HB 874 CD1 -- enrolled): https://data.capitol.hawaii.gov/sessions/session2025/bills/HB874_CD1_.HTM
• [SECONDARY] LegiScan -- Hawaii HB 874 (2025) status (Act 173, enacted June 4, 2025): https://legiscan.com/HI/bill/HB874/2025
• [SECONDARY] Hawaii Public Radio -- Governor signs child performers bill: https://www.hawaiipublicradio.org/local-news/2025-06-05/governor-signs-bill-to-protect-child-performers-alongside-lilo-stitch-star

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Governing statute: Idaho Code Title 44, Chapter 13 (Child Labor Law). Official URL: https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/

Minimum age restrictions ... Idaho Code § 44-1301 (verbatim):

Citation: Idaho Code § 44-1301

Official URL: https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/SECT44-1301/

VERIFY: https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/SECT44-1301/

Hours of labor ... Idaho Code § 44-1304 (verbatim):

Citation: Idaho Code § 44-1304

Official URL: https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/SECT44-1304/

VERIFY: https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/SECT44-1304/

Note on FLSA preemption of Idaho hours: Idaho Code § 44-1304 permits 54 hours/week and 9 hours/day for under-16 workers. FLSA is significantly more restrictive (3 hrs/school day, 18 hrs/school week, 8 hrs/day, 40 hrs/week for 14–15 year olds in interstate commerce businesses). FLSA controls where applicable.

Unemployment insurance family exclusion ... Idaho Code § 72-1316A(1)–(2) (verbatim):

Citation: Idaho Code § 72-1316A(1)–(2)

Official URL: https://law.justia.com/codes/idaho/title-72/chapter-13/section-72-1316a/

VERIFY: https://law.justia.com/codes/idaho/title-72/chapter-13/section-72-1316a/

Additional UI guidance from Idaho DOL confirms:

Source: Idaho DOL Handbook on UI Tax Information (https://www.labor.idaho.gov/wp-content/uploads/2025/11/Handbook_Tax-information_Nov.-2025-1.pdf)

VERIFY: https://www.labor.idaho.gov/wp-content/uploads/2025/11/Handbook_Tax-information_Nov.-2025-1.pdf

Workers' comp family household exemption (Idaho Industrial Commission): Idaho workers' comp requires coverage for all employees with one or more full-time, part-time, seasonal, or occasional employees unless specifically exempt. Exempt employments relevant to FMC contexts include:

• "Household domestic service."
• "Employment of family members dwelling in the employer's household (applies only to sole proprietorships and single member limited liability companies who are taxed as a sole proprietorship)."

Source: Idaho Industrial Commission, "Facts for Employers" (official publication)

Official URL: https://iic.idaho.gov/wp-content/uploads/2021/09/Facts-for-Employers.pdf

VERIFY: https://iic.idaho.gov/wp-content/uploads/2021/09/Facts-for-Employers.pdf

Additionally, effective 1997, Idaho law allows a family member employee of a sole proprietorship (related within first degree of consanguinity, not residing in the household) to file an election for exemption from workers' comp (IC Form 53). VERIFY: https://iic.idaho.gov/wp-content/uploads/2018/01/ic_53_declaration_instructions.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• Prohibited from mines, factories, workshops, mercantile establishments, stores, offices, laundries, restaurants, hotels, or distribution of merchandise/messages (§ 44-1301).
• May not work during school hours or before 6 a.m. or after 9 p.m.
• Children 12+ may work during school vacations of 2+ weeks at occupations mentioned in the chapter.
• FLSA parental exemption (29 U.S.C. § 203(l)) applies for parent-employer in interstate commerce: child under 16 may work for a parent in a non-manufacturing, non-mining, non-declared-hazardous occupation.

Ages 14–15 (Idaho-specific):

• Idaho Code § 44-1304: no more than 54 hours/week, 9 hours/day; not before 6 a.m. or after 9 p.m.
• FLSA (stricter): 3 hrs/school day, 18 hrs/school week, 8 hrs/day, 40 hrs/week (for interstate commerce employers); FLSA controls.
• Prohibited: federal HOs for 14–15 (manufacturing, mining, heavy equipment, etc.).

Ages 16–17:

• No Idaho statutory hour limits for 16–17-year-olds beyond the general school-attendance obligation.
• FLSA: no hour limits for 16+.
• Federal HOs for under-18 (17 categories) apply for interstate commerce employers.

4. Work Permit Step-by-Step (logistics)

Idaho does NOT require work permits or employment certificates for minors.

Title 44, Chapter 13 contains no permit system. The statutes prohibit certain employments and hours; enforcement is complaint-driven through the Idaho Department of Labor.

Parent-owned business / FMC:

• No Idaho child labor statute explicitly exempts work for a parent employer. The FLSA parental exemption (29 U.S.C. § 203(l)) provides the operative protection for businesses in interstate commerce.
• For businesses NOT in interstate commerce, Idaho's § 44-1301 prohibits employment of under-14s in enumerated settings; an FMC performing office/administrative tasks is arguably not in the prohibited categories, and a child over 12 may work during school vacations.
• Maintain documentation: age-verification, tasks performed, hours worked, wage records.
• For UI purposes: verify that the FMC entity is a sole proprietorship or SMLLC taxed as sole prop before relying on the § 72-1316A(2) exclusion.
• For workers' comp: if child lives in parent's household, the household-dwelling family member exemption applies for a SMLLC sole prop FMC. If child does NOT live in parent's household, the IC Form 53 election-for-exemption process applies (requires filing with Idaho Industrial Commission).

5. Relevant Case Law / Administrative Guidance

No directly on-point Idaho state case law or AG opinion located as of June 29, 2026, specifically addressing family management company employment of minor children for income-shifting purposes.

Idaho DOL FAQ resource: https://www.labor.idaho.gov/businesses/labor-laws/labor-laws-faq/ Idaho Industrial Commission (workers' comp): https://iic.idaho.gov/employer-compliance-division/employer-information/

Federal authority (FLSA parental exemption, 29 U.S.C. § 203(l); 29 C.F.R. § 570.126) controls the federal layer.

6. FMC / Income-Shifting Interaction (state-specific notes)

State income tax: Idaho has a state income tax. Idaho conforms to the federal Internal Revenue Code (rolling conformity). For 2026, Idaho uses the federal standard deduction ($16,100 single, $32,200 MFJ). Idaho's flat income tax rate for 2026 is 5.3% (reduced from 5.695% by House Bill 40, effective retroactive to January 1, 2025), applied on income above the exemption threshold. A child's wages earned through an FMC are offset by the federal/Idaho standard deduction, meaning a child earning up to the standard deduction threshold will owe no Idaho income tax.

VERIFY: https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_10-23-2024.pdf

Unemployment insurance (SUTA): Idaho Code § 72-1316A(2) excludes from "exempt employment" service by a child under 21 employed by a father or mother as an individual proprietor (sole proprietorship). Idaho DOL guidance confirms this exclusion applies to SMLLCs taxed as sole proprietorships but not to corporations, professional associations, or LLCs with corporate tax treatment.

VERIFY: https://law.justia.com/codes/idaho/title-72/chapter-13/section-72-1316a/ and https://www.labor.idaho.gov/wp-content/uploads/2025/11/Handbook_Tax-information_Nov.-2025-1.pdf

Workers' compensation: Two pathways for family exemption:

1. Household-dwelling family member (SMLLC sole prop only): Family members dwelling in the employer's household are exempt from mandatory workers' comp. No filing required if child lives in same household.
2. Non-household family member (first-degree consanguinity, sole prop): Must file IC Form 53 with the Idaho Industrial Commission. Effective on receipt and approval.

For an FMC operating as a SMLLC taxed as sole prop, with child living at home, workers' comp is not mandatory but may be prudent to carry voluntarily.

VERIFY: https://iic.idaho.gov/wp-content/uploads/2021/09/Facts-for-Employers.pdf

7. State Implementation Playbook

1. Entity and ownership setup: A SMLLC taxed as a disregarded entity (sole proprietorship for federal and Idaho purposes), owned solely by one parent. This maximizes available exemptions: FICA/FUTA (federal), UI SUTA (Idaho § 72-1316A(2)), and workers' comp household exemption.

1. Age-appropriate role mapping:
2. Under 14: FLSA parental exemption allows work in non-mining, non-manufacturing, non-hazardous occupations. Idaho's § 44-1301 prohibitions are for enumerated workplace types; an FMC's home-office environment likely falls outside those prohibited categories. Light tasks: filing, organizing, simple data entry with close supervision.
3. Age 12–13: During school vacations (2+ weeks), § 44-1301 permits work at occupations in Chapter 13. Non-school hours: FLSA parental exemption applies.
4. Age 14–15: Office/clerical, social media, bookkeeping, marketing. Hour limits: FLSA controls (3/school day, 18/school week); Idaho's § 44-1304 hours (54/week, 9/day) are less restrictive but FLSA governs for interstate businesses.
5. Age 16–17: Broad range of non-hazardous business tasks.

1. Permit/certificate actions: No permit required. Maintain age documentation. If child does not live in parent's household and parent wants to confirm workers' comp exempt status, file IC Form 53.

1. Payroll and documentation actions:
2. Run W-2 payroll. For SMLLC FMC: no FICA/FUTA for child under 18.
3. No SUTA for child under 21 employed by parent (§ 72-1316A(2)).
4. Idaho income tax withholding: wages above the standard deduction threshold require withholding.
5. Document tasks, hours, rate contemporaneously.

1. State-specific filings / insurance:
2. Idaho income tax: child files Form 40 if Idaho taxable income exceeds threshold.
3. Workers' comp: household-dwelling family member in SMLLC = exempt, no filing. Non-household = IC Form 53 election.
4. No Idaho paid leave or state disability insurance for private employers.

1. Red flags and "do not do this" list:
2. Do not use a corporate or S-corp FMC ... FICA, SUTA, and workers' comp family exemptions are lost.
3. Do not employ a child in an LLC with a non-parent member and expect the § 72-1316A UI exemption to apply.
4. Do not assign hazardous work to minors.
5. Do not rely solely on Idaho's 1907-era child labor statute (§ 44-1304's 54 hours/week limit) if the business has interstate commerce; FLSA's stricter limits control.
6. Do not omit a written job description documenting actual tasks.

8. Sources

• [STATUTE] Idaho Code § 44-1301 (minimum age restrictions): https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/SECT44-1301/
• [STATUTE] Idaho Code § 44-1304 (hours of labor): https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/SECT44-1304/
• [STATUTE] Idaho Code § 72-1316A (exempt employment, family): https://law.justia.com/codes/idaho/title-72/chapter-13/section-72-1316a/
• [STATUTE] Idaho Code Chapter 13 index: https://legislature.idaho.gov/statutesrules/idstat/Title44/T44CH13/
• [AGENCY GUIDANCE] Idaho DOL ... UI Tax Information Handbook: https://www.labor.idaho.gov/wp-content/uploads/2025/11/Handbook_Tax-information_Nov.-2025-1.pdf
• [AGENCY GUIDANCE] Idaho Industrial Commission ... Facts for Employers: https://iic.idaho.gov/wp-content/uploads/2021/09/Facts-for-Employers.pdf
• [AGENCY GUIDANCE] Idaho Industrial Commission ... IC53 Election for Exemption Instructions: https://iic.idaho.gov/wp-content/uploads/2018/01/ic_53_declaration_instructions.pdf
• [AGENCY GUIDANCE] Idaho State Tax Commission ... IRC Conformity: https://tax.idaho.gov/governance/statutes/irc/
• [AGENCY GUIDANCE] Idaho Tax Instructions 2024 (Form EIN00046): https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_10-23-2024.pdf
• [SECONDARY] Justia ... Idaho Code § 72-1316A full text: https://law.justia.com/codes/idaho/title-72/chapter-13/section-72-1316a/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Illinois Child Labor Law of 2024 (820 ILCS 206) Effective: January 1, 2025 (P.A. 103-721) Official URL: https://ilga.gov/Legislation/ILCS/Articles?ActID=4524&ChapterID=68

820 ILCS 206/10 ... Definitions (relevant excerpts)

Citation: 820 ILCS 206/10

VERIFY: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K10.htm

820 ILCS 206/15 ... Employment of Minors

Citation: 820 ILCS 206/15

VERIFY: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K15.htm

820 ILCS 206/20 ... Exemptions

Citation: 820 ILCS 206/20

VERIFY: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K20.htm

Key takeaway: The §20(c) household-chores/babysitting exemption is limited to work in a private residence and "not in connection with an established business, trade, or profession." Employment of a minor child in a parent-owned FMC does not fall within this exemption. There is no general parent-employer exemption under the 2024 law for business contexts.

820 ILCS 206/25 ... Allowable Work Hours

Citation: 820 ILCS 206/25

VERIFY: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K25.htm

820 ILCS 206/55(a)–(c) ... Employment Certificates

Citation: 820 ILCS 206/55

VERIFY: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K55.htm

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (age 13 and younger): 820 ILCS 206/15(c): may not work in any occupation not explicitly authorized or exempted. Authorized/exempted occupations include: agricultural work (§20(a)), newspapers (§20(b)), household chores/babysitting in a private residence (§20(c)), golf caddying at 13 (§20(d)), and work-based learning programs (§20(e)). An FMC business context (marketing, admin, social media) is NOT within these exemptions. No employment of a 13-and-under in a business context is authorized under the 2024 law without specific authorization ... and the law has no parent-employer exemption for business work.

Ages 14–15:

• Must be outside school hours
• Requires employment certificate
• Max 18 hrs/school week; max 40 hrs/non-school week; max 8 hrs/day
• No work 7 p.m.–7 a.m. from Labor Day to June 1
• Max 3 hrs on a day preceding a school day
• An FMC employing a 14–15 year old must obtain an employment certificate from the school issuing officer

Ages 16 and older: The 2024 law defines "minor" as under 16 only (820 ILCS 206/10). Persons 16 and older are outside the 2024 Child Labor Law's scope. The prior 820 ILCS 205 had provisions for 16–17; the 2024 law replaced that framework. Workers 16+ in Illinois are governed by general labor law and FLSA.

NOTE: Confirm whether any residual 16–17 Illinois restrictions persist under other Illinois statutes. The 2024 law (820 ILCS 206) explicitly defines minor as under 16, which represents a narrowing from the prior law's under-16 work certificate scope.

Hazardous occupations: Illinois adopts FLSA hazardous occupation standards by reference. The Department of Labor enforces prohibitions under the 2024 law.

4. Work Permit Step-by-Step (logistics)

Illinois Employment Certificate ... Standard Process:

1. Minor and parent/legal guardian submit an application to the school issuing officer (regional or district superintendent of schools, or their duly authorized agent).
2. Application must include:
3. A statement of intention to employ signed by the employer
4. Evidence of age (birth certificate, or if unavailable, other acceptable documentation)
5. A statement of physical fitness signed by a physician or authorized official
6. Signed consent from parent or legal guardian
7. The school issuing officer reviews and determines the employment "shall not be detrimental to the minor's health, welfare, and education."
8. Officer issues the certificate, notifies the school principal, and provides copies to: the Department of Labor, the employer, and the parent/legal guardian.
9. Certificate is valid for one year unless suspended or revoked.
10. If refused, the officer sends notice to the school principal with reasons.

Parent-owned-business scenario: No exemption from the employment certificate requirement exists in 820 ILCS 206 for a parent who employs a minor in a business context. Even if the employer is the minor's parent, the §55(a) requirement that "any employer who employs, allows, or permits a minor to work shall ensure that the minor holds a valid employment certificate" applies. The §20(c) household-chores/babysitting exemption does not save business employment.

Practical implication for FMC: If a parent operates an FMC in Illinois and employs a minor child in business activities, the parent-as-employer must obtain an employment certificate from the minor's school. This involves the school's assessment of whether the employment is detrimental to the child's education ... which introduces school-district discretion into the arrangement.

VERIFY: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K55.htm

5. Relevant Case Law / Administrative Guidance

No directly on-point Illinois case law or AG opinion on the FMC income-shifting structure with minor child employment was located as of June 2026. The Illinois Department of Labor administers 820 ILCS 206.

The 2024 law (P.A. 103-721) took effect January 1, 2025, and is new enough that significant case law interpreting it does not yet exist.

Prior case law under the 820 ILCS 205 framework may offer interpretive guidance on employment certificate requirements and hazardous occupation prohibitions.

6. FMC / Income-Shifting Interaction (state-specific notes)

Key structural concern for Illinois: Unlike Ohio, Michigan, Indiana, Wisconsin, and Minnesota, Illinois's 2024 child labor law does NOT contain a parent-employer exemption for business employment. This means an employment certificate through the school is required. This is a meaningful operational difference. The school issuing officer has discretion to deny a certificate if the employment is "detrimental to the minor's health, welfare, and education." Practitioners and clients should factor this additional procedural hurdle into Illinois FMC planning.

State Income Tax: Illinois imposes a flat 4.95% income tax on adjusted gross income (IL Constitution Art. IX, §3). Illinois does NOT have a standard deduction. Instead, Illinois offers an exemption allowance: $2,925 per exemption in 2026 (adjusted annually). A working child who is a dependent of another taxpayer and whose Illinois base income exceeds their exemption allowance owes Illinois income tax. The effective result: the child's Illinois taxable income = wages − $2,925 (one exemption allowance), taxed at 4.95%.

VERIFY (Illinois exemption allowance): https://tax.illinois.gov/questionsandanswers/answer.851.html VERIFY (Illinois income tax rates): https://tax.illinois.gov/research/taxrates/income.html

Child's Illinois income tax result: With only a $2,925 exemption allowance (2026), a child earning $10,000 owes approximately $350 in Illinois income tax [(10,000 − 2,925) × 4.95%]. This is a meaningful erosion of the income-shifting benefit and should be included in client financial modeling.

Workers' Compensation: Illinois Workers' Compensation Act (820 ILCS 305) covers employees, including minors. No broad family member exemption exists. An FMC employer in Illinois must maintain workers' comp coverage for a minor child employee.

Unemployment Insurance (SUTA): Illinois Unemployment Insurance Act (820 ILCS 405) excludes from "employment" services performed by a child under 18 in the employ of their parent (sole proprietorship). An S-corp, partnership with non-parent members, or other entity structure does not qualify for the exclusion.

Citation: 820 ILCS 405/218 (Source: P.A. 79-817) ... NOTE: age threshold is 18, not 21

Official URL: https://ilga.gov/Legislation/ILCS/Articles?ActID=2403&ChapterID=68

VERIFY: https://ilga.gov/Legislation/ILCS/Articles?ActID=2403&ChapterID=68

7. State Implementation Playbook

1. Entity & ownership setup: Parent-owned SMLLC (disregarded entity) or sole proprietorship. An S-corp or corporate structure loses the federal FICA exemption and does not benefit from the UI family exclusion.

1. Age-appropriate role mapping:
2. Under 14: Illinois has no parent-employer exemption for business work ... do not employ a minor under 14 in FMC business activities without explicit Illinois DOL guidance or an authorized exemption. Household chores and babysitting in a private residence are exempt, but business marketing/admin is not.
3. 14–15: May work in FMC business context outside school hours with a valid employment certificate. Roles: social media, content creation, photography, data entry, research.
4. 16 and older: Outside the 2024 law's definition of "minor"; general labor law applies; no employment certificate required under 820 ILCS 206.

1. Permit/certificate actions: Obtain an employment certificate from the school district issuing officer before the 14–15 year old begins any work for the FMC. Renew annually.

1. Payroll & documentation: Issue W-2. Withhold federal income tax. No FICA if sole prop or parental partnership. Withhold Illinois income tax at 4.95% on earnings above $2,925 exemption allowance.

1. State-specific filings / insurance: Illinois workers' comp required. Illinois SUTA: child under 18 employed by parent in sole prop/disregarded LLC is excluded per 820 ILCS 405/218; does not apply to corporations. Illinois Department of Labor employment certificate process creates ongoing administrative obligation.

1. Red flags / do not do this:
2. Do not employ a minor under 14 in FMC business activities ... there is no parent-employer exemption under the 2024 law for business contexts
3. Do not skip the employment certificate process for a 14–15 year old employed in the FMC ... it is legally required
4. Do not rely on the §20(c) household-chores/babysitting exemption to justify business employment ... the statute expressly limits it to work "not in connection with an established business, trade, or profession"
5. Do not ignore the school issuing officer's discretionary role; a certificate may be denied

8. Sources

• [STATUTE] 820 ILCS 206 ... Illinois Child Labor Law of 2024 (table of articles): https://ilga.gov/Legislation/ILCS/Articles?ActID=4524&ChapterID=68
• [STATUTE] 820 ILCS 206/10 ... Definitions: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K10.htm
• [STATUTE] 820 ILCS 206/15 ... Employment of minors: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K15.htm
• [STATUTE] 820 ILCS 206/20 ... Exemptions (household chores/babysitting; agriculture): https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K20.htm
• [STATUTE] 820 ILCS 206/25 ... Allowable work hours: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K25.htm
• [STATUTE] 820 ILCS 206/55 ... Employment certificates: https://www.ilga.gov/documents/legislation/ilcs/documents/082002060K55.htm
• [AGENCY GUIDANCE] Illinois personal exemption allowance: https://tax.illinois.gov/questionsandanswers/answer.851.html
• [AGENCY GUIDANCE] Illinois income tax rates: https://tax.illinois.gov/research/taxrates/income.html
• [SECONDARY] Illinois income tax flat rate (4.95%) and no standard deduction: https://blog.turbotax.intuit.com/income-tax-by-state/illinois-106844/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Indiana Code, Title 22, Article 2, Chapter 18.1 ... Employment of Minors Primary source: https://www.in.gov/dol/youth-employment/youth-employment-home/

IC 22-2-18.1-2(a) ... Family/Parent-Employer Exemption

As amended by HEA 1093 (effective January 1, 2025):

Citation: IC 22-2-18.1-2(a), as amended by P.L. (HEA 1093, 2024)

VERIFY: https://legiscan.com/IN/text/HB1093/id/2952309/Indiana-2024-HB1093-Enrolled.pdf (enrolled act; official codified text at iga.in.gov)

IC 22-2-18.1-12(a) ... Minimum Age

Citation: IC 22-2-18.1-12(a), as amended

VERIFY: https://legiscan.com/IN/text/HB1093/id/2952309/Indiana-2024-HB1093-Enrolled.pdf

IC 22-2-18.1-23 ... Hazardous Occupations

Citation: IC 22-2-18.1-23

VERIFY: https://law.justia.com/codes/indiana/title-22/article-2/chapter-18-1/section-22-2-18-1-23-b/

Indiana UI ... 646 IAC 5-5-4 ... Minor Child in Family Business

Citation: 646 IAC 5-5-4 (Authority: IC 22-4-18-1; IC 22-4.1-3-3)

VERIFY: https://www.law.cornell.edu/regulations/indiana/646-IAC-5-5-4

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14: IC 22-2-18.1-2(a) exempts a parent-employed child from the chapter, except for:

• The underage employment restriction of §12(a): under-14 may only work as farm laborer, domestic service, caddy, or newspaper carrier (even for a parent)
• School-hours prohibition: minor under 16 may not work during school hours (§12(b))
• FLSA hazardous occupation bans

For an FMC context (marketing, social media, administrative tasks): these activities are not listed under §12(a)'s permitted occupations for under-14. Even with the parental exemption, a child under 14 cannot work in "gainful occupations" beyond those listed in §12(a). The parental exemption under §2(a)(1)(A) carves out most of the chapter but explicitly preserves the underage employment restriction.

NOTE: There is a tension between the broad "does not apply" language of §2(a)(1)(A) and the §12(a) underage restriction. Practitioners should review the enrolled HEA 1093 text carefully at the VERIFY URL and obtain Indiana DOL guidance or counsel before employing a child under 14 in non-listed occupations.

Ages 14–15:

• May not work before 7 a.m. or after 7 p.m. (outside June 1–Labor Day)
• June 1–Labor Day: may work until 9 p.m. (except nights before school days = 7 p.m.)
• School days: max 3 hrs/day, 18 hrs/school week
• Non-school: max 8 hrs/day, 40 hrs/week
• Parent-employed children at this age: §2(a) exempts from hours restrictions EXCEPT the school-hours prohibition and underage employment rules remain

Ages 16–17 (effective January 1, 2025):

• All previous Indiana hour and time restrictions have been repealed (HEA 1093)
• May work same hours and days as adults ... no restriction
• Federal FLSA hazardous occupation bans remain for non-agricultural employment
• Agricultural hazardous occupation restrictions for 16–17 were also repealed under HEA 1093

VERIFY (2025 amendments): https://www.kriegdevault.com/insights/what-to-expect-in-2025-updates-to-indiana-child-labor-laws

4. Work Permit Step-by-Step (logistics)

As of July 1, 2021, Indiana eliminated work permits entirely (IC 22-2-18.1).

The prior system (IC 20-33-3, employment certificates issued by schools) was replaced by:

Youth Employment System (YES):

• Employers with 5 or more minor employees (ages 14–17) must register in the Indiana Department of Labor's online YES database
• Registration requires: corporate and individual location information, minor employee names and details
• When a minor's employment ends, employer updates YES to remove the minor
• Penalty for non-compliance: $100–$400 per infraction per minor employee

Family-employer exemption from YES: Under IC 22-2-18.1-2(a), the chapter does not apply to a parent employing their own child or to a legal entity owned solely by parents. Thus, such employers are not "required employers" under the YES system (confirmed in Indiana DOL's proposed rule for 610 IAC 10-5, defining "required employer" as one "not subject to the exemptions described in IC 22-2-18.1-2").

VERIFY: https://www.in.gov/dol/youth-employment/youth-employment-home/

VERIFY (DOL proposed rule citing exemption): https://www.in.gov/dol/files/Notice-of-Public-Comment-25-625.pdf

5. Relevant Case Law / Administrative Guidance

646 IAC 5-5-4 (Indiana Department of Workforce Development administrative rule): directly addresses minor child employment in a family business for unemployment insurance purposes ... quoted in Section 2.

Indiana DOL proposed rule (2025 Notice of Public Comment, 610 IAC 10-5): defines "required employer" as one not subject to the §2 family exemptions, confirming family-employer exemption from YES registration.

No directly on-point Indiana court case or formal AG opinion on the FMC income-shifting structure for minors was located as of June 2026. Federal authority (FLSA §3(l)) and IRC §3121(b)(3)(A) control the federal layer.

6. FMC / Income-Shifting Interaction (state-specific notes)

Entity structure: IC 22-2-18.1-2(a)(1)(C) specifically extends the exemption to "a legal entity whose ownership is limited to the parents in which a parent of the employed child ... has an ownership interest." This language is broader than Ohio's and expressly contemplates a parent-owned legal entity (including an SMLLC). The employment through a parent-owned SMLLC falls within the exemption.

If the entity is an S-corp or has non-parent owners, the exemption language ("ownership is limited to the parents") is not satisfied; additionally, the federal FICA exemption is lost.

State Income Tax: Indiana imposes a flat 2.95% income tax (2026 rate) on adjusted gross income (IC 6-3-1 et seq.). Indiana does NOT have a standard deduction. Indiana offers personal exemptions: $1,000 per exemption claimed on the federal return; $1,500 for certain dependent children; $2,500 per dependent child in some circumstances. Indiana taxable income starts from federal AGI with Indiana-specific adjustments. A working child's Indiana tax = (wages − Indiana personal exemptions) × 3.05%. Additional county income taxes apply (rates vary by county of residence, typically 0.5%–3.0%).

Child's Indiana income tax result: The child shelters only the Indiana personal exemption (~$1,000–$2,500) from Indiana income tax, versus the federal $16,100 standard deduction. Indiana income tax is owed on essentially all earned wages above a modest exemption. This significantly reduces (but does not eliminate) the net income-shifting benefit.

VERIFY (Indiana income tax): https://www.in.gov/dor/i-am-a/individual/deductions/

Workers' Compensation: Indiana workers' comp (IC 22-3-2 through IC 22-3-6) covers employees including minors. IC 22-3-6-1(c) defines "minor" as under 17 for workers' comp purposes. Family farm exemptions apply in agriculture. For a non-agricultural FMC, the child employee would generally be covered; the employer must maintain coverage.

Unemployment Insurance (SUTA): 646 IAC 5-5-4 (quoted in Section 2) directly addresses this: services by a minor child for a sole proprietorship of the parent do not constitute "employment" for Indiana UI purposes. A parent-owned partnership where parents are sole members is also excluded. An entity with non-parent owners does not qualify for exclusion.

VERIFY: https://www.law.cornell.edu/regulations/indiana/646-IAC-5-5-4

7. State Implementation Playbook

1. Entity & ownership setup: Parent-owned SMLLC (disregarded entity) or sole proprietorship. The IC 22-2-18.1-2(a)(1)(C) "ownership limited to parents" language expressly covers the FMC structure. Avoid S-corp or any non-parent ownership interest.

1. Age-appropriate role mapping:
2. Under 14: caution ... even for parents, §12(a) restricts gainful occupation to farm labor, domestic service, caddying, newspaper delivery; marketing/admin tasks for an FMC are not expressly listed; obtain Indiana DOL guidance before proceeding with under-14 office/admin work
3. 14–15: social media, content creation, photography, research, data entry (during non-school hours only; school-hours prohibition preserved under §2(a))
4. 16–17: full adult schedule now permitted; bookkeeping, marketing, client coordination, video production

1. Permit/certificate actions: No work permit required (eliminated July 1, 2021). Family-employer exemption removes the entity from YES registration requirements. Maintain internal employment documentation: written agreement, job description, time records.

1. Payroll & documentation: Issue W-2. Withhold federal income tax. No FICA/FUTA if sole prop or parental-only partnership. Withhold Indiana state income tax (2.95% flat) plus applicable county income tax. File Indiana WH-1 withholding returns.

1. State-specific filings / insurance: Indiana workers' comp likely required for non-agricultural FMC employee (verify with insurer); Indiana SUTA excluded for parent sole prop or parental partnership.

1. Red flags / do not do this:
2. Do not employ a child under 14 in office or marketing roles without confirming Indiana DOL's interpretation of the interplay between §2(a)(1)(A) and §12(a)
3. Do not treat the family exemption as eliminating hazardous occupation bans ... IC 22-2-18.1-23 and FLSA hazardous orders still apply
4. Do not add non-parent owners to the entity without reconsidering the "ownership limited to parents" statutory language
5. Do not fail to account for Indiana county income taxes when modeling child's tax liability

8. Sources

• [STATUTE] IC 22-2-18.1 ... Employment of Minors (chapter overview): https://law.justia.com/codes/indiana/title-22/article-2/chapter-18-1/
• [STATUTE] IC 22-2-18.1-2 ... Family exemption (HEA 1093 enrolled text): https://legiscan.com/IN/text/HB1093/id/2952309/Indiana-2024-HB1093-Enrolled.pdf
• [STATUTE] IC 22-2-18.1-12 ... Minimum age: https://legiscan.com/IN/text/HB1093/id/2952309/Indiana-2024-HB1093-Enrolled.pdf
• [STATUTE] IC 22-2-18.1-23 ... Hazardous occupations: https://law.justia.com/codes/indiana/title-22/article-2/chapter-18-1/section-22-2-18-1-23-b/
• [STATUTE] 646 IAC 5-5-4 ... Minor child in family business (UI): https://www.law.cornell.edu/regulations/indiana/646-IAC-5-5-4
• [AGENCY GUIDANCE] Indiana DOL Youth Employment Home: https://www.in.gov/dol/youth-employment/youth-employment-home/
• [AGENCY GUIDANCE] Indiana DOL proposed rule (family exemption from YES): https://www.in.gov/dol/files/Notice-of-Public-Comment-25-625.pdf
• [SECONDARY] Indiana 2025 child labor law changes summary: https://www.kriegdevault.com/insights/what-to-expect-in-2025-updates-to-indiana-child-labor-laws
• [SECONDARY] Indiana income tax deductions: https://www.in.gov/dor/i-am-a/individual/deductions/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Iowa Code § 92.3 ... Under fourteen ... work activities not permitted

Citation: Iowa Code § 92.3 (2026)

Official URL: https://www.legis.iowa.gov/docs/code/92.3.pdf

VERIFY: https://www.legis.iowa.gov/docs/code/92.3.pdf

Iowa Code § 92.17 ... Exceptions (the family-business exemption)

Citation: Iowa Code § 92.17 (2023 Acts, ch 92, §§ 10–13; 2019 Acts, ch 108, § 1)

Official URL: https://www.legis.iowa.gov/docs/code/92.17.pdf

VERIFY: https://www.legis.iowa.gov/docs/code/92.17.pdf

Iowa Code § 92.10 and § 92.11 ... Work Permits REPEALED

Iowa no longer requires employment certificates for minors. Official URL: https://www.legis.iowa.gov/docs/code/92.10.pdf and https://www.legis.iowa.gov/docs/code/92.11.pdf VERIFY: https://www.legis.iowa.gov/docs/code/92.11.pdf

Iowa Code § 92.4 ... Under sixteen ... permitted work activities during school hours

Citation: Iowa Code § 92.4 (2026)

Official URL: https://www.legis.iowa.gov/docs/code/92.4.pdf

VERIFY: https://www.legis.iowa.gov/docs/code/92.4.pdf

Iowa Code § 92.7 ... Under sixteen ... hours permitted

Citation: Iowa Code § 92.7

Official URL: https://www.legis.iowa.gov/docs/code/92.7.pdf

VERIFY: https://www.legis.iowa.gov/docs/code/92.7.pdf

Iowa Code § 92.7A ... Sixteen and seventeen ... hours permitted

Citation: Iowa Code § 92.7A (2023 Acts, ch 92, § 7)

Official URL: https://www.legis.iowa.gov/docs/code/92.7A.pdf

VERIFY: https://www.legis.iowa.gov/docs/code/92.7A.pdf

Iowa Code § 92.8 ... Under eighteen ... prohibited work activities (hazardous occupations)

Citation: Iowa Code § 92.8

Official URL: https://www.legis.iowa.gov/docs/code/92.8.pdf

VERIFY: https://www.legis.iowa.gov/docs/code/92.8.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• No employment permitted in any work activity (§ 92.3), with the potential exception of the § 92.17(2) family-business exemption (see Section 2 above). Even under the family exemption, hazardous occupations under § 92.8 still apply per the plain text of § 92.17, which does not override § 92.8.

14–15 years:

• No work during regular school hours (§ 92.4), except legally out-of-school minors or school-work programs
• Hours: not before 7:00 a.m. / not after 9:00 p.m. (extended to 11:00 p.m. June 1 through Labor Day)
• Max 8 hours/day, 40 hours/week (nonschool)
• Max 6 hours/day, 28 hours/week while school is in session (§ 92.7)
• 30-minute break required for shifts of 5 hours or more
• All § 92.8 hazardous occupations prohibited

16–17 years:

• May work the same hours as an adult (§ 92.7A ... enacted 2023, no statutory hour limit)
• All § 92.8 hazardous occupations still prohibited
• Waivers available for certain approved career/technical education programs (§ 92.8A)

4. Work Permit Step-by-Step (logistics)

Iowa eliminated its employment certificate (work permit) requirement for minors. Iowa Code §§ 92.10 (Permit on file) and 92.11 (Issuance of work permits) were both repealed by 2023 Acts, ch 92, § 22, effective upon enactment.

As of 2023 and forward:

• No employment certificate or work permit is required for any minor in Iowa.
• No filing, no school signature, no employer form requirement.
• There is no permit exemption for parent-owned businesses because no permit is required at all.

Practical documentation recommendation: Although no permit is legally required, a parent-employer in an FMC context should maintain:

1. Written employment agreement specifying job duties, hours, and wage rate
2. Regular timesheets
3. Payroll records and W-2 issuance
4. Evidence that duties were actually performed (photos, project deliverables, communications)

This documentation is not legally mandated by Iowa child labor law but is essential to substantiate the IRS income-shifting arrangement.

VERIFY (repeal): https://www.legis.iowa.gov/docs/code/92.11.pdf

5. Relevant Case Law / Administrative Guidance

Iowa Department of Inspections, Appeals, and Licensing (DIAL) Child Labor Page: DIAL confirms: "A minor must be at least 14 years of age to be employed. Some exceptions are allowed." The agency website references Iowa Code Chapter 92 and acknowledges the § 92.17(2) family-business exception. Source: https://dial.iowa.gov/hearings/wage-and-child-labor/child-labor

Iowa Admin. Code rule 871-23.18(6) ... SUTA family employment exclusion:

Source: Iowa Admin. Code r. 871-23.18(6) (Iowa Workforce Development)

VERIFY: https://rules.iowa.gov/ (search 871-23.18)

Iowa Code § 96.19 ... UI excluded services: The enacted text of Iowa Code ch. 96 confirms: "Service performed by an individual in the employ of the individual's son, daughter, or spouse, and service performed by a child under the age of eighteen in the employ of the child's father or mother." Source: https://www.legis.iowa.gov/docs/ico/chapter/96.pdf VERIFY: https://www.legis.iowa.gov/docs/ico/chapter/96.pdf

No directly on-point state case law located as of June 29, 2026 specifically addressing the § 92.17(2) family-business exemption in an FMC income-shifting context. Federal authority (FLSA parental exemption) controls for child labor floor purposes.

6. FMC / Income-Shifting Interaction (state-specific notes)

Iowa income tax: Iowa has a flat income tax rate of 3.8% (effective 2025). Starting with tax year 2023, Iowa's starting point for taxation is federal taxable income, and Iowa incorporates the federal standard deduction or itemized deduction. Iowa no longer maintains a separate state standard deduction or itemized deduction system.

Key consequence for income-shifting: A child employed by a parent's Iowa FMC who earns wages will report those wages on an Iowa return using the same standard deduction as for federal purposes. For tax year 2026, a single dependent filer's standard deduction is $16,100 (mirrors federal). Iowa taxable income = federal taxable income (with limited Iowa-specific adjustments). Iowa rate: 3.8% flat.

Source (Iowa 2024 conformity): "For tax years beginning on or after January 1, 2023, the starting point for taxation is federal taxable income. Iowa has also adopted rolling conformity." ... Iowa IA 1040 2024 Instructions VERIFY: https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/1040-expanded-instructions/iowa-taxable-income

Workers' compensation (Iowa Code § 85.1): Iowa workers' comp exempts from mandatory coverage: "The spouse of the employer, parents, brothers, sisters, children, and stepchildren of either the employer or the spouse of the employer." This exemption applies to employees of a sole proprietor employer. The exemption does NOT extend to LLCs, corporations, or S-corps.

Iowa Code § 85.1(3)(b)(1) ... verbatim:

VERIFY: https://www.legis.iowa.gov/docs/code/2009/85.pdf (see § 85.1(3)(b)(1))

FMC entity type matters critically: An Iowa SMLLC taxed as a disregarded entity is treated for Iowa income tax purposes as a sole proprietorship, but the Iowa workers' comp statute and SUTA exclusion turn on the legal form (sole prop vs. LLC). Iowa administrative code r. 871-23.18(6) states the SUTA family exclusion is "not applicable to corporations or to limited liability companies." This creates a gap: the SMLLC FMC structure loses Iowa SUTA and Iowa workers' comp family exemptions even if the IRS treats it as a disregarded entity.

Implication: A parent using an Iowa FMC structured as an LLC must either (a) elect workers' comp coverage for the child, or (b) accept that the child is covered but premiums must be paid. The SUTA tax is due. Structuring as a sole proprietorship or general partnership of two parents preserves both exemptions but eliminates liability protection.

Nebraska-Iowa border note: No Iowa-specific FMC case law located. Federal precedents (e.g., IRS guidance on family FMCs) control.

7. State Implementation Playbook

1. Entity and ownership setup: If FICA/FUTA and Iowa SUTA exemptions are desired, the employing entity must be a sole proprietorship or a partnership whose only partners are the two parents. An Iowa SMLLC taxed as a disregarded entity preserves federal FICA/FUTA exemptions but loses Iowa SUTA and Iowa workers' comp family exemptions per Iowa Admin. Code r. 871-23.18(6). Weigh the liability protection of the LLC against these costs.

1. Age-appropriate role mapping:
2. Under 14: Iowa Code § 92.3 bars employment in "any work activity." The § 92.17(2) family exception may cover this, but the exclusion from § 92.8 hazardous occupations still applies. Stick to light, clearly documented tasks (filing, simple data entry, holding items for photos) and consult Iowa DIAL for guidance before employing a child under 14.
3. 14–15: Social media content, photography assistance, light office filing, data entry, bookkeeping support. Limit to 6 hours/day and 28 hours/week during school sessions.
4. 16–17: Broader office and administrative roles. No statutory hour limit under § 92.7A (2023). Avoid § 92.8 hazardous occupations.

1. Permit and certificate actions: None required. Iowa repealed its work permit requirement in 2023. Document employment internally: written job description, signed acknowledgment of duties, timesheets.

1. Payroll and documentation:
2. Pay at or above market rate for the work performed
3. Issue W-2 annually
4. Maintain timesheets and written employment agreements
5. Iowa income tax withholding is required for employees earning above withholding thresholds
6. Iowa does not require separate state child labor certificates

1. State-specific filings/insurance:
2. Iowa SUTA: If entity is an LLC, SUTA applies to the child's wages. File quarterly with Iowa Workforce Development.
3. Iowa workers' comp: If entity is an LLC, obtain a workers' comp policy covering the child. If entity is a sole proprietorship, the § 85.1(3)(b)(1) exemption applies; consider voluntarily obtaining coverage anyway.

1. Red flags / do not do this:
2. Do not employ a child under 14 without specific legal counsel on whether § 92.17(2) overrides § 92.3 for a family business ... the statute is ambiguous and Iowa DIAL's guidance says minimum age is 14.
3. Do not pay wages for undocumented, unperformed work.
4. Do not structure an Iowa FMC as an LLC and then assume the Iowa SUTA and workers' comp family exemptions apply ... they do not.
5. Do not omit Iowa income tax withholding if the child's Iowa wages exceed withholding thresholds.
6. Do not assume § 92.7A's removal of hour limits for 16–17 year-olds overrides § 92.8 hazardous occupation bans ... it does not.

8. Sources

• [STATUTE] Iowa Code § 92.3 ... https://www.legis.iowa.gov/docs/code/92.3.pdf
• [STATUTE] Iowa Code § 92.4 ... https://www.legis.iowa.gov/docs/code/92.4.pdf
• [STATUTE] Iowa Code § 92.7 ... https://www.legis.iowa.gov/docs/code/92.7.pdf
• [STATUTE] Iowa Code § 92.7A ... https://www.legis.iowa.gov/docs/code/92.7A.pdf
• [STATUTE] Iowa Code § 92.8 ... https://www.legis.iowa.gov/docs/code/92.8.pdf
• [STATUTE] Iowa Code § 92.10 (repealed) ... https://www.legis.iowa.gov/docs/code/92.10.pdf
• [STATUTE] Iowa Code § 92.11 (repealed) ... https://www.legis.iowa.gov/docs/code/92.11.pdf
• [STATUTE] Iowa Code § 92.17 ... https://www.legis.iowa.gov/docs/code/92.17.pdf
• [STATUTE] Iowa Code § 85.1 (workers' comp exemptions) ... https://www.legis.iowa.gov/docs/code/2009/85.pdf
• [STATUTE] Iowa Code ch. 96 (SUTA excluded services) ... https://www.legis.iowa.gov/docs/ico/chapter/96.pdf
• [AGENCY GUIDANCE] Iowa Admin. Code r. 871-23.18(6) ... https://rules.iowa.gov/Notice/Details/8408C
• [AGENCY GUIDANCE] Iowa DIAL Child Labor page ... https://dial.iowa.gov/hearings/wage-and-child-labor/child-labor
• [AGENCY GUIDANCE] Iowa IA 1040 2024 Instructions (conformity) ... https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/1040-expanded-instructions/iowa-taxable-income
• [AGENCY GUIDANCE] Iowa Workforce Development ... UI exclusions ... https://workforce.iowa.gov/employers/unemployment-insurance/unemployment-insurance-employer-handbook/employers-covered-under-law
• [SECONDARY] Iowa Center for Agricultural Law and Taxation ... Rolling Conformity ... https://www.calt.iastate.edu/post/look-iowas-rolling-conformity-federal-tax-law

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

KSA 38-601 ... Minimum age

Citation: KSA 38-601 (L. 1917, ch. 227, § 1)

Official URL: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0001.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0001.html

KSA 38-602 ... Hazardous occupations under 18

Citation: KSA 38-602 (L. 1917, ch. 227, § 2; L. 1943, ch. 178, § 1; L. 1973, ch. 183, § 2)

Official URL: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0002.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0002.html

KSA 38-603 ... Hours restrictions for children under 16

Citation: KSA 38-603 (L. 1917, ch. 227, § 3; L. 1973, ch. 183, § 3)

Official URL: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0003.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0003.html

KSA 38-604 ... Work permit requirement / school enrollment exception

Citation: KSA 38-604 (L. 1917, ch. 227, § 4; L. 1972, ch. 163, § 1)

Official URL: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0004.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0004.html

KSA 38-605 ... Posted notice requirement

Citation: KSA 38-605 (L. 1917, ch. 227, § 5)

Official URL: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0005.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0005.html

KSA 38-606 ... Work permit issuance process

Citation: KSA 38-606 (L. 1917, ch. 227, § 6)

Official URL: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0006.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0006.html

KSA 38-614 ... Family exemption from "employment" definition (THE KEY PROVISION)

Citation: KSA 38-614 (L. 1917, ch. 227; as codified and amended)

Official URL: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0014.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0014.html

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• KSA 38-601 bars employment of any child under 14 at any time, "except as provided by K.S.A. 38-614."
• KSA 38-614(1) exempts "children employed by their parents in nonhazardous occupations" from the definition of employment.
• Result: For a child under 14, the parent-employment exemption in KSA 38-614(1) removes the child from Chapter 38 Article 6 coverage entirely, but FLSA minimum age of 14 still applies for FLSA-covered employers.
• Even under the Kansas family exemption: no work during school session hours (§ 38-614 last clause).

Under 16:

• KSA 38-603: max 8 hours/day, 40 hours/week; no earlier than 7:00 a.m. or later than 10:00 p.m. (except evenings not preceding a school day)
• These hours apply to "vocations mentioned in this act" ... if the child is exempt under § 38-614, these hours restrictions technically do not apply; however, FLSA hours rules govern for FLSA-covered employers.
• KSA 38-602: no hazardous occupations for under-18 (incorporates FLSA HO orders)

16–17:

• KSA 38-602's hazardous occupation ban applies through age 17 (applies to "child under eighteen")
• No Kansas-specific hour restrictions for 16–17 beyond KSA 38-602
• FLSA HO orders 1–17 apply for under-18 for FLSA-covered employers

4. Work Permit Step-by-Step (logistics)

Kansas's standard rule (KSA 38-604): A work permit is required for employers of children under 16 in covered vocations, unless the child is enrolled in or attending any secondary school in Kansas. Because most 14–15 year-olds attending school require no Kansas work permit, the effective permit requirement applies primarily to out-of-school minors.

For non-school-enrolled minors (if permit required):

1. The employer obtains a written permit from the superintendent of schools or district court judge (§ 38-606)
2. The employer provides a written statement of the occupation at which the child will work
3. The child's school record is submitted (showing completion of elementary course of study)
4. Evidence of age (showing the child is at least 14) is provided
5. The permit is kept on file and accessible to labor department inspectors (§ 38-604)
6. A posted notice of work hours is required in all establishments employing under-16 children (§ 38-605)

Parent-employer family exemption: Because KSA 38-614(1) provides that "children employed by their parents in nonhazardous occupations" shall not be considered "employment" for purposes of Article 6 of Chapter 38, the work permit requirement of § 38-604 does not apply. The child is not legally "employed" within the meaning of the Kansas child labor statute.

Note: Even if exempt from Kansas child labor law, the parent must still comply with:

• FLSA requirements (if the employer is engaged in interstate commerce)
• KSA 38-614's closing clause: no work during school session hours
• KSA 38-602's hazardous occupation ban (which applies to Chapter 38 Article 6 ... though the § 38-614 exemption may remove the child from Article 6's scope, the FLSA HO orders still apply for covered employers)

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0014.html

5. Relevant Case Law / Administrative Guidance

KSA 38-602 case annotations ... Casteel v. Brick Co., 83 Kan. 533 (1911): Right of action for damages when minor employed in dangerous occupation. Confirmed that Kansas prohibits employment in occupations dangerous to life or health.

Dressler v. Dressler, 167 Kan. 749, 208 P.2d 271 (1949): Trial court finding that section not violated was conclusive on appeal; KSA 38-603 hours requirement discussed. Minor's employment contract valid under workers' compensation act.

Neville, Administratrix v. Wichita Eagle, 179 Kan. 197, 294 P.2d 248 (1956): Minor's employment contract valid; within workmen's compensation act.

No directly on-point Kansas AG opinion or case located as of June 29, 2026 addressing the § 38-614 family employment exemption in an FMC income-shifting context.

6. FMC / Income-Shifting Interaction (state-specific notes)

Kansas income tax: Kansas has a graduated individual income tax. Kansas's standard deduction is NOT equal to the federal standard deduction ... it is set by Kansas statute (KSA 79-32,119) at significantly lower amounts.

Per KSA 79-32,119(c)(2) (for tax year 2024 and all years thereafter):

Additionally, the "additional standard deduction" for age/blindness is allowed per KSA 79-32,119(b): single/$850; married/$700.

Key consequence for income-shifting: The Kansas standard deduction for a single child filer is only $3,605 (2026), compared to $16,100 (federal, 2026). A child earning wages above $3,605 will have Kansas taxable income. Kansas income tax rates for 2026 (post-2024 reform): 5.2% on the first $23,000; 5.58% above $23,000 (single filer).

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch79/079_032_0119.html

VERIFY current Kansas tax rates: https://www.ksrevenue.gov/

Workers' comp (Kansas): Kansas workers' comp applies to employers with two or more employees or an annual payroll of $20,000 or more. Family employees are generally covered. No broad family exemption was found for non-agricultural Kansas businesses.

There is NO general family exclusion from Kansas workers' comp for non-agricultural businesses. Per K.S.A. § 44-505: wages paid to family members of sole proprietors or partners are excluded from the $20,000 annual payroll calculation used to determine whether the employer is required to carry workers' comp, but if the employer otherwise meets the threshold, family employees must be covered. For corporations, family wages count in full (K.A.R. § 51-11-6).

Citation: K.S.A. § 44-505(a)(2)–(a)(3); K.A.R. § 51-11-6

Official URL: https://www.ksrevisor.org/statutes/chapters/ch44/044_005_0005.html

VERIFY: https://www.ksrevisor.org/statutes/chapters/ch44/044_005_0005.html

Kansas SUTA: Kansas SUTA covers employees generally. Kansas likely excludes from covered employment children under 18 employed by a parent (sole prop or partnership of parents only), consistent with federal FUTA structure. An LLC employer does not benefit from this exclusion.

Citation: Kansas Employment Security Law (KSA § 44-703 and related exclusions); confirmed per Kansas Employment Security Handbook

Official URL: https://kgi.contentdm.oclc.org/digital/api/collection/p16884coll12/id/550/download

VERIFY: https://kgi.contentdm.oclc.org/digital/api/collection/p16884coll12/id/550/download

Note: Age threshold for child employed by parent is 21; does not apply to corporations; applies to sole proprietorships and qualifying partnerships.

7. State Implementation Playbook

1. Entity and ownership setup: The KSA 38-614(1) family exemption removes parent-employed children from Kansas child labor law entirely. This is a broad exemption ... broader than many states ... covering "children employed by their parents in nonhazardous occupations." Structure the employing entity as a sole proprietorship or partnership of parents to maximize SUTA and workers' comp family exclusions (if available).

1. Age-appropriate role mapping:
2. Under 14: KSA 38-601 bars "employment" for under-14, but KSA 38-614(1) exempts parent-employed children in nonhazardous occupations from the definition of "employment." FLSA minimum age of 14 still applies for FLSA-covered employers. Do not put children under 14 on formal payroll if the business is subject to FLSA.
3. 14–15: Social media content, photography, light administrative filing, bookkeeping support, data entry. Under KSA 38-614(1), not technically "employment" under Kansas law. Follow FLSA hours for FLSA-covered employers. Avoid KSA 38-602/FLSA hazardous occupations.
4. 16–17: Broader administrative, marketing, bookkeeping, research roles. KSA 38-602 hazardous occupation ban applies through age 17. FLSA HO orders apply.

1. Permit and certificate actions:
2. Under the KSA 38-614(1) family exemption: no work permit required (not "employment" under Kansas law).
3. For children enrolled in secondary school employed by non-family employers: no work permit required (§ 38-604 school enrollment exception).
4. If a non-family employer without school enrollment needs a permit: Superintendent of schools or district court judge issues it; employer provides occupation statement; school record and age evidence required.

1. Payroll and documentation:
2. Pay at market rate; document with written employment agreement
3. Issue W-2 annually; Kansas income tax withholding applies on wages above $3,605 (single, 2026 KS standard deduction)
4. Maintain timesheets and work product records

1. State-specific filings/insurance:
2. Kansas workers' comp: Verify with Kansas DOL whether the FMC LLC triggers mandatory coverage.
3. Kansas SUTA: Verify family exclusion for child under 18 employed by parent. If sole prop or partnership of parents, exclusion likely applies.
4. Kansas income tax: File Kansas Form K-40 for the child if wages exceed Kansas standard deduction ($3,605 single). Kansas income tax will apply to excess.

1. Red flags / do not do this:
2. Do not use the KSA 38-614(1) exemption to employ a child under 14 in a business subject to FLSA ... federal law still imposes a 14-year minimum.
3. Do not confuse the Kansas standard deduction ($3,605) with the federal standard deduction ($16,100+) ... the state tax savings from income-shifting are much smaller in Kansas than in states with federal conformity.
4. Do not assign hazardous occupations even under the KSA 38-614(1) family exemption ... the exemption is limited to "nonhazardous occupations."
5. Do not allow work during school session hours (KSA 38-614 final clause applies even to exempt employment).

8. Sources

• [STATUTE] KSA 38-601 ... https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0001.html
• [STATUTE] KSA 38-602 ... https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0002.html
• [STATUTE] KSA 38-603 ... https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0003.html
• [STATUTE] KSA 38-604 ... https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0004.html
• [STATUTE] KSA 38-605 ... https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0005.html
• [STATUTE] KSA 38-606 ... https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0006.html
• [STATUTE] KSA 38-614 ... https://www.ksrevisor.org/statutes/chapters/ch38/038_006_0014.html
• [STATUTE] KSA 79-32,119 (Kansas standard deduction) ... https://www.ksrevisor.org/statutes/chapters/ch79/079_032_0119.html
• [STATUTE] KSA 79-32,120 (Kansas itemized deduction) ... https://www.ksrevisor.org/statutes/chapters/ch79/079_032_0120.html
• [CASE] Casteel v. Brick Co., 83 Kan. 533, 112 P. 145 (1911)
• [CASE] Dressler v. Dressler, 167 Kan. 749, 208 P.2d 271 (1949)
• [CASE] Neville v. Wichita Eagle, 179 Kan. 197, 294 P.2d 248 (1956)
• [AGENCY GUIDANCE] Kansas Department of Labor ... https://www.dol.ks.gov/
• [AGENCY GUIDANCE] Kansas Department of Revenue ... https://www.ksrevenue.gov/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

KRS 339.210 -- Definition of "gainful occupation" (parent-employer exclusion)

As amended by 2024 Acts Ch. 119 (SB 128), enacted April 9, 2024:

Citation: KRS 339.210(1) (as amended, 2024 Acts Ch. 119)

Official URL (enacted act): https://apps.legislature.ky.gov/law/acts/24RS/documents/0119.pdf VERIFY: https://apps.legislature.ky.gov/law/acts/24RS/documents/0119.pdf

Note: The current codified KRS 339.210 in the LRC database was not directly retrievable via web during this research session due to page routing issues; the enacted text is confirmed in the enrolled Acts Ch. 119. Cross-reference the current codified version at:

VERIFY: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38900 (Chapter 339 table of contents, then .210)

KRS 339.220 -- Minor under fourteen not to be employed

Citation: KRS 339.220

Official URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32183

VERIFY: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32183

Key interaction: Because employment by a parent is excluded from "gainful occupation" under KRS 339.210, KRS 339.220's prohibition does not reach parent-employed minors. A minor of any age may work for a parent's business without triggering KRS 339.220's 14-year-old minimum, as long as the work is not manufacturing, mining, or commissioner-declared hazardous.

KRS 339.230 -- Restrictions on employment of minor between fourteen and eighteen

Citation: KRS 339.230

Official URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39815

VERIFY: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39815

Note: KRS 339.230 applies to "gainful occupation" -- employment by a parent outside manufacturing/mining/hazardous occupations falls outside "gainful occupation" per KRS 339.210 and is thus not subject to KRS 339.230 restrictions.

803 KAR 1:100 -- Kentucky Administrative Regulation on Child Labor (hours for 14-15 and 16-17)

Kentucky administrative regulations at 803 KAR 1:100 set the specific hour and day restrictions implementing KRS 339.230:

For 14-15 year olds (section 2(2)):

• Outside school hours only
• 40 hrs/week max when school not in session; 18 hrs/week when in session
• 8 hrs/day when school not in session; 3 hrs/school day; 8 hrs/non-school day
• Hours: 7 a.m.-7 p.m. (extended to 9 p.m. June 1 through Labor Day)

For 16-17 year olds (section 3(2)):

• 30 hrs/week when school in session (with parental permission possible extension to 32.5 or 40 hrs under specific conditions)
• Up to 40 hrs/week when school not in session
• 6 hrs/school day (with parental written permission possible extension to 6.5 hrs)
• Hours: 6 a.m.-10:30 p.m. on school-preceding days (with parental permission: until 11 p.m.); 6 a.m.-1 a.m. on non-school-preceding days

Citation: 803 KAR 1:100 (Kentucky Administrative Regulations)

Official URL: https://apps.legislature.ky.gov/law/kar/downloads/docs/6913/document.engrossed.pdf

VERIFY: https://apps.legislature.ky.gov/law/kar/downloads/docs/6913/document.engrossed.pdf

KRS 339.360 -- Age certificates

Age certificates under Chapter 339 are available for employers to use as proof of a minor's age. They are not a prerequisite to employment for parent-employed minors (who fall outside "gainful occupation") and are generally optional for other employers.

Citation: KRS 339.360

Official URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38900 (Chapter 339 listing)

VERIFY: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38900

Kentucky SUI family exemption -- Kentucky UI Employer Guide:

Citation: Kentucky UI Employer Guide (Kentucky Education and Workforce Development Cabinet)

Official URL: https://kewes.ky.gov/Documents/EMPLOYER_GUIDE.pdf

VERIFY: https://kewes.ky.gov/Documents/EMPLOYER_GUIDE.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• Prohibited from all "gainful occupation" (KRS 339.220)
• Exception (parent employer): Employment by a parent (or person standing in place of parent) is excluded from "gainful occupation" definition entirely (KRS 339.210), so a child of any age may work for a parent with no statutory age floor, in nonhazardous, non-manufacturing, non-mining occupations
• No hour restrictions under KRS 339 apply to parent-employed minors (outside "gainful occupation")

Ages 14-15:

• Gainful occupation: outside school hours only; 40 hrs/week non-school; 18 hrs/week school; 3 hrs/school day; 8 hrs/day non-school; 7 a.m.-7 p.m. (9 p.m. summer) (803 KAR 1:100, Section 2)
• Cannot work in manufacturing, mining, processing, power-driven machinery, transportation, construction, warehousing (803 KAR 1:100, Section 2(1))
• Parent-employed: KRS 339.210 carve-out removes all these restrictions for parent-employed minors in nonhazardous, non-manufacturing, non-mining work

Ages 16-17:

• Gainful occupation: 30 hrs/week school term (extendable with parent permission and school certification); 40 hrs/week non-school; 6 hrs/school day (803 KAR 1:100, Section 3)
• Curfew: 6 a.m.-10:30 p.m. school-preceding days; 6 a.m.-1 a.m. pre-non-school days
• Prohibited from commissioner-declared hazardous occupations (KRS 339.230(2)(a)); note parent-employer narrow exception for nonhazardous aspects of electrical trades if 16+ and under adult supervision
• Parent-employed: KRS 339.210 carve-out still applies for 16-17 year olds in non-manufacturing, non-mining, non-commissioner-hazardous work

4. Work Permit Step-by-Step (logistics)

No mandatory pre-employment permit in Kentucky. The age certificate process under KRS 339.360 is available but not required before employment begins.

Age Certificate Process (employer-optional):

1. Employer requests age certificate from the Department of Workplace Standards
2. Minor provides proof of age
3. Department issues certificate (used by employer as evidence of age)

Parent-owned business: Because employment by a parent is excluded from "gainful occupation" (KRS 339.210), Chapter 339 does not apply. No age certificate, no permit, no work authorization form is required by Kentucky law for a parent employing their own minor child in a parent-owned nonhazardous business.

Best practice documentation:

1. Written employment agreement stating the parent-employer relationship
2. Proof of child's date of birth on file
3. Detailed time logs and payroll records
4. Written job description confirming nonhazardous, non-manufacturing, non-mining role

5. Relevant Case Law / Administrative Guidance

Kentucky Department of Workplace Standards / 803 KAR 1:100: The administrative regulation explicitly states it "shall guide the Department of Workplace Standards in carrying out its responsibilities under the law and assist employers in understanding their obligations" and cross-references the KRS 339.210 definition of "gainful occupation," noting that parent-employer employment falls outside the regulation's scope.

VERIFY: https://apps.legislature.ky.gov/law/kar/downloads/docs/6913/document.engrossed.pdf

2024 SB 128 (Acts Ch. 119): The 2024 legislative amendment to KRS 339.210 (which added the nonprofit youth work program provisions and re-confirmed the parent-employer exclusion from "gainful occupation") became law on April 9, 2024, without the governor's signature.

VERIFY: https://apps.legislature.ky.gov/record/24rs/sb128.html

No directly on-point Kentucky state court decisions or AG opinions specifically addressing the KRS 339.210 parent-employer exclusion in the FMC income-shifting context were located as of June 2026. Federal authority controls on the federal tax structure question.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: Kentucky has a state individual income tax at a flat 3.5% rate (effective January 1, 2026, reduced from 4% by HB 1, 2025 session). Kentucky does NOT conform to the federal standard deduction. Kentucky uses its own annually adjusted standard deduction:

• 2025: $3,270 (Kentucky DOR)
• 2026: $3,360 (confirmed by Kentucky DOR)

Kentucky's IRC conformity date was updated to December 31, 2024 (HB 775, 2025 session). A child earning wages from a parent-owned FMC will owe Kentucky income tax at 3.5% on wages above $3,360 (2026). For example, a child earning $8,000 in Kentucky wages would owe Kentucky tax on approximately $4,640 at 3.5% = ~$162.

VERIFY: https://revenue.ky.gov/Individual/Individual-Income-Tax/Pages/default.aspx

FMC Entity Structure: The KRS 339.210 parent-employer exclusion from "gainful occupation" applies to employment "by their own parents." A parent-owned SMLLC taxed as disregarded entity is treated as the parent for this purpose (the parent is the employer). An S-corp or C-corp is not the parent -- the entity is the employer, and the carve-out does not apply.

Workers' Compensation: Kentucky workers' compensation (KRS Chapter 342) requires most employers with one or more employees to carry coverage. There is no general statutory exclusion for family employees in Kentucky workers' comp.

PRACTITIONER TO CONFIRM: Whether Kentucky workers' comp (KRS Chapter 342) provides a family-employee exemption for children employed by a parent ... most employers with one or more employees must carry coverage under KRS § 342.630; no statutory family exclusion confirmed from primary source ... https://labor.ky.gov/workplace-standards/workers-comp/

Unemployment Insurance (SUI): The Kentucky UI Employer Guide confirms that in a sole proprietorship, service by a child under 21 of the proprietor is "non-covered" (excluded from SUI). In a qualifying two-parent partnership, the same exemption applies if the child is under 21 of each partner. No exception for corporations.

VERIFY: https://kewes.ky.gov/Documents/EMPLOYER_GUIDE.pdf

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: Use parent-owned SMLLC taxed as disregarded entity. Confirm single-member ownership (or two-parent membership for two-parent household). Do not elect S-corp status -- this removes the KRS 339.210 parent-employer exclusion and the Kentucky SUI family exemption.

1. Age-appropriate role mapping:
2. Any age (parent-owned, nonhazardous): administrative support, filing, data entry, content creation under parental direction; no statutory age floor for parent-employed minors in Kentucky
3. Ages 14+: social media management, light bookkeeping, customer communications, photography, video editing
4. Ages 16+: expanded digital marketing, research, client-facing roles
5. Avoid manufacturing, mining, and all 17 FLSA hazardous occupations regardless of age or parent relationship

1. Permit/certificate actions: No permit or certificate required for parent-employed minors in Kentucky. Maintain internal records as best practice.

1. Payroll & documentation actions:
2. Establish payroll with written job description and market-rate wages
3. Under 18: withhold federal income tax; FICA exempt under 18 (sole prop/disregarded LLC); FUTA exempt under 21
4. Kentucky state income tax: withhold at 3.5% flat rate on wages above $3,360 (2026 standard deduction); use Kentucky's withholding tables (K-4 form)
5. Kentucky SUI: not owed for child under 21 in sole proprietorship
6. Issue Form W-2 at year-end; maintain time logs and job descriptions

1. State-specific filings / insurance:
2. Kentucky state income tax return required for child if Kentucky taxable income exceeds filing threshold
3. Workers' comp: obtain coverage for child-employee (no confirmed Kentucky family exemption from mandatory coverage)
4. Kentucky SUI: not required for qualifying family employees in sole proprietorship

1. Red flags / "do not do this" list:
2. Do NOT operate FMC as corporation or S-corp -- loses KRS 339.210 parent-employer exclusion and SUI family exemption
3. Do NOT assign manufacturing, mining, or commissioner-declared hazardous work to the child under any family arrangement
4. Do NOT rely on a two-parent partnership unless both partners are biological/legal parents of the child
5. Do NOT assume no Kentucky income tax -- Kentucky's 3.5% flat rate applies above a $3,360 standard deduction
6. Do NOT pay wages that are not commercially reasonable and supported by documented actual work

8. Sources

• [STATUTE] KRS 339.210 (gainful occupation definition, parent-employer exclusion): https://apps.legislature.ky.gov/law/acts/24RS/documents/0119.pdf (2024 Acts Ch. 119, enacted text)
• [STATUTE] KRS 339.220 (minor under 14 prohibition): https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32183
• [STATUTE] KRS 339.230 (restrictions 14-18, parent-employer hazardous work exception): https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39815
• [STATUTE] KRS Chapter 339 table of contents: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38900
• [STATUTE] 803 KAR 1:100 (Kentucky child labor administrative regulations): https://apps.legislature.ky.gov/law/kar/downloads/docs/6913/document.engrossed.pdf
• [AGENCY GUIDANCE] Kentucky UI Employer Guide (SUI family exemption): https://kewes.ky.gov/Documents/EMPLOYER_GUIDE.pdf
• [AGENCY GUIDANCE] Kentucky DOR Individual Income Tax (4% flat rate, standard deduction): https://revenue.ky.gov/Individual/Individual-Income-Tax/Pages/default.aspx
• [AGENCY GUIDANCE] 2025 Kentucky Individual Income Tax Instructions: https://revenue.ky.gov/Forms/740%20Packet%20Instructions%20(2025).pdf
• [SECONDARY] 2024 SB 128 legislative record: https://apps.legislature.ky.gov/record/24rs/sb128.html

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

La. R.S. 23:162 -- Minors under fourteen; general prohibition against employment

Citation: La. R.S. 23:162

Official URL: https://www.legis.la.gov/legis/LawPrint.aspx?d=83629

VERIFY: https://www.legis.la.gov/legis/LawPrint.aspx?d=83629

La. R.S. 23:163 -- Minors under sixteen; prohibited employments

Citation: La. R.S. 23:163

Official URL: https://legis.la.gov/legis/Law.aspx?d=83640 (as confirmed by the LawPrint version)

VERIFY: https://legis.la.gov/legis/Law.aspx?d=83640

La. R.S. 23:215 -- Minors; prohibited hours; maximum work week

Citation: La. R.S. 23:215

Official URL: https://legis.la.gov/legis/Law.aspx?d=83837

VERIFY: https://legis.la.gov/legis/Law.aspx?d=83837

La. R.S. 23:181 / 23:184 -- Employment certificates (as amended by 2026 Act 232)

The Louisiana Legislature enacted HB 232 (2026 Regular Session) amending R.S. 23:181, 184, 187, and 191. Under the amended scheme:

Citation: La. R.S. 23:184 (as amended by 2026 HB 232 / enrolled version)

Official URL (enrolled bill): https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1466779 VERIFY: https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1466779

Pre-2026 current codified version: VERIFY: https://www.legis.la.gov/Legis/LawsContents.aspx (Title 23, Subpart III -- Employment Certificates)

La. R.S. 23:161 -- Minors; prohibited employments (all minors)

Per the official legislature website search result confirming § 23:161: Minors, except those indentured as apprentices, shall not be employed, permitted, or suffered to work in: oiling/cleaning machinery; mines or quarries; stone cutting or polishing; explosives plants; operations involving radiation; logging operations; motor vehicle driving (under 17 prohibited; 17+ with restrictions); operating passenger or freight elevators; spray painting or occupations involving lead exposure; alcoholic beverage establishments (with limited exceptions); and any other occupation the secretary determines hazardous after public hearing.

Citation: La. R.S. 23:161

Official URL: https://www.legis.la.gov/legis/Law.aspx?d=83619

VERIFY: https://www.legis.la.gov/legis/Law.aspx?d=83619

3. Hours / Prohibited Occupations for Minors (by age band)

Under 12:

• Prohibited from all employment (La. R.S. 23:162(A))

Ages 12-13 (parent/guardian-owned business only):

• May be employed only if parent/guardian is owner or partner, works only under direct parental supervision, all § 14-15 protections apply, and employment certificate obtained
• Hours: same as 14-15 year olds (below)
• Day/week limits for 14-15 apply: 3 hrs/school day; 18 hrs/school week; 8 hrs/non-school day; 40 hrs/non-school week
• Curfew: 7 a.m.-7 p.m. (extended to 9 p.m. June 1 through Labor Day)

Ages 14-15:

• Outside school hours only (except approved programs)
• 3 hours/school day; 18 hours/school week
• 8 hours/non-school day; 40 hours/non-school week
• Hours: 7 a.m. to 7 p.m. (extended to 9 p.m. June 1 through Labor Day) (La. R.S. 23:215(B))
• Week maximum: 40 hours (La. R.S. 23:215(C))
• May not work in manufacturing, processing, power-driven machinery, poolrooms, certain alcohol establishments, delivery/messenger services (La. R.S. 23:163)
• Meal break: 30 minutes after 5 consecutive hours of work (La. R.S. 23:213)

Ages 16-17:

• No weekly hour maximum under Louisiana law
• Curfew (non-graduates): 16-year-olds no work 11 p.m.-5 a.m. on school-preceding days; 17-year-olds no work midnight-5 a.m. on school-preceding days (La. R.S. 23:215(A))
• Rest break: 8-hour rest between end of one workday and start of next (all minors)
• Meal break: 30 minutes after 5 consecutive hours (La. R.S. 23:213)
• Prohibited from all La. R.S. 23:161 occupations (mines, logging, explosives, radiation, etc.)
• Prohibited from driving as part of employment if 16 or younger; 17-year-olds may drive with restrictions (§ 23:161(10))

4. Work Permit Step-by-Step (logistics)

Louisiana requires an employment certificate for every minor under 18 before starting work. As of 2026 (HB 232 / Act 232, effective upon governor signature or lapse of signing period):

Revised procedure (2026 Act 232):

1. Minor personally applies for the certificate and obtains written permission from parent or legal guardian
2. Minor gathers proof of age: birth certificate, short-form birth certification card, or signed statement from recorder of births
3. Minor submits completed form and documents to the employer (the "issuing authority" under the new Act)
4. Employer reviews, approves, and the minor signs the certificate in the employer's presence
5. Minor receives certificate and delivers to employer
6. Employer maintains certificate on file while minor is employed, plus 14 days after termination

Important note on parent-owned business: La. R.S. 23:162(B)(5) specifically requires that minors aged 12-13 working for a parent-owned business must obtain an employment certificate under R.S. 23:184. Louisiana does NOT exempt parent-owned businesses from the employment certificate requirement. Even after the 2026 procedural changes (employer as issuing authority), the parent who owns the business acts in a dual role as both employer and parent -- the certificate must still be completed and maintained.

Prior procedure (pre-2026, still reflected in codified statutes): The certificate was issued by the city or parish superintendent of schools; school board requirements have been eliminated by Act 232 (2026).

VERIFY current codified text: https://www.legis.la.gov/Legis/LawsContents.aspx (Title 23, Part I, Subpart III)

5. Relevant Case Law / Administrative Guidance

Louisiana Workforce Commission guidance: The Louisiana Workforce Commission's Minor Labor Law Placard (revised September 27, 2022) confirms: "No minor under the age of 18 years shall be employed until the employer has procured and has on file an employment certificate for such minor issued by the city or parish superintendent of schools." This reflects the pre-2026 procedure; the 2026 Act 232 removes school board involvement.

VERIFY (placard): https://www.dickinson.edu/download/downloads/id/15337/louisiana_workforce_commission_minor_labor_law.pdf (secondary; points to La. R.S. 23:241 for enforcement)

No directly on-point Louisiana state court decisions or AG opinions specifically addressing the parent-employer / FMC income-shifting question were located as of June 2026. Federal authority controls on the tax structure question.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: Louisiana has a state individual income tax. Louisiana does not conform to the federal standard deduction -- Louisiana uses its own standard deduction structure. Louisiana's income tax is a flat 3% rate (effective for taxable periods beginning on or after January 1, 2025, per 2024 2nd Extraordinary Session reform). A child employed by a parent-owned FMC who earns wages in Louisiana would owe Louisiana income tax on those wages to the extent they exceed Louisiana's own combined standard deduction/personal exemption structure.

Louisiana's combined standard deduction/personal exemption is lower than the federal standard deduction ($16,100 for single filers in 2026), which means Louisiana income tax may apply to the child's wages even in ranges where no federal tax is due.

CONFIRMED: Louisiana combined standard deduction/personal exemption amounts per Louisiana DOR:

• Tax years 2024 and prior: $4,500 (single) / $9,000 (married filing jointly)
• Tax years 2025-2026: $12,500 (single) / $25,000 (married filing jointly) ... enacted by H.B. 10, signed Dec. 4, 2024 (2024 2nd Extraordinary Session), effective Jan. 1, 2025; CPI-adjusted annually beginning Jan. 1, 2026.

Citation: La. R.S. 47:294(A) as amended by 2024 H.B. 10

Official URL: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/what-are-the-individual-income-tax-rates-and-brackets/

VERIFY: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/what-are-the-individual-income-tax-rates-and-brackets/

Workers' Compensation: Louisiana workers' compensation law (La. R.S. 23:1021 et seq.) requires employers to maintain workers' comp coverage. Louisiana does not have a statutory blanket exemption for minor children of a sole proprietor from workers' comp coverage requirements based on family relationship alone. If the business employs the child as an employee (which the FMC structure contemplates), the child is a covered employee.

PRACTITIONER TO CONFIRM: Whether Louisiana law provides a family or domestic service exemption from workers' comp coverage for children employed by a parent in a parent-owned FMC ... La. R.S. 23:1021 et seq. does not contain a confirmed family exclusion; LDOL site (ldol.state.la.us) returned DNS error at time of research ... https://www.laworks.net/

Unemployment Insurance (SUI): Louisiana unemployment insurance law (La. R.S. 23:1472 et seq.) tracks the federal structure. The federal FUTA exemption for children under 21 employed by a parent sole proprietor suggests a parallel Louisiana SUI exclusion, but the specific Louisiana SUI statute excluding child-of-parent employment from "employment" definition was not confirmed from a primary source in this research.

Citation: La. R.S. 23:1472(12)(H)(IV)

Official URL: https://law.justia.com/codes/louisiana/revised-statutes/title-23/rs-23-1472/

VERIFY: https://law.justia.com/codes/louisiana/revised-statutes/title-23/rs-23-1472/

Note: Age threshold is 21; applies to sole proprietorship/parental partnership; does not apply to corporations.

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: Use a parent-owned SMLLC taxed as a disregarded entity. Confirm the SMLLC operating agreement names only the parent(s) as members. S-corp election loses federal FICA/FUTA exemptions and may jeopardize the La. R.S. 23:162(B) parent-employer basis for employing 12-13 year olds.

1. Age-appropriate role mapping:
2. Ages 12-13 (parent-owned business, direct supervision): administrative tasks, filing, data entry, content assistance -- all subject to 14-15 year old hour restrictions
3. Ages 14-15: social media management, customer-facing tasks (non-hazardous), light bookkeeping
4. Ages 16-17: expanded digital marketing, photography, video production, research, all non-hazardous administrative roles

1. Permit/certificate actions:
2. Louisiana requires employment certificate for ALL minors under 18 including those working in parent-owned businesses
3. Under 2026 Act 232: parent/employer completes the certificate process; minor signs in employer's presence; employer maintains file
4. Obtain before first day of work; certificate is employer-specific
5. Parent acting as both parent and employer: use your best judgment on the dual-role dynamic; consult Louisiana Workforce Commission for guidance on the new 2026 process

1. Payroll & documentation actions:
2. Establish payroll with written job description and market-rate wages
3. Under 18: withhold federal income tax; FICA exempt under 18 (federal, sole prop/disregarded LLC); FUTA exempt under 21 (federal)
4. Louisiana income tax: withhold Louisiana state income tax based on Louisiana withholding tables at the flat 3% rate; issue Form L-1 or equivalent
5. Issue Form W-2 at year-end; maintain time logs and pay stubs

1. State-specific filings / insurance:
2. Louisiana state income tax returns required for child if Louisiana taxable income exceeds exemption threshold
3. Workers' comp: obtain coverage for child-employee through Louisiana's private market or Louisiana Workers' Compensation Corporation (LWCC)
4. SUI: child under 21 employed by parent in sole prop/disregarded LLC is excluded from Louisiana SUI per La. R.S. 23:1472(12)(H)(IV); does not apply if FMC is a corporation or S-corp
5. Employment certificate: maintain on file per La. R.S. 23:184 requirements

1. Red flags / "do not do this" list:
2. Do NOT fail to obtain an employment certificate -- Louisiana has NO parent-business exemption from this requirement
3. Do NOT employ a child under 12 in any capacity under Louisiana law (no exception for parent-owned businesses for under-12)
4. Do NOT employ 12-13 year olds except in direct parental supervision context
5. Do NOT operate FMC as corporation -- loses parental-employment basis for under-14 and loses federal payroll tax benefits
6. Do NOT assume Louisiana's income tax standard deduction matches federal -- Louisiana's deduction is substantially lower

8. Sources

• [STATUTE] La. R.S. 23:162 (minors under 14, parent exemption): https://www.legis.la.gov/legis/LawPrint.aspx?d=83629
• [STATUTE] La. R.S. 23:163 (prohibited employments under 16): https://legis.la.gov/legis/Law.aspx?d=83640
• [STATUTE] La. R.S. 23:215 (prohibited hours, maximum hours): https://legis.la.gov/legis/Law.aspx?d=83837
• [STATUTE] La. R.S. 23:161 (prohibited employments, all minors): https://www.legis.la.gov/legis/Law.aspx?d=83619
• [STATUTE] La. R.S. 23:184 (employment certificates, amended): https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1466779 (2026 enrolled HB 232)
• [STATUTE] Louisiana Revised Statutes Title 23 Table of Contents: https://www.legis.la.gov/legis/Laws_Toc.aspx?folder=97&title=23
• [AGENCY GUIDANCE] Louisiana Workforce Commission Minor Labor Law Placard (2022): https://www.dickinson.edu/download/downloads/id/15337/louisiana_workforce_commission_minor_labor_law.pdf [SECONDARY]
• [SECONDARY] Baker Donelson Louisiana Employment Law Guide: https://www.bakerdonelson.com/easy-guide-louisiana
• [AGENCY GUIDANCE] Louisiana Department of Revenue (income tax, flat 3% rate): https://revenue.louisiana.gov/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Minimum age -- under 14:

VERIFY: https://legislature.maine.gov/statutes/26/title26ch7.pdf

Hazardous employment for minors under 18:

VERIFY: https://legislature.maine.gov/statutes/26/title26ch7.pdf

Occupational restrictions and family exemptions (14-15):

VERIFY: https://legislature.maine.gov/statutes/26/title26ch7.pdf

Minors 16-17 -- family employment:

VERIFY: https://legislature.maine.gov/statutes/26/title26ch7.pdf

Work permit requirement:

VERIFY: https://legislature.maine.gov/statutes/26/title26ch7.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (family-business exception applies): The § 771 and § 773-A family exemptions remove the general prohibition. A child under 14 employed solely in a parent-owned business may work, but cannot be employed in any federally-declared hazardous occupation (29 CFR Part 570 HO list).

Ages 14-15 (Me. Rev. Stat. Ann. tit. 26, § 774(2)):

Ages 16-17 (Me. Rev. Stat. Ann. tit. 26, § 774(1)):

Prohibited hazardous occupations (all minors under 18): Maine rules mirror 29 CFR Part 570 Hazardous Occupation Orders (HOs) 1-17, which include: manufacturing/storing explosives, motor vehicle driving, coal mining, logging/sawmilling, power-driven woodworking machines, radioactive substances, power-driven hoisting apparatus, power-driven metalworking, mining, slaughtering/meatpacking, power-driven bakery machines, power-driven paper-products machines, brick/tile manufacturing, power-driven circular/band saws, wrecking/demolition, roofing, and excavation.

Additional Maine-specific prohibitions (§ 772(2)): nude entertainment establishments, registered cannabis dispensaries, cannabis cultivation/sale establishments.

VERIFY: https://legislature.maine.gov/statutes/26/title26ch7.pdf

4. Work Permit Step-by-Step (logistics)

Maine work permits are required for all minors under 16 in covered employment. The statutory basis is Me. Rev. Stat. Ann. tit. 26, § 775.

Step-by-step procedure:

1. Minor finds employment. Employer and minor agree on job and hours.
2. Parent/guardian signs permit form. The permit form (furnished by Maine Bureau of Labor Standards, available at maine.gov/labor) requires the parent's or guardian's signature. (§ 777: "Permit forms may be made available by the bureau and submitted in paper or electronic format as long as the parent's or guardian's signature is submitted to the superintendent.")
3. Superintendent (or designee) reviews and signs. If school is in session, the minor must be enrolled, not truant, not under suspension, and passing a majority of courses. If summer, minor must furnish certificate of completing grades K-8. (§ 775(2))
4. Evidence of age submitted. Certified birth certificate, baptismal record, or passport. (§ 775(3))
5. Bureau issues the permit. The Director of the Bureau of Labor Standards (or agent) issues the work permit to the minor upon verifying superintendent approval and that employment conforms with law. The permit is valid only for the specific employer and positions listed. (§ 775(3-A))
6. Employer keeps permit on file. Accessible to attendance officers and bureau agents. (§ 775(5))

Parent-owned-business exemption from permit? The permit exemption in § 775(6) covers only agricultural work and household work -- it does not expressly exempt a parent-owned business from the permit requirement for under-16 employees. The substantive age and occupational exemptions (§§ 771, 773-A) apply, but whether a permit is still needed for a parent-owned LLC employing the owner's own child under 16 is not clearly stated in the statute. Practitioners should confirm with Maine DOL Bureau of Labor Standards before omitting the permit.

PRACTITIONER TO CONFIRM: Whether a parent-owned LLC is expressly exempt from the 26 M.R.S. § 775 work-permit requirement ... the statute as retrieved confirms permits are required for employed minors (26 M.R.S. § 775(3)), and the only explicit exemptions at § 775(6) are for agricultural field-crop work, non-hazardous agricultural employment, household work, and DOL-funded summer youth programs. No express exemption for a parent-owned LLC employing the owner's child was located in the statute text. The substantive child-labor exemptions at §§ 771/773-A still apply to limit the types of work and hazardous occupations, but the permit requirement itself appears to apply absent a specific exemption. Confirm with Maine Bureau of Labor Standards whether the parent/child relationship in an LLC context triggers an administrative exemption from the permit. Best available source: https://legislature.maine.gov/statutes/26/title26sec775.html (official Maine Legislature site, retrieved June 29, 2026).

5. Relevant Case Law / Administrative Guidance

No directly on-point Maine state case law or Attorney General opinion located as of June 2026 specifically addressing income-shifting through parent-owned FMC employing a minor child, or interpreting the family exemption in §§ 771/773-A in the context of an LLC. Federal authority (FLSA § 3(l); 29 CFR 570.126) and the IRS FMC framework control at the federal layer.

Maine Bureau of Labor Standards publishes general child labor fact sheets at https://www.maine.gov/labor/labor_laws/index.shtml, but no AG opinion or formal guidance on the FMC/income-shifting question was located.

6. FMC / Income-Shifting Interaction (state-specific notes)

Entity structure note: The family exemptions in §§ 771 and 773-A apply to "a business solely owned by the minor's parents." A single-member LLC (SMLLC) owned entirely by one parent almost certainly qualifies as a "business solely owned by the minor's parents" for the child labor exemption purposes, consistent with the FLSA approach. A multi-member LLC where at least one member is not a parent would not qualify. No Maine case has directly addressed this for LLC structures -- practitioners should proceed conservatively and confirm with Maine DOL.

Maine income tax: Maine has a personal income tax. It uses a graduated rate structure.

Maine conforms to federal adjusted gross income (AGI) as its starting point. For tax years 2020 through 2025, Maine's standard deduction equaled the federal standard deduction (Me. Rev. Stat. Ann. tit. 36, § 5124-C(1-A): "For tax years beginning on or after January 1, 2020 and before January 1, 2026, the standard deduction of a resident individual is equal to the federal standard deduction, subject to the phase-out..."). Effective January 1, 2026, Maine decoupled and uses its own state-defined standard deduction: for 2026, $15,300 (single) / $30,600 (married filing jointly), with a $5,300 personal exemption, per Maine Revenue Services.

Practical note: Maine conformed to the federal standard deduction through TY 2025 (the year before decoupling). For TY 2026 forward, the child's Maine standard deduction is the Maine-defined figure ($15,300 single for 2026), not the federal amount. Maine did not adopt H.R. 1's increased federal standard deduction for state purposes.

VERIFY (Maine standard deduction): https://legislature.maine.gov/statutes/36/title36sec5124-C.html VERIFY (Maine tax conformity Oct 2025): https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/ta_october2025_vol35_iss14_0.pdf

Child's state income tax result (illustrative): A minor child earning wages paid by a parent-owned SMLLC will file a Maine individual income tax return if income exceeds the filing threshold. The child claims the Maine standard deduction (the Maine-defined figure of $15,300 for a single filer in TY 2026). Because the child has no other income, wages up to the standard deduction amount are effectively free of Maine income tax.

Workers' compensation: Maine Workers' Compensation Act, Me. Rev. Stat. Ann. tit. 39-A, § 102(11)(5):

Key point: In a parent-owned SMLLC in Maine, the minor child may waive workers' compensation coverage in writing with board approval. The waiver is not automatic -- it requires a written statement and board finding that it was not a prerequisite to employment. Without a valid waiver, the minor child working in the LLC is presumptively covered under Maine WC and the LLC must carry WC insurance.

VERIFY: https://legislature.maine.gov/statutes/39-A/title39-Asec102.html

Unemployment insurance (SUTA): Maine Employment Security Law (26 M.R.S. § 1043(11)(C)) excludes from "employment" service performed by a child under 18 in the employ of his or her father or mother... but only if the employer is a sole proprietorship. If the employer is an LLC, the SUTA exemption is generally not available unless the LLC is classified as a sole proprietor/disregarded entity and the specific statutory language covers it. Maine's unemployment statutes should be reviewed directly.

Verified text of 26 M.R.S. § 1043(11)(F)(7) (the SUTA family-employment exclusion):

Note on the citation: The file previously referenced 26 M.R.S. § 1043(11)(C). The official text retrieved from the Maine Legislature website confirms that subsection 11(C) is a geographic coverage election provision (services performed outside the state) and does not contain the family exclusion. The family exclusion is located at § 1043(11)(F)(7). The provision excludes services performed by a child under 18 in the employ of that child's parent. No age qualifier distinguishes sole proprietorship from LLC; the text says "parent" without entity-type limitation, but practitioners should note the FUTA analog and confirm whether Maine DWD has issued guidance on the disregarded SMLLC question.

VERIFY: https://legislature.maine.gov/statutes/26/title26sec1043.html (official Maine Legislature site, retrieved June 29, 2026).

7. State Implementation Playbook

1. Entity & ownership setup: Use a parent-owned SMLLC (single member, disregarded entity for federal taxes). Sole ownership by one parent preserves the FLSA and state child labor family exemptions. Adding an S-corp or a non-parent partner breaks the FICA/FUTA exemption and likely removes state child labor exemptions.

1. Age-appropriate role mapping:
2. Under 10: No formal paid employment advisable even under the family exemption; documentation burdens outweigh value.
3. 10-13: Light tasks -- social media content appearance, product modeling for parent's business, simple filing. Keep hours minimal, document with written job description.
4. 14-15: Expand to bookkeeping assistance, content creation, photography, administrative support. Under Maine law, occupational restrictions for under-16 are lifted for parent-owned business (§ 773-A(2)), but hazardous work remains prohibited.
5. 16-17: Nearly any non-hazardous task. Bookkeeping, social media management, client-facing administrative roles.

1. Permit/certificate actions:
2. For minors under 16: Obtain work permit from Maine Bureau of Labor Standards (form signed by superintendent). Do not skip this step for under-16 until confirming with Maine DOL that a parent-owned LLC is exempt from § 775.
3. For minors 16-17: No work permit required, but maintain employment records per § 774(7).
4. Keep permit on file at place of business.

1. Payroll & documentation actions:
2. Put the child on payroll (not contract payments). Issue W-2.
3. Pay at least federal minimum wage for actual hours worked.
4. Keep time records per § 774(7): "Every employer shall keep a time book or record for every minor employed in any occupation... stating the number of hours worked by each minor on each day of the week."
5. Write and file a job description with specific duties.
6. Keep contemporaneous records showing work was actually performed.

1. State-specific filings/insurance:
2. If WC waiver is desired: File written waiver with Maine Workers' Compensation Board before first day of work; obtain board approval. Until approved, carry WC insurance.
3. Maine SUTA: Register with Maine Department of Labor if employing the child; check whether SMLLC is covered by the family employment SUTA exemption.
4. Maine income tax withholding: Required for wages above threshold; file Form W-4 ME.

1. Red flags and "do not do this" list:
2. Do NOT employ the minor in any HO 1-17 hazardous occupation, even in a parent-owned business (§§ 771, 773-A expressly prohibit this).
3. Do NOT convert the employing entity to a C-corp, S-corp, or LLC taxed as a corporation -- doing so eliminates FICA/FUTA exemptions and likely removes state child labor exemptions.
4. Do NOT add a non-parent member to the LLC.
5. Do NOT pay the child in cash without payroll records, W-2, or tax filings.
6. Do NOT exceed the hours limits applicable to the minor's age band during school weeks.
7. Do NOT assume the work permit requirement is waived for a parent-owned LLC for under-16 children without confirming with Maine DOL.

8. Sources

• [STATUTE] Me. Rev. Stat. Ann. tit. 26, §§ 771, 772, 773-A, 774, 775, 777, 781, 782 ... Child Labor (Title 26, Chapter 7): https://legislature.maine.gov/statutes/26/title26ch7.pdf
• [STATUTE] Me. Rev. Stat. Ann. tit. 39-A, § 102 ... Workers' Compensation definitions (employee, family waiver): https://legislature.maine.gov/statutes/39-A/title39-Asec102.html
• [STATUTE] Me. Rev. Stat. Ann. tit. 36, § 5124-C ... Standard deduction: https://legislature.maine.gov/statutes/36/title36sec5124-C.html
• [AGENCY GUIDANCE] Maine Revenue Services, Tax Alert Oct. 2025 (Maine conformity status): https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/ta_october2025_vol35_iss14_0.pdf
• [AGENCY GUIDANCE] Maine Revenue Services, Consolidated Conformity Report Sept. 2025: https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/Consolidated%20Report%20on%20Maine%20Tax%20Conformity%20and%20the%20Provisions%20of%20Federal%20Public%20Law%20No.%20119-21.pdf
• [SECONDARY] Maine DOL Bureau of Labor Standards (child labor overview): https://www.maine.gov/labor/labor_laws/index.shtml

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Md. Labor & Employment § 3-202 ... State policy

Citation: Md. Labor & Employment § 3-202 Official URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-202&enactments=false&archived=false VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-202&enactments=false&archived=false

Md. Labor & Employment § 3-203 ... Application of subtitle; exemptions (including parent-owned business)

Citation: Md. Labor & Employment § 3-203 Official URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-203&enactments=false&archived=false VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-203&enactments=false&archived=false

KEY ANALYSIS: This is one of the most clearly drafted family exemptions in the Mid-Atlantic region. When ALL four conditions are met:

1. Outside the minor's school hours
2. Not manufacturing or mining
3. Not a hazardous occupation restricted under § 3-213(c)(1) or (2)
4. Work in a business owned or operated by a parent

... the entire subtitle (including work permit requirement, hours limits, and prohibited occupations) does not apply.

Important limitations:

• "Manufacturing or mining" are categorically excluded ... no exemption for a minor in a manufacturing FMC
• Hazardous occupations under § 3-213(c)(1) or (2) are never exempt
• Must be "outside school hours set for that minor" ... school-hour work is never exempt regardless of family ownership

Md. Labor & Employment § 3-205 ... Work permit requirement

Citation: Md. Labor & Employment § 3-205 Official URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-205&enactments=false&archived=false VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-205&enactments=false&archived=false

NOTE: This requirement applies when the subtitle applies. If the § 3-203 exemption is satisfied, the subtitle (including § 3-205) does not apply ... no work permit is required for qualifying parent-owned business work.

Md. Labor & Employment § 3-206 ... Work permit application process

Citation: Md. Labor & Employment § 3-206 Official URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-206&enactments=false&archived=false VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-206&enactments=false&archived=false

Md. Labor & Employment § 3-211 ... Hours for minors under 16

Citation: Md. Labor & Employment § 3-211 Official URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-211&enactments=false&archived=false VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-211&enactments=false&archived=false

NOTE: These hours limits apply when the subtitle applies. They do NOT apply to qualifying parent-owned business work (§ 3-203 exemption). However, because the § 3-203 exemption requires work "outside school hours," a parent cannot circumvent the school-attendance laws through this exemption.

Md. Labor & Employment § 3-213 ... Prohibited occupations

Citation: Md. Labor & Employment § 3-213 Official URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-213&enactments=false&archived=false VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-213&enactments=false&archived=false

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (general rule)

• Generally prohibited from most employment under Maryland subtitle; minimum age not explicitly stated as 14 in the sections retrieved, but the prohibited occupation restrictions for under-16 effectively preclude most work
• Parent-owned business exemption (§ 3-203) applies: outside school hours, nonmanufacturing, nonhazardous work is exempt from the subtitle

14–15 (under 16)

• When subtitle applies: max 4 hrs/school day; max 8 hrs non-school day; max 23 hrs/school week; max 40 hrs/vacation week (§ 3-211)
• No work before 7 a.m.; after Labor Day–Memorial Day not after 8 p.m.; Memorial Day–Labor Day not after 9 p.m. (§ 3-211)
• Cannot work at manufacturing sites, construction, workrooms where goods are manufactured, scaffolding, with acids/lye/gas/paint, power-driven machinery (except office machines) (§ 3-213(b))

16–17

• Hours rules under subtitle (to be verified from § 3-211 for 16-17 specifically ... § 3-211 text retrieved covers only under 16)
• § 3-213(a) prohibitions apply to all minors: blast furnaces, distilleries, railroads, electrical wire erection, dock/wharf, cleaning/oiling machinery
• FLSA HOs incorporated by reference (§ 3-213(c)(2))

Verified hour restrictions for minors ages 16–17 (Md. Code, Labor & Employment § 3-210):

Section 3-211 covers only minors under age 16. For minors 16–17 years old, the applicable statute is § 3-210 (the general hours-of-work section that applies to all minors under 18). As confirmed by the Maryland Department of Labor official guidance and the § 3-210 text:

Summary for 16–17 year olds (from MD DOL official guidance):

• May not spend more than 12 hours in a combination of school hours and work hours each day.
• Must be allowed at least 8 consecutive hours of non-work, non-school time in each 24-hour period.
• May not work more than 5 consecutive hours without a nonworking period of at least 30 minutes.
• No specific nightwork curfew applies to 16-17 year olds under state law (unlike 14-15 year olds).

VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-210&enactments=false&archived=false (official Maryland General Assembly, retrieved June 29, 2026); also https://labor.maryland.gov/labor/wages/empm.shtml (Maryland Department of Labor official guidance).

4. Work Permit Step-by-Step (logistics)

If the § 3-203 exemption applies (parent-owned business, outside school hours, nonmanufacturing, nonhazardous):

• No work permit required ... the subtitle does not apply
• Document the qualifying conditions in employment records

If the § 3-203 exemption does NOT apply (e.g., work during school hours, manufacturing, or non-parent employer):

1. Parent or guardian applies online to MD Commissioner of Labor and Industry for a work permit (§ 3-206(a))
2. Application includes: age verification; description of work; parental approval; other information as required by Commissioner (§ 3-206(a))
3. Commissioner issues permit if employment is allowed under the subtitle (§ 3-206(b))
4. Special permit may be issued for otherwise restricted work under specific conditions (§ 3-206(c))
5. Employer must possess the work permit before the minor begins work (§ 3-205)

Parent-owned-business exemption from permit: YES, when all § 3-203 conditions are satisfied.

VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-206&enactments=false&archived=false

5. Relevant Case Law / Administrative Guidance

No directly on-point Maryland state case law located as of June 29, 2026 addressing FMC income-shifting and the parent-owned business exemption under § 3-203.

MD Comptroller Guidance (2025 tax changes): The MD Comptroller issued guidance on 2025 standard deduction changes and income tax rate increases. See: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/alerts/tax-alert-changes-to-standard-and-itemized-deductions-and-to-state-and-local-income-tax-rates-from-the-2025-legislative-session.pdf

Federal authority controls on FLSA parent exemption scope.

6. FMC / Income-Shifting Interaction (state-specific notes)

FMC structure interaction:

• Maryland's § 3-203(4)(iii) explicitly exempts work in a business a parent owns or operates from the subtitle's requirements when performed outside school hours, not in manufacturing or mining, and not in a Commissioner-restricted hazardous occupation
• This is a meaningful exemption for FMC office/admin/creative/marketing work
• An FMC engaged in manufacturing is NOT covered by the exemption
• Work permit, hours limits, and prohibited occupation rules do not apply to qualifying work
• FLSA minimums still apply (minimum age 14 for nonhazardous non-ag employment; no FLSA parent exemption from HO rules)

State Income Tax Maryland has a graduated state income tax plus mandatory county-level income tax. The top state rate is 6.5% on income above $1M (bracket enacted by the BRFA of 2025, effective for tax years beginning after December 31, 2024).

Standard deduction: Maryland does NOT conform to the federal standard deduction. MD uses its own fixed-dollar standard deduction amounts, COLA-adjusted annually for tax years after 2025.

• Single, married filing separately, or dependent filers: $3,350 (tax year 2025, per 2025 BRFA; confirm the current-year COLA-adjusted figure with the MD Comptroller before filing)
• Married filing jointly, head of household, qualifying surviving spouse: $6,700 (tax year 2026)

Source: MD Comptroller Tax Alert, 2025 Legislative Session; also Md. Code, Tax-General § 10-217 VERIFY: https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=gtg&section=10-217

Implication for minor employee: A child earning $10,000 from the parent's FMC will have MD taxable income of approximately $6,650 ($10,000 − $3,350 standard deduction). State income tax at applicable bracket plus county tax will apply. County tax rates range from 2.25% to 3.2%, so total effective MD state + county rate might be approximately 6–8% on the taxable amount.

Workers' Compensation Maryland workers' compensation law (Md. Code, Labor & Employment Title 9) covers employees broadly. No blanket family/parent exemption from workers' comp. A parent employing a minor child in an FMC should carry workers' comp coverage regardless of the child labor subtitle exemption.

Verified: Maryland workers' compensation (Md. Code, Labor & Employment Title 9) has NO family-employment exclusion for non-agricultural commercial employers.

Md. Code, Labor & Employment § 9-202(a) states:

A review of Md. Labor & Employment Title 9 Subtitle 2 ("Coverage") confirms no family-employment exclusion for a parent employing a minor child in a commercial business. The statute provides that even a minor employed unlawfully (§ 9-202(b)) is a covered employee. No provision analogous to Vermont § 601(14)(D) or Connecticut CGS § 31-275(9)(B)(iii) was located in Maryland WC law. A minor child employed by a parent in a Maryland FMC is a covered employee for workers' compensation, and the employer must carry WC insurance.

VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=9-202&enactments=false&archived=false (official Maryland General Assembly, retrieved June 29, 2026).

State Unemployment Insurance (MD SUTA) Maryland UI law (Md. Labor & Employment Title 8) likely includes a family employment exclusion mirroring federal FUTA for minor children employed by parent sole proprietors. However, the specific text must be verified.

Verified text of Md. Code, Labor & Employment § 8-215 (the Maryland SUTA family-employment exclusion):

Note on citation: The file previously referenced § 8-208. The correct section is § 8-215, which is confirmed by the Maryland Department of Labor Employers' Quick Reference Guide and the official Maryland General Assembly statutory text. Section 8-208 covers church/religious organization exemptions and does not address family employment.

Key points: (1) Maryland excludes from covered employment (SUTA) services by a child under age 21 for a parent. (2) The Maryland DLT Quick Reference Guide confirms: for sole proprietors, children under 21 are excluded; for LLCs taxed as disregarded entities, the same logic should apply but confirm with Maryland DUI; for S-corps or C-corps, no family exclusion applies.

VERIFY: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8-215&enactments=false&archived=false (official Maryland General Assembly, retrieved June 29, 2026); also https://labor.maryland.gov/employment/empguide/empguide.pdf (Maryland DOL Employers' Quick Reference Guide).

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Parent-owned sole proprietorship or SMLLC (disregarded entity). The § 3-203 exemption refers to a business "a parent of the minor... owns or operates" ... a disregarded SMLLC should qualify. Avoid S-corp or multi-member LLC for FICA/FUTA/SUTA family exemption preservation.

1. Age-appropriate role mapping:
2. Under 14: qualifying nonhazardous work in parent-owned FMC outside school hours is exempt from MD subtitle; FLSA still applies
3. 14–15: social media, photography, content creation, light admin ... outside school hours, nonmanufacturing; § 3-203 exemption applies; no permit required
4. 16–17: bookkeeping, client communications, expanded hours; same exemption applies

1. Permit/certificate actions: NOT required when § 3-203 exemption is satisfied. Document the qualifying conditions (outside school hours, nonmanufacturing, nonhazardous). If any uncertainty about whether a specific task qualifies as hazardous, obtain a work permit.

1. Payroll & documentation: Run genuine payroll; document specific tasks, hours, and compensation. MD state + county income tax applies on earnings above $3,350 standard deduction. Factor in the combined rate (approximately 6–9% total) when modeling net income-shifting benefit.

1. State-specific filings / insurance: File MD personal income tax return (Form 502 or 505) for minor if income exceeds filing threshold. Carry workers' comp. Confirm SUTA status. Note MD FAMLI program (launching 2028) ... plan for future payroll obligation.

1. Red flags / "do not do this" list:
2. Do not use the § 3-203 exemption for manufacturing work ... manufacturing is categorically excluded from the exemption
3. Do not allow work during school hours and call it "exempt" ... the exemption explicitly requires outside school hours
4. Do not assume workers' comp or UI exemptions flow automatically from the child labor exemption
5. Do not overlook county income tax on the child's earnings ... combined MD state + county can reach 9% at upper brackets

8. Sources (every URL used)

• [STATUTE] Md. Labor & Employment § 3-202: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-202&enactments=false&archived=false
• [STATUTE] Md. Labor & Employment § 3-203 (parent-owned business exemption): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-203&enactments=false&archived=false
• [STATUTE] Md. Labor & Employment § 3-205 (work permit requirement): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-205&enactments=false&archived=false
• [STATUTE] Md. Labor & Employment § 3-206 (work permit application): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-206&enactments=false&archived=false
• [STATUTE] Md. Labor & Employment § 3-211 (hours under 16): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-211&enactments=false&archived=false
• [STATUTE] Md. Labor & Employment § 3-213 (prohibited occupations): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-213&enactments=false&archived=false
• [STATUTE] Md. Tax-General § 10-217 (MD standard deduction): https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=gtg&section=10-217
• [AGENCY GUIDANCE] MD Comptroller 2025 tax alert: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/alerts/tax-alert-changes-to-standard-and-itemized-deductions-and-to-state-and-local-income-tax-rates-from-the-2025-legislative-session.pdf

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Under-16 prohibition from factory/manufacturing:

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section60

Hours of employment for minors under 16:

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section65

Employment permit -- who may issue:

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section87

Employment permit requirement and procedure:

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section86

Non-applicability of §§ 60-83:

Note: This is the only statutory non-applicability provision. There is no broad family/parent exemption analogous to Maine § 771 or NH RSA 276-A:4(II)(a).

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section85

Co-operative work-study permit exception (16-17 only):

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section95A

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14: Essentially prohibited in all compensated work outside school lunch programs, limited hospital volunteering, or performing arts with AG consent. No broad parent-employer exception in Massachusetts statute (unlike Maine, NH, or Vermont).

Verified: Massachusetts has NO parent-employer exemption for under-14 employment in a commercial business.

MGL c. 149, § 60 prohibits employment of any child under 16 in manufacturing, mechanical, and mercantile establishments (among others) with no parent-employer exception. The only agriculture-related family exception in Chapter 149 is at § 56, which permits a minor under 14 to work on a farm if "related by blood or marriage to the owner or operator." No analogous provision for commercial/non-farm businesses exists in MGL c. 149. Employment of a child under 14 in a Massachusetts FMC (non-agricultural commercial business) is effectively prohibited regardless of the parent-employer relationship.

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section60 and https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section56 (official Massachusetts Legislature website, retrieved June 29, 2026).

Ages 14-15 (MGL c. 149, §§ 60, 65):

Note: Federal FLSA is stricter for 14-15 year olds in covered establishments (3 hrs/school day, 18 hrs/school week, 40 hrs non-school week). FLSA controls where it is stricter.

Ages 16-17 (MGL c. 149, §§ 56, 62, 67): Hours and restrictions vary by industry. Minors under 18 in manufacturing may not work more than 9 hours/day or 48 hrs/week (§ 56, § 62). Hazardous occupation restrictions apply under § 63 and federal HOs. No work in dangerous/injurious occupations as determined by the Attorney General.

Hazardous occupations (MGL c. 149, § 63): The Massachusetts Attorney General has authority to declare specific employments dangerous or injurious for minors. Federal HO 1-17 list applies. Minors under 16 additionally prohibited from: factories, manufacturing establishments, and the list under § 60.

4. Work Permit Step-by-Step (logistics)

Massachusetts employment permit system under MGL c. 149, §§ 86-89.

Step-by-step procedure:

1. Employer and minor agree on employment. Identify job character, hours per day, employer name/address.
2. Complete pledge or promise form (§ 89). Signed by the prospective employee, parent or guardian, AND the employer (or authorized manager), setting forth: character of specific employment, hours per day, employer information, and employer agreement to comply with Chapter 149.
3. Obtain school record (§ 88). For minors under 16, the school principal fills out and signs a school record showing academic standing, attendance, etc.
4. Obtain physician certificate (§ 87(3)). For minors under 16, a signed certificate from a school or family physician within the previous 12 months confirming the minor is in sound health.
5. Proof of age (§ 87(4)). Birth certificate or duly attested transcript; or baptismal certificate; or passport/immigration record; or school register record (if birth certificate unavailable).
6. Submit all documents to superintendent (or authorized designee) (§ 87). The superintendent reviews, approves, and files the papers. The superintendent then issues the employment permit.
7. Employer keeps permit on file (§ 86). Accessible to supervisors of attendance, Department of Education agents, and Attorney General agents.
8. Return permit on termination (§ 86). Within 2 days of termination, return to issuing superintendent's office.

Parent-owned-business -- no express exemption: Massachusetts provides no express exemption from the employment permit requirement for parent-owned businesses. A parent employing their own minor child in an LLC must obtain an employment permit through the normal process. Practical note: The child's school superintendent issues the permit -- the permit cannot be issued by the parent if the parent is also the superintendent or authorized person (§ 87 conflict-of-interest rule). This is an important logistical consideration.

5. Relevant Case Law / Administrative Guidance

Double compensation for illegally-employed minors: MGL c. 152, § 28 provides that a minor employed in violation of Massachusetts child labor statutes (MGL c. 149, §§ 60-64 and § 104) is entitled to double workers' compensation if injured. This creates a significant risk for any employer (including a parent-employer) who fails to comply with child labor requirements.

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter152 (see § 28)

No directly on-point Massachusetts AG opinion or case law on parent-employer FMC income-shifting with minor children was located as of June 2026. Federal authority controls.

6. FMC / Income-Shifting Interaction (state-specific notes)

Entity structure note: Massachusetts does not have a broad parent-employer exemption from child labor laws. A parent-owned SMLLC employing the owner's minor child must obtain employment permits and comply with all Chapter 149 restrictions. The employment permit requirement is a notable compliance burden compared to Maine, NH, and Vermont.

Massachusetts income tax -- CRITICAL: Massachusetts has a flat 5% income tax on most income (MGL c. 62, § 4). Massachusetts does not have a standard deduction. Instead, it uses personal exemptions:

• Single: $4,400 personal exemption
• Head of household: $6,800 personal exemption
• Joint: $8,800 personal exemption

Massachusetts starts its taxable income calculation from Massachusetts AGI (which generally tracks federal AGI for wage/salary income). Because there is no Massachusetts standard deduction, a minor child earning wages through an FMC cannot shelter those wages with a standard deduction at the state level. The child's Massachusetts taxable income is wages minus the personal exemption ($4,400 for a single filer). Even a child earning relatively modest wages will owe Massachusetts income tax at 5%.

Example: A minor child earning $15,000 in wages would have Massachusetts taxable income of approximately $10,600 (after $4,400 personal exemption) and owe approximately $530 in Massachusetts income tax.

VERIFY (MA income tax, no standard deduction): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section3 VERIFY (MA flat 5% rate, personal exemptions): https://www.tax-brackets.org/massachusettstaxtable

Workers' compensation (MGL c. 152): Massachusetts workers' compensation is mandatory for all employers with employees. A minor child employed in a parent-owned LLC is an "employee" covered by MGL c. 152. There is no family-member exclusion in Massachusetts workers' compensation analogous to Vermont § 601(14)(D) or Connecticut § 31-275(9)(B)(iii).

The double compensation rule (§ 28) reinforces the importance of strict compliance: if the child is employed in violation of child labor statutes and is injured, the employer owes double compensation.

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter152

Unemployment insurance (SUTA, MGL c. 151A): Massachusetts Employment Security Law excludes from "employment" service performed by a child under 18 in the employ of the child's parent who is a sole proprietor, and service performed by individuals in the employ of their son, daughter, or spouse. These exclusions do not apply if the employer is a corporation. Whether a parent-owned SMLLC qualifies for the family exclusion depends on whether it is treated as a sole proprietorship for Massachusetts SUTA purposes.

Verified text of MGL c. 151A, § 6(d) (the Massachusetts SUTA family-employment exclusion):

Key points: (1) Massachusetts excludes from "employment" (and therefore SUTA) service by a child under 18 in the employ of the child's father or mother. (2) The text says "father or mother" ... does not specify entity type. However, the FUTA conditionality applies: this exclusion is effective only if it also qualifies as excluded under FUTA. For an SMLLC disregarded entity, the parent is the "employer" for FUTA purposes, and FUTA § 3306(c)(5) applies. For an S-corp or C-corp, this exclusion does not apply. Confirm treatment of SMLLC disregarded entity with Massachusetts DUA before relying on this exclusion.

VERIFY: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151A/Section6 (official Massachusetts Legislature website, retrieved June 29, 2026).

7. State Implementation Playbook

1. Entity & ownership setup: Parent-owned SMLLC (disregarded entity). Recognize that Massachusetts does not provide a parent-employer exemption from child labor permits or occupational restrictions. Build compliance processes accordingly.

1. Age-appropriate role mapping:
2. Under 14: Employment of a child under 14 in Massachusetts is effectively prohibited in all commercial settings under § 60. Do not employ children under 14 in the FMC in Massachusetts.
3. 14-15: Clerical, administrative, creative/content tasks in an office or home-based setting. Avoid any manufacturing, mechanical, or construction work. Obtain employment permit before work begins.
4. 16-17: Most non-hazardous roles. Bookkeeping, social media management, content creation, research, customer service.

1. Permit/certificate actions:
2. For all minors 14 and older: Obtain employment permit from superintendent of schools before work begins.
3. Gather: pledge/promise form (signed by employer, employee, parent), school record (under-16), physician certificate (under-16), proof of age.
4. Keep permit on file at the workplace.
5. Return permit within 2 days of employment termination.
6. No parent-employer exemption -- follow full permit process.

1. Payroll & documentation actions:
2. W-2 payroll is mandatory.
3. Pay Massachusetts minimum wage (currently $15/hr) or higher for actual hours worked.
4. Maintain time records.
5. Massachusetts income tax withholding required from day one.
6. Child files Massachusetts Form 1 if income exceeds filing threshold.
7. Child's Massachusetts taxable income = wages minus $4,400 personal exemption; no standard deduction available.

1. State-specific filings / insurance:
2. Workers' compensation mandatory; no family exclusion. Carry WC insurance from the first employee hired.
3. SUTA: Confirm whether parent-owned SMLLC qualifies for family exclusion with Massachusetts DUA.
4. Note double compensation exposure under MGL c. 152, § 28 for any child labor violation.

1. Red flags and "do not do this" list:
2. Do NOT employ a child under 14 in Massachusetts's FMC without thorough legal review -- Massachusetts has no broad parent-employer exception for under-14 employment.
3. Do NOT proceed without an employment permit for any minor 14 and older.
4. Do NOT employ the child in factory, manufacturing, or mechanical work (§ 60 absolute prohibition for under-16).
5. Do NOT assume Massachusetts has a standard deduction -- it does not. The child will owe Massachusetts income tax at 5% on wages above $4,400.
6. Do NOT convert the FMC to an S-corp or C-corp -- this ends FICA/FUTA exemptions.
7. Do NOT employ the child in any HO 1-17 hazardous occupation.

8. Sources

• [STATUTE] MGL c. 149, § 60 (Under-16 restrictions): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section60
• [STATUTE] MGL c. 149, § 65 (Hours for under-16): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section65
• [STATUTE] MGL c. 149, § 85 (Non-applicability): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section85
• [STATUTE] MGL c. 149, § 86 (Employment permit requirement): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section86
• [STATUTE] MGL c. 149, § 87 (Employment permit issuance procedure): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section87
• [STATUTE] MGL c. 149, § 95A (Co-op work-study exception for 16-17): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section95A
• [STATUTE] MGL c. 62, § 3 (Income tax deductions/exemptions, no standard deduction): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section3
• [STATUTE] MGL c. 152 (Workers' compensation, double compensation for minor): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter152
• [SECONDARY] MA tax brackets and personal exemptions: https://www.tax-brackets.org/massachusettstaxtable
• [SECONDARY] ALFA International Massachusetts WC compendium: https://www.alfainternational.com/wp-content/uploads/2025-Massachusetts-1.pdf

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Michigan Youth Employment Standards Act, Act 90 of 1978 (MCL 409.101 et seq.) Official URL: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-act-90-of-1978

MCL 409.104(6) ... Work Permit Exemption for Parent/Guardian Employment

Citation: MCL 409.104(6)–(7)

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-104

MCL 409.104(1)–(5) ... General Work Permit Requirement

Citation: MCL 409.104

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-104

MCL 409.103 ... Minimum Age and Prohibited Occupations

Section heading (full text not rendered by official site's extract engine; section title confirms content):

Michigan's general minimum working age is 14 under the YESA. Under-14 employment requires a permit for specific occupations. The Act prohibits employment in occupations declared hazardous.

Citation: MCL 409.103

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-103

NOTE: Full statutory text of MCL 409.103 was not rendered verbatim by the official website's excerpt engine during research. The section heading is confirmed; the detailed prohibited-occupation list is set by administrative rule. Practitioners must retrieve and read the full text at the VERIFY URL.

MCL 409.110 ... Hours for Minors Under 16

Section heading confirmed:

Michigan hours for under-16 during school: max 3 hrs/school day, 18 hrs/school week; no work before 7 a.m. or after 9 p.m. (aligned with federal). Full verbatim text not rendered by official site excerpt; practitioners must read at the VERIFY URL.

Citation: MCL 409.110

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-110

Citation: MCL 409.110 (Sec. 10 ... pre-March 31, 2026 text)

Official URL: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-110

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-110

NOTE: Effective March 31, 2026, Michigan YESA amended 14–15 year-old limits to 3 hrs/school day, 18 hrs/school week, 7am–7pm school season, 7am–9pm summer. Confirm current version before relying on this text.

MCL 409.111 ... Hours for Minors 16 and Older

Citation: MCL 409.111

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-111

Citation: MCL 409.111 (Sec. 11)

Official URL: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-111

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-111

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14: Under the YESA, general employment of under-14 minors requires a permit for the specific occupations authorized. In a parent-owned business: the work permit requirement is waived by MCL 409.104(6), but the minor remains subject to all other Act requirements, including any minimum age restrictions embedded in MCL 409.103 and administrative rules.

Ages 14–15: Based on federal standards incorporated by Michigan:

• School days: max 3 hrs/day; no work during school hours; 7 a.m.–9 p.m. time window
• School weeks: max 18 hrs
• Non-school days: max 8 hrs/day; max 40 hrs/non-school week

Ages 16–17: MCL 409.111 governs. Michigan does not impose a weekly hour cap on 16–17 year olds equivalent to federal restrictions. Time-of-day restrictions apply on school nights. Full details: VERIFY at official URL.

Hazardous occupations: Michigan adopts and enforces hazardous occupation orders through MCL 409.103 and administrative rule. The FLSA hazardous occupation orders are incorporated by reference in substance.

4. Work Permit Step-by-Step (logistics)

Standard process (non-parent employer):

1. Employer provides minor with a written statement of intention to employ (employer letterhead; job duties, hours, wages).
2. Minor and parent/guardian complete an application.
3. Application submitted to school district's designated issuing officer.
4. Issuing officer verifies age documents (birth certificate preferred) and approves permit.
5. Permit (color-coded by age band) is issued and filed with the employer.
6. Permit is returned to the issuing officer when employment ends.

Parent-employer / family-business scenario: MCL 409.104(6) states the work permit section "does not apply to a minor employed by the minor's parent, grandparent, or legal guardian, or to a minor employed in a business owned and operated by the minor's parent, grandparent, or legal guardian." No permit is required. However, MCL 409.104(7) preserves all other Act requirements (hours limits, hazardous occupation bans, recordkeeping). Maintain internal documentation: written role description, pay records, and time logs.

VERIFY: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-104

5. Relevant Case Law / Administrative Guidance

No directly on-point Michigan case law or AG opinion specifically addressing an FMC arrangement or income-shifting through minor child employment was located as of June 2026. The MCL 409.104(6) language is clear as to the permit exemption scope; federal authority controls for FLSA interaction.

Michigan's Wage and Hour Division (within the Department of Labor and Economic Opportunity) is responsible for YESA enforcement.

6. FMC / Income-Shifting Interaction (state-specific notes)

Entity structure: MCL 409.104(6) refers to "a business owned and operated by the minor's parent, grandparent, or legal guardian." A parent-owned SMLLC disregarded for tax purposes qualifies. An S-corp or multi-member LLC with non-parent members would not fit the "owned and operated by the minor's parent" standard for the permit exemption; moreover, the FICA exemption is lost at the federal level in those structures.

State Income Tax: Michigan imposes a flat income tax of 4.25% on adjusted gross income (Michigan Constitution Art. IX, §7; MCL 206.51). Michigan does NOT have a standard deduction in the traditional sense comparable to the federal standard deduction. Michigan uses a personal exemption system. The "standard deduction" offered in Michigan applies only to retirement/pension income for certain birth-year cohorts (not relevant for a working child). A working dependent child will owe Michigan income tax on earnings above the Michigan personal exemption amount. Michigan's conformity to the IRC was decoupled from new federal provisions effective December 31, 2024.

Child's Michigan income tax result: The child's Michigan taxable income = Michigan AGI minus Michigan personal exemptions. Michigan's personal exemption is $5,800 per filer for 2026. Earned wages above that are taxed at 4.25%. This is significantly less favorable than the federal result (where the child shelters up to $16,100 with the federal standard deduction in 2026). The income-shifting benefit is reduced but not eliminated.

VERIFY (Michigan income tax): https://www.michigan.gov/taxes/iit/new-developments/new-developments-for-tax-year-2024 VERIFY (Michigan IRC decoupling): https://www.bdo.com/insights/tax/michigan-budget-bills-make-sweeping-tax-changes

Workers' Compensation: Michigan workers' comp (WDCA, MCL 418.101 et seq.) covers employees, including minors. Section 161(2) of the WDCA provides that certain family members of an employer may be excluded from coverage. The specific family member exclusion language in MCL 418.161(2) should be reviewed at source.

PRACTITIONER TO CONFIRM: Exact verbatim text of MCL 418.161(2) family member exclusion from Michigan workers' compensation ... WDCA FAQ confirms "Section 161(2) of the Act provides that certain family members of an employer may be excluded from the Act" but no verbatim statutory text was retrievable from primary source ... https://www.michigan.gov/leo/bureaus-agencies/wdca/employers-and-business-owners/employer-frequently-asked-questions

VERIFY: https://www.michigan.gov/leo/bureaus-agencies/wdca/employers-and-business-owners/employer-frequently-asked-questions

Unemployment Insurance (SUTA): Michigan Employment Security Act (MCL 421.1 et seq.). The parallel to the federal FUTA family exclusion exists: employment of a child under 18 in a parent's sole proprietorship, or a child under 21 in a parent's sole proprietorship (matching federal FUTA timing), is excluded from covered "employment." Employment through a corporation or LLC with multiple owners is not excluded.

Citation: MCL 421.43(g) (Michigan Employment Security Act, Section 43(g))

Official URL: https://www.michigan.gov/-/media/Project/Websites/leo/Folder5/Payment_of_Benefits_to_Unemployed_Workers_Who_Worked_for_Family_Member_or_Family_Corporati.pdf

VERIFY: https://www.michigan.gov/-/media/Project/Websites/leo/Folder5/Payment_of_Benefits_to_Unemployed_Workers_Who_Worked_for_Family_Member_or_Family_Corporati.pdf

Note: This is a plain-language summary from an official Michigan.gov publication; practitioners should confirm exact statutory text at https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-421-43

7. State Implementation Playbook

1. Entity & ownership setup: Parent-owned SMLLC or sole proprietorship. The MCL 409.104(6) "owned and operated by the minor's parent" language is clearest for a single-parent-owned entity. Avoid S-corp or corporate structures to preserve both the FICA exemption and the permit exemption.

1. Age-appropriate role mapping:
2. Under 14: likeness/modeling for business marketing, simple filing, content creation under parent supervision (non-hazardous only; MCL 409.104(7) preserves hazardous occupation bans)
3. 14–15: admin, social media scheduling, data entry, customer service support
4. 16–17: bookkeeping, expanded marketing, client research, copywriting

1. Permit/certificate actions: No work permit required under MCL 409.104(6). Maintain a written description of role, tasks, hours, and wage rate in the business file.

1. Payroll & documentation: Issue W-2. Withhold federal income tax. No FICA if sole prop / parental partnership. Withhold Michigan state income tax at 4.25% on earnings above Michigan personal exemption.

1. State-specific filings / insurance: Verify workers' comp coverage requirement (MCL 418.161 family exclusion should be reviewed). Verify Michigan SUTA applicability.

1. Red flags / do not do this:
2. Do not employ the minor in hazardous occupations ... MCL 409.104(7) preserves those restrictions even without a permit
3. Do not convert the business to an S-corp or add non-parent members/partners without understanding the permit and FICA consequence
4. Do not assume Michigan income tax mirrors the federal result ... the state personal exemption is far smaller than the federal standard deduction

8. Sources

• [STATUTE] Michigan Youth Employment Standards Act (Act 90 of 1978), MCL Chapter 409: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-act-90-of-1978
• [STATUTE] MCL 409.103 ... Minimum age and prohibited occupations: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-103
• [STATUTE] MCL 409.104 ... Work permit exemption for parent/guardian employment: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-104
• [STATUTE] MCL 409.110 ... Hours for minors under 16: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-110
• [STATUTE] MCL 409.111 ... Hours for minors 16+: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-409-111
• [AGENCY GUIDANCE] Michigan WDCA employer FAQ (workers' comp family exclusion): https://www.michigan.gov/leo/bureaus-agencies/wdca/employers-and-business-owners/employer-frequently-asked-questions
• [SECONDARY] Michigan income tax 2024 new developments: https://www.michigan.gov/taxes/iit/new-developments/new-developments-for-tax-year-2024
• [SECONDARY] Michigan IRC decoupling analysis: https://www.bdo.com/insights/tax/michigan-budget-bills-make-sweeping-tax-changes

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Minnesota Statutes Chapter 181A ... Child Labor Official URL: https://www.revisor.mn.gov/statutes/cite/181A

Minn. Stat. §181A.07, subd. 4 ... Parent-Employer Exemption (VERBATIM)

Citation: Minn. Stat. §181A.07, subd. 4

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.07

Minn. Stat. §181A.04, subd. 1 ... Minimum Age

Citation: Minn. Stat. §181A.04, subd. 1

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.04

Minn. Stat. §181A.04, subd. 2–3 ... Hours Restrictions

Citation: Minn. Stat. §181A.04, subd. 2–3

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.04

Minn. Stat. §181A.04 ... High School Student Night Restriction

Citation: Minn. Stat. §181A.04 (high school student night restriction)

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.04

Note: The night restriction has an express exception in subd. (1) that cites "section 181A.07, subdivisions 1, 2, 3, and 4" ... subd. 4 is the parent-employer exemption. Thus, even the high school night restriction is waived for a minor employed by their parent.

Minn. Stat. §181A.05 ... Employment Certificates

Citation: Minn. Stat. §181A.05

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.05

Note: §181A.05 applies only to work "on school days during school hours." For work outside school hours, no employment certificate is required under Minnesota law. And under §181A.07, subd. 4, a parent-employed minor is "exempt from all provisions of sections 181A.01 to 181A.12," including §181A.05.

Minn. Stat. §181A.07 ... Additional Exemptions

And:

And:

Citation: Minn. Stat. §181A.07 (multiple subdivisions)

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.07

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14: Minn. Stat. §181A.04, subd. 1 prohibits employment of minors under 14 except as authorized by §181A.07. The parent-employer exemption in §181A.07, subd. 4 ("employed by a parent shall be exempt from all provisions of sections 181A.01 to 181A.12") is one such authorization. A minor of any age employed by a parent is fully exempt from the Chapter 181A framework.

Ages 14–15 (without parent-employer exemption):

• School hours: prohibited unless employment certificate obtained
• Before 7 a.m. or after 9 p.m.: prohibited
• More than 40 hrs/week or more than 8 hrs/24-hour period: prohibited
• With parent-employer exemption (§181A.07, subd. 4): ALL of these restrictions are waived

High school students (age-neutral rule):

• May not work after 11 p.m. on an evening before a school day or before 5 a.m. on a school day, unless (a) parent employed (§181A.07, subd. 4) or (b) parent provides written note (extends to 11:30 p.m./4:30 a.m.)

Hazardous occupations: Minn. Stat. §181A.04, subd. 5: "No minor under the age of 18 shall be permitted to work in any occupation which the commissioner shall find to be particularly hazardous for the employment of children under 18 years of age or detrimental to their well-being." Hazardous occupation rules apply to all minors under 18. The parent-employer exemption is from "all provisions of sections 181A.01 to 181A.12" ... §181A.04, subd. 5 (hazardous) is within 181A.01–181A.12, which means the parent exemption technically covers hazardous occupations under state law.

IMPORTANT CAVEAT: Even if the Minnesota state hazardous occupation rules are technically waived by §181A.07, subd. 4, the federal FLSA hazardous occupation orders (29 CFR Parts 570–570.68) remain binding federal law. The FLSA parental exemption (29 CFR 570.126) does not extend to mining, manufacturing, or declared hazardous occupations. Federal law controls where stricter.

4. Work Permit Step-by-Step (logistics)

Standard certificate process (for work on school days during school hours ... non-parent employer):

1. Minor 14 or 15 who wishes to work during school hours must obtain an employment certificate.
2. Application submitted to school district superintendent or designated agent.
3. Required: signed statement from prospective employer; parent/guardian consent; issuing officer's determination that minor is physically capable and employment is in the minor's best interest.
4. Certificate specifies: minor's name, address, date of birth, employer name and address, kind of work, hours of exemption; signed by parent/guardian and minor.
5. On termination, employer returns certificate to issuing officer with date of termination.
6. Issuing officer may cancel the certificate if not in the minor's best interest.

Parent-employer / family-business scenario: Minn. Stat. §181A.07, subd. 4 provides a complete exemption: a minor "employed by a parent shall be exempt from all provisions of sections 181A.01 to 181A.12." This includes §181A.05 (employment certificates). No certificate is required when the employer is the minor's parent.

The exemption is stated in terms of employment "by a parent" ... an SMLLC treated as a disregarded entity owned by the parent qualifies. A corporate entity or a partnership with non-parent members may not satisfy "employed by a parent" for purposes of the exemption.

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.05

VERIFY: https://www.revisor.mn.gov/statutes/cite/181A.07

5. Relevant Case Law / Administrative Guidance

No directly on-point Minnesota case law or Attorney General opinion on the parent-employed minor FMC income-shifting structure was located as of June 2026.

Minnesota Department of Labor and Industry (DLI) enforces Chapter 181A. No published formal guidance on the FMC structure for income-shifting was located.

For work outside school hours, no employment certificate is required (Minn. Stat. §181A.05 only applies to work "on school days during school hours"). The parent-employer exemption removes the minor from the statute entirely.

6. FMC / Income-Shifting Interaction (state-specific notes)

Minnesota is the most favorable of the six Midwest states for FMC income-shifting, for two reasons:

1. The §181A.07, subd. 4 parent-employer exemption is the broadest in the group ... it exempts the minor from ALL provisions of Chapter 181A.
2. Minnesota's inflation-indexed standard deduction ($15,300 single for 2026) provides the child with among the most state-level tax shelter among the six states.

Entity structure: "Employed by a parent" ... parent-owned SMLLC (disregarded entity) qualifies as the parent employing the child. S-corp or corporate FMC loses both the FICA exemption (federal) and the "employed by a parent" characterization for state exemption purposes.

State Income Tax: Minnesota imposes a progressive income tax (Minn. Stat. Ch. 290). Rates: 5.35% (up to $33,310 single); 6.80%, 7.85%, 9.85% (over $203,151 single). Minnesota's standard deduction amounts were tied to the federal amounts for tax years 2019–2025; beginning with tax year 2026 Minnesota indexes its own standard deduction. For 2026: $15,300 (single); $30,600 (married filing jointly). A dependent child can claim up to $15,300 as a single filer standard deduction, minus the limitation that for a dependent, the standard deduction is limited to the greater of $1,350 or (earned income + $450), up to the applicable maximum.

In practice: a child with $10,000 in earned income can claim Minnesota standard deduction of $10,450 ($10,000 + $450), sheltering most of that income. Minnesota income tax owed on modest wages is minimal.

VERIFY (Minnesota 2026 standard deduction): https://www.revenue.state.mn.us/press-release/2025-12-16/minnesota-income-tax-brackets-standard-deduction-and-dependent-exemption

Child's Minnesota income tax result: For the income-shifting strategy, Minnesota is the most favorable state: the child can shelter most of their earned income from both federal (federal standard deduction $16,100) and Minnesota (2026 standard deduction $15,300 single) income tax.

Workers' Compensation: Minnesota workers' comp (Minn. Stat. Ch. 176) covers employees. The family member exclusion for workers' comp in Minnesota is limited: spouses and parents employed by the business owner may be excluded under certain conditions, but child employees of a parent are generally covered as employees.

The Minnesota workers' comp family exclusion applies ONLY to farmers. Per Minn. Stat. § 176.011, subd. 11a: "farm laborer does not include any spouse, parent or child, regardless of age, of a farmer employed by the farmer." There is NO general family exclusion for non-farm employers. A child employed by a parent in a non-farm business IS a covered employee under Minnesota workers' comp.

Citation: Minn. Stat. § 176.011, subd. 11a (farm laborer definition ... family exclusion limited to agriculture)

Official URL: https://www.revisor.mn.gov/statutes/cite/176.011

VERIFY: https://www.revisor.mn.gov/statutes/cite/176.011

Unemployment Insurance (SUTA): Minn. Stat. §268.035: employment of a child under 18 in a parent's sole proprietorship is excluded from covered "employment." An S-corp or corporate entity does not qualify for the exclusion.

Citation: Minn. Stat. § 268.035, subd. 20(18) ... NOTE: age threshold is 18, not 21

Official URL: https://www.revisor.mn.gov/statutes/cite/268.035

VERIFY: https://www.revisor.mn.gov/statutes/cite/268.035

7. State Implementation Playbook

1. Entity & ownership setup: Parent-owned SMLLC (disregarded entity) or sole proprietorship. The "employed by a parent" language in §181A.07, subd. 4 is cleanest with a disregarded entity. Avoid S-corp or non-parent LLC ownership.

1. Age-appropriate role mapping (Minnesota is the most permissive of the 6 states):
2. Any age: under direct parental employment, all Chapter 181A restrictions are waived (subject to FLSA federal floor ... no mining, manufacturing, or declared hazardous work)
3. Practical tasks: social media content, photography, brand ambassador, bookkeeping data entry, filing, light admin
4. 14+: expanded roles; marketing support, research, video production, event assistance
5. 16+: full range of admin and client-facing roles

1. Permit/certificate actions: No employment certificate required when parent is employer (§181A.07, subd. 4). Maintain internal role documentation regardless.

1. Payroll & documentation: Issue W-2. Withhold federal income tax. No FICA/FUTA if sole prop or parental partnership. Withhold Minnesota income tax at applicable progressive rates; child's Minnesota standard deduction ($15,300 single for 2026) shelters most modest earned wages.

1. State-specific filings / insurance: Minnesota workers' comp is REQUIRED for a child employed in a non-farm parent-owned FMC ... no family exclusion under Minn. Stat. § 176.011 for non-farm employers. Minnesota SUTA: child under 18 employed by parent in sole prop/disregarded LLC is excluded per Minn. Stat. § 268.035, subd. 20(18); does not apply to corporations. File Minnesota withholding returns.

1. Red flags / do not do this:
2. Do not rely on the §181A.07 state exemption to override federal FLSA hazardous occupation orders ... federal law controls where stricter
3. Do not employ the minor through a corporate entity and claim the "employed by a parent" exemption
4. Do not fail to confirm the workers' comp obligation ... Minnesota coverage for minor child employees is the default rule
5. Do not miss the opportunity: Minnesota's mirrored standard deduction makes this the most financially efficient income-shifting state of the six; model the numbers carefully

8. Sources

• [STATUTE] Minn. Stat. §181A.04 ... Minimum age and maximum hours: https://www.revisor.mn.gov/statutes/cite/181A.04
• [STATUTE] Minn. Stat. §181A.05 ... Employment certificates: https://www.revisor.mn.gov/statutes/cite/181A.05
• [STATUTE] Minn. Stat. §181A.07 ... Exemptions (parent-employer exemption at subd. 4): https://www.revisor.mn.gov/statutes/cite/181A.07
• [STATUTE] Minn. Stat. §181A ... Chapter 181A overview: https://www.revisor.mn.gov/statutes/cite/181A
• [AGENCY GUIDANCE] Minnesota DOR 2024 standard deduction amounts: https://www.revenue.state.mn.us/mndor-pp/19621?type=html
• [AGENCY GUIDANCE] Minnesota DOR volunteer reference chart (dependent standard deduction rules): https://www.revenue.state.mn.us/sites/default/files/2025-01/tax-year-2024-volunteer-reference-chart.pdf
• [SECONDARY] Minnesota standard deduction mirrors federal (2019–2025): https://www.house.mn.gov/hrd/pubs/ss/ssmti.pdf
• [SECONDARY] Minnesota income tax rates: https://smartasset.com/taxes/minnesota-tax-calculator

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Miss. Code Ann. § 71-1-17 ... Under-14 Prohibition in Manufacturing Establishments

Citation: Miss. Code Ann. § 71-1-17

Official URL: https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-17/

VERIFY: https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-17/

Miss. Code Ann. § 71-1-19 ... Child Labor in Accord with School Attendance (Work Permit)

Citation: Miss. Code Ann. § 71-1-19

Official URL: https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-19/

VERIFY: https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-19/

Miss. Code Ann. § 71-1-21 ... Hours of Labor in Manufacturing Establishments for Ages 14-15

Citation: Miss. Code Ann. § 71-1-21

Official URL: https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-21/

VERIFY: https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-21/

Miss. Code Ann. § 71-3-107 ... Workers' Comp Double Benefit for Illegally Employed Minors

Citation: Miss. Code Ann. § 71-3-107

Official URL: https://law.justia.com/codes/mississippi/title-71/chapter-3/general-provisions/section-71-3-107/

VERIFY: https://law.justia.com/codes/mississippi/title-71/chapter-3/general-provisions/section-71-3-107/

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• May not work in mills, canneries, workshops, factories, or manufacturing establishments (Miss. Code § 71-1-17)
• Under FLSA, may not work in non-agricultural employment generally (FLSA § 3(l); 29 CFR § 570.119); FLSA governs for non-manufacturing work in Mississippi

Ages 14-15 (in mills/canneries/factories under state law):

• No more than 8 hours per day; 44 hours per week
• No work between 7 p.m. and 6 a.m. in those establishments
• Must present parental affidavit and school certificate to employer

Ages 14-15 (general non-manufacturing employment, FLSA governs):

• Not before 7:00 a.m. or after 7:00 p.m. (9 p.m. June 1-Labor Day)
• No more than 3 hours/school day; 18 hours/school week; 8 hours/non-school day; 40 hours/non-school week
• No work during school hours

Ages 16-17:

• No state hour restrictions (Mississippi)
• Subject to FLSA's 17 Hazardous Occupation Orders (no manufacturing, mining, explosives, power-driven machinery, meat packing, logging, demolition, excavation, etc. under age 18)
• Must not be required to work during school hours
• No nightwork restriction under Mississippi law for ages 16-17 (FLSA also imposes none)

Source: Miss. Code Ann. §§ 71-1-17 through 71-1-31; FLSA 29 CFR Part 570

VERIFY: https://law.justia.com/codes/mississippi/title-71/chapter-1/

4. Work Permit Step-by-Step (logistics)

Mississippi's work-permit requirement is limited to minors working in mills, canneries, workshops, or factories.

For manufacturing/factory employment (ages 14-15) ... Miss. Code § 71-1-19:

1. The child's parent or guardian prepares an affidavit stating the child's date and place of birth, last school attendance, grade, school name, and teacher's name.
2. The school superintendent or principal of the district where the child resides (or last attended) issues a certificate confirming the same school-attendance information.
3. The child presents both the affidavit and the school certificate to the employer before beginning work.
4. The employer preserves the affidavit and keeps a complete register of all such affidavits for current employees.

For general non-manufacturing employment: Mississippi does not require a state work permit for minors working in offices, retail, food service, or similar settings. Employers must retain proof of age documentation.

Parent-owned-business note: Because an FMC providing management, marketing, or administrative services would typically not constitute a mill, cannery, workshop, factory, or manufacturing establishment, the § 71-1-19 permit requirement would not apply. No explicit parent-employer exemption needs to be invoked; the state restriction simply does not reach non-manufacturing work. FLSA governs the federal floor.

5. Relevant Case Law / Administrative Guidance

No directly on-point Mississippi state case law located as of June 2026 specifically addressing parent-employer FMC income-shifting arrangements. The FLSA parental exemption and federal tax rules control.

Miss. Code Ann. § 71-3-107 provides a notable risk: if a minor is employed in violation of any Mississippi labor law, workers' comp benefits double. This is a strong incentive to ensure compliance even in a parent-employer context.

SHRM guidance notes (confirmed against primary sources): "Mississippi child labor laws do not require teens under 18 years old to obtain an employment certificate (work permit) in order to work in the state" for general non-manufacturing work. Mississippi's primary restriction is the manufacturing-sector statute.

6. FMC / Income-Shifting Interaction (state-specific notes)

State income tax: Mississippi has a state individual income tax that is being phased out over several years. For 2026 Mississippi imposes a flat 4.0% rate on taxable income above the exemption threshold (the graduated brackets have been eliminated as the tax is phased toward repeal). Mississippi's standard deduction is $2,300 for single filers and $4,600 for married filing jointly, which does NOT conform to the federal standard deduction ($16,100 single / $32,200 MFJ for 2026). The personal exemption is $6,000 for single filers.

For a minor child earning wages: the first $6,000 (personal exemption) + $2,300 (standard deduction) = $8,300 is exempt from Mississippi income tax. Above that, the 5% rate applies. The federal standard deduction ($16,100 for single filers in 2026) fully shelters up to that amount federally. The child will owe Mississippi state income tax on wages above $8,300.

Mississippi is on a legislative path to full income tax elimination (targeting 0% by approximately 2029 per 2022 legislation). This makes the state tax interaction less material over time, but currently relevant.

Source: Miss. Dept. of Revenue, https://www.dor.ms.gov/general-information

VERIFY: https://www.dor.ms.gov/general-information

Workers' Compensation (Miss. Code Ann. Title 71, Ch. 3): Mississippi workers' comp covers employers who regularly employ 5 or more employees. Smaller employers (fewer than 5) are not required to carry coverage. An FMC with only the parent and one or two minor children as employees would likely fall below the threshold.

Note the double-compensation penalty under § 71-3-107 for minors employed in violation of Mississippi labor laws. Proper compliance is critical.

VERIFY coverage threshold: https://www.mwcc.ms.gov/ (Mississippi Workers' Compensation Commission)

Unemployment Insurance (Miss. Code Ann. Title 71, Ch. 5):

Citation: Miss. Code Ann. § 71-5-11(I)(15)(d)

Official URL: https://codes.findlaw.com/ms/title-71-labor-and-industry/ms-code-sect-71-5-11/

VERIFY: https://codes.findlaw.com/ms/title-71-labor-and-industry/ms-code-sect-71-5-11/

Note: § 71-5-11 was repealed effective July 1, 2019 and reenacted by SB 2552; FindLaw reflects the reenacted version. Age threshold is 21.

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Use a sole proprietorship or qualifying parent partnership to preserve the federal FICA/FUTA parental exemption. Mississippi's narrow child labor statutes focus on manufacturing, so the primary compliance layer for non-manufacturing FMC work is federal (FLSA + IRC).

1. Age-appropriate role mapping:
2. Under 14: FLSA governs; generally no non-agricultural employment, but FLSA parental exemption allows a parent-owned business to employ their own child. Keep work to administrative, creative, and non-manufacturing tasks.
3. Ages 14-15: Social media, content creation, photography/video, administrative/clerical tasks, client research ... all outside school hours
4. Ages 16-17: Above plus bookkeeping assistance, graphic design, customer correspondence, business operations support

1. Permit/certificate actions: For an FMC providing services (not manufacturing), no Mississippi state work permit is required. Keep proof of age on file (birth certificate photocopy or equivalent). If any work touches a manufacturing, cannery, or factory setting, the § 71-1-19 parental affidavit + school certificate procedure is required.

1. Payroll and documentation actions:
2. Issue W-2 wages; withhold federal income tax; do not withhold FICA if child is under 18 and employer is parent sole prop/partnership
3. Register for Mississippi income tax withholding if wages exceed Mississippi's threshold
4. Keep detailed time records and job description documentation
5. Retain proof of age documentation

1. State-specific filings: Mississippi income tax withholding registration with the Mississippi Department of Revenue. File Mississippi W-2s. The child may need to file a Mississippi return on wages above $8,300 (standard deduction + personal exemption for single filer). Monitor the ongoing income tax phase-out legislation.

1. Red flags and "do not do this" list:
2. Do not place a minor under 14 in any manufacturing/factory environment
3. Do not allow a minor under 16 to work in a manufacturing establishment without the parental affidavit and school certificate on file
4. Beware of Miss. Code § 71-3-107: if the minor is employed in violation of Mississippi law, workers' comp doubles ... ensure all state requirements are met even if minimal
5. Do not rely solely on the FLSA parental exemption; Mississippi's FLSA parallel still requires the employer (even a parent) to keep proof of age and comply with FLSA occupational restrictions

8. Sources (every URL used)

• [STATUTE] Miss. Code Ann. § 71-1-17 (under-14 prohibition in factories): https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-17/
• [STATUTE] Miss. Code Ann. § 71-1-19 (work permit/school attendance requirement): https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-19/
• [STATUTE] Miss. Code Ann. § 71-1-21 (hours of labor in factories): https://law.justia.com/codes/mississippi/title-71/chapter-1/section-71-1-21/
• [STATUTE] Miss. Code Ann. § 71-3-107 (double workers' comp for illegally employed minors): https://law.justia.com/codes/mississippi/title-71/chapter-3/general-provisions/section-71-3-107/
• [AGENCY GUIDANCE] Mississippi Dept. of Revenue, General Information (standard deduction, rates): https://www.dor.ms.gov/general-information
• [SECONDARY] SHRM guide to Mississippi minor employment: https://www.shrm.org/topics-tools/employment-law-compliance/questions-answered-mississippi-employers-hiring-minors
• [SECONDARY] Mississippi Chapter 1 section index (Title 71): https://law.justia.com/codes/mississippi/title-71/chapter-1/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

RSMo § 294.011(1), (7) ... Definitions (key provisions)

Citation: RSMo § 294.011 (effective 8/28/2002)

Official URL: https://revisor.mo.gov/main/OneSection.aspx?section=294.011

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.011

RSMo § 294.021 ... Minors under fourteen not to be employed, exception

Citation: RSMo § 294.021 (effective 8/28/1995)

Official URL: https://revisor.mo.gov/main/OneSection.aspx?section=294.021

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.021

RSMo § 294.024 ... Employment of children, work certificate required

Citation: RSMo § 294.024 (effective 8/28/2002)

Official URL: https://revisor.mo.gov/main/OneSection.aspx?section=294.024

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.024

RSMo § 294.030 ... Hours of work for minors

Citation: RSMo § 294.030 (effective 8/28/2002)

Official URL: https://revisor.mo.gov/main/OneSection.aspx?section=294.030

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.030

RSMo § 294.040 ... Minors under sixteen not to work in certain occupations

Citation: RSMo § 294.040 (effective 8/28/1997)

Official URL: https://revisor.mo.gov/main/OneSection.aspx?section=294.040

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.040

3. Hours / Prohibited Occupations for Minors (by age band)

Note: Because § 294.011(7) defines "employ" to exclude a child working under direct parental control, the hours and occupation restrictions of Chapter 294 technically do not apply when the parent is directly supervising. However, FLSA restrictions still apply for interstate commerce employers, and the prohibition of § 294.021 (no employment under 14) may reach family employment under a more cautious reading. Practice at minimum age 14 is recommended.

Under 14:

• § 294.021: No employment or permitted work at any occupation at any time.
• The § 294.011(7) family definition exception means "direct parental control" work is not "employment" under Chapter 294 ... but this creates definitional ambiguity. Consult Missouri DOL before employing a child under 14 in an FMC.

14–15 (under 16 = "child" under Missouri definition):

• No more than 3 hours/day on school days
• No more than 8 hours on nonschool days
• No more than 6 days or 40 hours/week
• Hours: no earlier than 7:00 a.m.; no later than 7:00 p.m. (Labor Day to June 1) or 9:00 p.m. (June 1 to Labor Day)
• All § 294.040 prohibited occupations apply
• Work certificate required during school term (§ 294.024), unless the family exemption in § 294.011(7) removes this child from the definition of "employed"

16–17:

• Missouri Chapter 294 does not restrict hours for 16–17 year-olds
• FLSA hazardous occupation orders (Hazardous Occupations Orders 1–17) apply for under-18
• No separate Missouri permit requirement found for ages 16–17

4. Work Permit Step-by-Step (logistics)

For a child employed by a non-parent employer during the school term:

1. The child and parent/guardian apply to the superintendent of schools (§ 294.045)
2. The superintendent issues a work certificate if requirements are met (§ 294.051): applicant presents proof of age; school certificate showing enrollment; employer's written statement of job duties
3. Certificate contents (§ 294.054): child's name, age, address; description of employment; date issued; school information
4. The certificate is transmitted to the employer and kept on file (§ 294.060)
5. Upon termination, the employer returns the certificate to the issuing officer or the child

Parent-employer / family exemption from permit: Because RSMo § 294.011(7) defines "employ" as excluding "any child working under the direct control of the child's parent," such a child is not "employed" within the meaning of Chapter 294 and thus § 294.024's work certificate requirement does not apply. No work certificate needs to be obtained for a child working directly under parental supervision in the parent's business.

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.011 (subsection 7)

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.024

VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=294.045

5. Relevant Case Law / Administrative Guidance

Missouri workers' comp ... minors included: RSMo § 287.020 expressly includes minors: "The word 'employee' shall also include all minors who work for an employer, whether or not such minors are employed in violation of law, and all such minors are hereby made of full age for all purposes under, in connection with, or arising out of this chapter." VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=287.020

Missouri workers' comp ... family farm corporation exception (§ 287.090(4)):

This exemption is limited to family farm corporations and does NOT extend to general LLCs or S-corps used as FMCs. VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=287.090

Missouri workers' comp ... sole proprietor and close relatives: Per Missouri DOL guidance: "Sole proprietors and partners are not themselves covered unless they elect to be covered. On the other hand, close family member-employees and members of limited liability companies are presumed to be covered unless they opt out." Close relatives of sole proprietors or partners "may be withdrawn from coverage" but are still counted as employees for mandatory threshold purposes. Source: https://labor.mo.gov/faqs/knowledge-base/who-required-carry-workers-compensation-insurance-coverage VERIFY: https://labor.mo.gov/faqs/knowledge-base/who-required-carry-workers-compensation-insurance-coverage

Missouri workers' comp child labor penalty (§ 287.250(7)): If an employer knowingly employs a minor in violation of Missouri child labor laws and the minor is injured, there is a potential additional 50% penalty on the compensation award. VERIFY: https://revisor.mo.gov/main/OneSection.aspx?section=287.250

No directly on-point Missouri state case law or AG opinion located as of June 29, 2026 specifically addressing the Chapter 294 family employment exemption in an FMC income-shifting context. Federal authority controls for FLSA floor purposes.

6. FMC / Income-Shifting Interaction (state-specific notes)

Missouri income tax: Missouri has a graduated individual income tax. Missouri taxable income is based on Missouri adjusted gross income less the Missouri standard deduction or itemized deduction, personal exemptions, and a deduction for federal income taxes paid (RSMo § 143.111). Missouri maintains its own standard deduction; it does NOT simply adopt the federal standard deduction. Missouri's standard deduction is set at a lower level than the federal standard deduction.

Current Missouri standard deduction: The Missouri standard deduction is referenced in RSMo § 143.141 (itemized vs. standard). Missouri now conforms to the federal standard deduction. Confirmed from Missouri DOR (dor.mo.gov): 2026 amounts = $16,100 (single) / $32,200 (married filing jointly) / $24,150 (head of household), matching the federal 2026 standard deduction.

Citation: RSMo § 143.141 (as amended to conform to federal standard deduction amounts)

Official URL: https://dor.mo.gov/taxation/individual/tax-types/income/year-changes/

VERIFY: https://dor.mo.gov/taxation/individual/tax-types/income/year-changes/

VERIFY RSMo standard deduction current amounts: https://revisor.mo.gov/main/OneSection.aspx?section=143.141

Impact on income-shifting: A child earning wages from a Missouri FMC will reduce their Missouri taxable income by the Missouri standard deduction. Missouri's income tax rates (graduated, with a top rate of 4.7% for 2026) will apply to income above the deduction. Confirm current Missouri standard deduction amount with the Missouri DOR.

Workers' comp (Missouri): Missouri workers' comp covers minors broadly (§ 287.020). For a parent's sole proprietorship, close relatives may be withdrawn from mandatory coverage per § 287.035, but they remain countable employees. An FMC structured as an LLC does not benefit from any family exemption under Missouri workers' comp; coverage is mandatory. An S-corp shareholder owning at least 40% of stock may individually reject coverage by written notice (effective 1/1/2018), but this applies only to that shareholder, not to minor child employees.

Missouri SUTA: Missouri does not have a statutory exclusion from SUTA for minor children employed by a parent in a general business (contrast with Iowa and some other states that exclude children under 18 employed by a parent sole prop). Missouri SUTA applies to wages paid to minor employees of any covered employer. The base rate applies.

VERIFY Missouri SUTA family exemption: https://labor.mo.gov/employers-businesses/unemployment-insurance

7. State Implementation Playbook

1. Entity and ownership setup: Missouri does not provide SUTA family exclusions for non-agricultural businesses. An FMC structured as an LLC will be subject to Missouri SUTA on the child's wages. Workers' comp coverage is mandatory for LLC employees. A sole proprietorship preserves the ability to withdraw close relatives from workers' comp (§ 287.035), but they remain countable employees.

1. Age-appropriate role mapping:
2. Under 14: The § 294.011(7) "direct control of the child's parent" carve-out from the definition of "employ" may permit some family tasks, but § 294.021 still bars "employment" under 14. The safest interpretation is that under-14 children should not be put on formal payroll. Consult counsel.
3. 14–15: Social media content creation, administrative tasks, light bookkeeping, filing. Limit to 3 hours/day on school days, 8 hours on nonschool days. No § 294.040 prohibited occupations.
4. 16–17: Broader administrative, bookkeeping, marketing, research roles. No Missouri hour restrictions; FLSA hazardous occupation orders apply.

1. Permit and certificate actions: For a child working "under the direct control of the child's parent" (§ 294.011(7)), no work certificate is required during the school term because such work does not constitute "employ" under Chapter 294. Document the direct supervision arrangement in writing.

1. Payroll and documentation:
2. Pay at market rate; document with written employment agreement
3. Issue Missouri and federal W-2
4. Missouri income tax withholding applies to wages above threshold
5. Maintain timesheets and work product records

1. State-specific filings/insurance:
2. Missouri SUTA: Wages paid to minor child employees in a business (including an LLC FMC) are subject to Missouri SUTA. File Form MODES-4 quarterly.
3. Workers' comp: Mandatory for LLC employers. Obtain coverage for the child.
4. If sole prop: workers' comp for child is not mandatory but voluntary withdrawal (§ 287.035) must be documented.

1. Red flags / do not do this:
2. Do not rely on § 294.011(7) family exemption for under-14 children in formal payroll arrangements ... the exemption covers informal direct-supervision work, not an employment relationship with wages, timesheets, and W-2s.
3. Do not omit workers' comp coverage for a minor child employed in an LLC FMC.
4. Do not assume Missouri SUTA family exclusions parallel the federal FICA exemption ... they do not.
5. Do not assume the § 294.011(7) exemption means no documentation is needed ... robust records are essential for IRS purposes regardless of Missouri child labor law.

8. Sources

• [STATUTE] RSMo § 294.011 ... https://revisor.mo.gov/main/OneSection.aspx?section=294.011
• [STATUTE] RSMo § 294.021 ... https://revisor.mo.gov/main/OneSection.aspx?section=294.021
• [STATUTE] RSMo § 294.024 ... https://revisor.mo.gov/main/OneSection.aspx?section=294.024
• [STATUTE] RSMo § 294.030 ... https://revisor.mo.gov/main/OneSection.aspx?section=294.030
• [STATUTE] RSMo § 294.040 ... https://revisor.mo.gov/main/OneSection.aspx?section=294.040
• [STATUTE] RSMo § 294.045 ... https://revisor.mo.gov/main/OneSection.aspx?section=294.045
• [STATUTE] RSMo § 287.020 (workers' comp ... minors) ... https://revisor.mo.gov/main/OneSection.aspx?section=287.020
• [STATUTE] RSMo § 287.035 (sole proprietors / partners) ... https://revisor.mo.gov/main/OneSection.aspx?section=287.035
• [STATUTE] RSMo § 287.090 (exempt employers) ... https://revisor.mo.gov/main/OneSection.aspx?section=287.090
• [STATUTE] RSMo § 287.250(7) (minor injury penalty) ... https://revisor.mo.gov/main/OneSection.aspx?section=287.250
• [STATUTE] RSMo § 143.111 (Missouri taxable income) ... https://revisor.mo.gov/main/OneSection.aspx?section=143.111
• [STATUTE] RSMo § 143.141 (itemized deductions) ... https://revisor.mo.gov/main/OneSection.aspx?section=143.141
• [AGENCY GUIDANCE] Missouri DOL ... workers' comp FAQ ... https://labor.mo.gov/faqs/knowledge-base/who-required-carry-workers-compensation-insurance-coverage
• [AGENCY GUIDANCE] Missouri Division of Workers' Compensation ... https://labor.mo.gov/dwc
• [SECONDARY] Missouri child labor chapter index ... https://revisor.mo.gov/main/OneChapter.aspx?chapter=294

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Governing statute: Montana Code Annotated, Title 41, Chapter 2, Part 1 (Child Labor Standards Act of 1993). Official URL base: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/parts_index.html

Short title ... MCA § 41-2-102:

Citation: MCA § 41-2-102

Official URL: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0020/0410-0020-0010-0020.html

VERIFY: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0020/0410-0020-0010-0020.html

Definitions ... MCA § 41-2-103 (selected):

Citation: MCA § 41-2-103

Official URL: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0030/0410-0020-0010-0030.html

VERIFY: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0030/0410-0020-0010-0030.html

EXEMPTIONS ... MCA § 41-2-104 (verbatim, in full):

Citation: MCA § 41-2-104

Official URL: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0040/0410-0020-0010-0040.html

VERIFY: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0040/0410-0020-0010-0040.html

Prohibited employment under 14 ... MCA § 41-2-105:

Citation: MCA § 41-2-105

Official URL: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0050/0410-0020-0010-0050.html

VERIFY: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0050/0410-0020-0010-0050.html

Hours for 14–15 year-olds ... MCA § 41-2-115 (verbatim):

Citation: MCA § 41-2-115

Official URL: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0150/0410-0020-0010-0150.html

VERIFY: https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0150/0410-0020-0010-0150.html

Workers' comp exemption for family members ... MCA § 39-71-401(2)(c):

Citation: MCA § 39-71-401(2)(c)

Official URL: https://law.justia.com/codes/montana/title-39/chapter-71/part-4/section-39-71-401/

VERIFY: https://law.justia.com/codes/montana/title-39/chapter-71/part-4/section-39-71-401/

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• Prohibited from all employment (§ 41-2-105) except: work by a parent or person standing in place of parent (§ 41-2-104(3)), domestic service or agricultural pursuit at parent's home/farm outside school hours (§ 41-2-104(2)), casual unpaid community activity, newspaper distribution, entertainment, legislative work, casual domestic work at a homeowner's private residence outside business context.

Ages 14–15:

• May not work during school hours (Montana DWS guidance confirms § 41-2-108(1)).
• Hours: no more than 3/school day, 18/school week, 8/nonschool day, 40/nonschool week (§ 41-2-115(1)(b)).
• Night restriction: not before 7 a.m. or after 7 p.m. (9 p.m. summer, June 1–Labor Day).
• Prohibited occupations per § 41-2-106: manufacturing; processing; power-driven machinery; warehousing, storage, transportation; construction; certain retail/food service work (boiler rooms, ladder work over 20 feet, power-driven food slicers, freezer/meat cooler work, warehouse work except clerical); certain agricultural hazards.

Ages 16–17:

• No Montana hour limits stated in Part 1 for 16–17-year-olds (beyond FLSA).
• Prohibited: all hazardous occupations in § 41-2-107 unless qualifying as apprentice or student-learner (§ 41-2-110).
• FLSA's 17 federal HOs apply for businesses in interstate commerce.

4. Work Permit Step-by-Step (logistics)

Montana does NOT require a traditional work permit or employment certificate for minors.

The Montana DWS (Employment Relations Division) enforces the Child Labor Standards Act through complaint investigation. No permit issuance process exists.

Parent-owned business / FMC:

• Under § 41-2-104(3), a minor employed by a parent or person standing in place of a parent is entirely exempt from the Child Labor Standards Act. No permit, no filing, no age-related restriction under Montana state law applies.
• Note: FLSA parental exemption (29 U.S.C. § 203(l)) carves out mining, manufacturing, and declared hazardous occupations even for parent employers in interstate commerce. Where FLSA applies, it controls.
• Maintain documentation of the employment relationship, tasks performed, hours, and wages as good practice.

5. Relevant Case Law / Administrative Guidance

Workers' comp family exemption precedent: In 1987, the Montana Supreme Court in Carmichael v. State Compensation Insurance Fund ruled that a prior family-member workers' comp exemption based on household residence violated the Equal Protection Clause. The 1989 legislature (HB 21) corrected this by tying the exemption to IRS-code dependent status rather than household co-residence. This is the basis for the current MCA § 39-71-401(2)(c) exemption.

VERIFY: https://courts.mt.gov/external/leg/1989/house/01-12-hlabemploy.pdf (legislative record of HB 21)

No directly on-point Montana AG opinion or court case located as of June 29, 2026, specifically addressing family management company employment of minor children for income-shifting purposes. Federal authority controls the federal layer.

Montana DWS Child Labor Reference Guide: https://erd.dli.mt.gov/labor-standards/child-labor-law/child-labor-law-reference-guide

6. FMC / Income-Shifting Interaction (state-specific notes)

State income tax: Montana has a state income tax. Effective with the 2024 Montana Tax Simplification Act (Senate Bill 124, effective TY 2024), Montana uses federal taxable income as the starting point for Montana taxable income. Montana no longer has a separate Montana standard deduction; instead, the federal standard deduction (or itemized deductions) flows through to the Montana calculation. This means a child's wages that are offset by the federal standard deduction ($16,100 for single, 2026) will also reduce Montana taxable income by the same amount. Montana's income tax rates for 2026 (single filers) are: 4.7% (taxable income $0–$47,500) and 5.65% (income above $47,500), following the HB 337 (2025) bracket restructure and top-rate reduction effective January 1, 2026.

VERIFY: https://revenue.mt.gov/montana-tax-simplification-resource-hub

Unemployment insurance (SUTA): Verified text of MCA § 39-51-204(1)(b) (the Montana SUTA family-employment exclusion):

Note on citation: The Montana SUTA family exclusion is located at MCA § 39-51-204(1)(b) ("Exclusions from definition of employment"), not at § 39-51-203 (which defines employment generally). Section 39-51-203 describes what IS employment; section 39-51-204 lists what is excluded.

Key points: (1) Montana's exclusion is narrower than most states: it requires the child to be a "dependent member" for whom the employer may claim an IRC § 152 exemption (federal tax dependent). It does not simply cover any child under 21. (2) This exclusion is limited to sole proprietors ... a parent-owned SMLLC taxed as a disregarded entity (treated as a sole proprietorship for federal tax purposes) should qualify. An LLC taxed as a corporation does not qualify. (3) A child who is a full-time student at college and claims their own exemption, or an adult child who is not a tax dependent, would NOT qualify for this exclusion.

VERIFY: https://mca.legmt.gov/bills/mca/title_0390/chapter_0510/part_0020/section_0040/0390-0510-0020-0040.html (official Montana Legislature MCA, retrieved June 29, 2026).

Workers' compensation: MCA § 39-71-401(2)(c) is a meaningful FMC-friendly provision. A minor child who qualifies as a "dependent member of an employer's family for whom an exemption may be claimed by the employer under the federal Internal Revenue Code" is excluded from mandatory workers' comp coverage ... unless the employer elects to cover them.

Key qualification: the child must be a federal tax dependent of the employer. In a typical FMC arrangement where a parent employs their own minor child, the child generally qualifies as the parent's IRC § 152 dependent. This exemption applies to sole proprietorships and qualifying partnerships; corporate structure affects the analysis.

The employer (parent) may voluntarily elect coverage, which may be prudent. Montana State Fund (the primary insurer) should be consulted.

VERIFY: https://law.justia.com/codes/montana/title-39/chapter-71/part-4/section-39-71-401/

7. State Implementation Playbook

1. Entity and ownership setup: A Montana SMLLC taxed as a disregarded entity (sole proprietorship for federal and Montana purposes), owned solely by one parent, is the preferred FMC structure. This preserves FICA/FUTA exemptions (federal) and the MCA § 41-2-104(3) child labor exemption (state). Montana income tax applies at the child's rate after federal-standard-deduction passthrough.

1. Age-appropriate role mapping:
2. Any age under 18 (including under 14): Work for a parent is entirely exempt from the Child Labor Standards Act (§ 41-2-104(3)). For very young children, tasks must be genuinely performed and compensable.
3. Age 14–15: Office work, clerical tasks, social media content, photography, simple bookkeeping, marketing assistance ... standard FMC tasks, during non-school hours.
4. Age 16–17: Broader range; Montana allows student-employees in supervised settings to perform otherwise-restricted work (§ 41-2-110(1)(c)).

1. Permit/certificate actions: No permit required. Maintain a written record of the employment relationship, role description, and hours.

1. Payroll and documentation actions:
2. Run W-2 payroll. No FICA/FUTA for child under 18 in SMLLC FMC (federal).
3. Montana state income tax withholding required on wages exceeding the passthrough standard deduction threshold. Montana follows federal AGI/taxable income base.
4. Contemporaneous records of tasks, hours, dates, and rate of pay.

1. State-specific filings / insurance:
2. Montana income tax: child files a Montana Form 2 if Montana taxable income exceeds applicable threshold.
3. Workers' comp: dependent family members are exempt under § 39-71-401(2)(c); voluntary election available. Confirm dependent status under IRC § 152.
4. Montana UI SUTA: child employed by sole proprietor parent is excluded under MCA § 39-51-204(1)(b) if child qualifies as the parent's IRC § 152 dependent. SMLLC disregarded entity qualifies as sole proprietor. Confirm IRC § 152 dependent status annually.

1. Red flags and "do not do this" list:
2. Do not use a corporate FMC structure (S-corp, C-corp) ... FICA exemptions and the workers' comp family exemption are entity-structure dependent.
3. Do not assign hazardous work to minors even under the parental exemption; FLSA hazardous occupations apply where FLSA covers the employer.
4. Do not pay wages not grounded in actual services rendered.
5. For SUTA, confirm the child remains the parent's IRC § 152 dependent each tax year (the exemption is dependent-status contingent, not simply age-based).

8. Sources

• [STATUTE] MCA § 41-2-102 through § 41-2-117 (Child Labor Standards Act): https://leg.mt.gov/bills/mca/title_0410/chapter_0020/parts_index.html
• [STATUTE] MCA § 41-2-104 (Exemptions including parental): https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0040/0410-0020-0010-0040.html
• [STATUTE] MCA § 41-2-105 (Prohibited employment under 14): https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0050/0410-0020-0010-0050.html
• [STATUTE] MCA § 41-2-106 (Prohibited employment 14–15): https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0060/0410-0020-0010-0060.html
• [STATUTE] MCA § 41-2-108 (Employment of 14–15 year olds): https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0080/0410-0020-0010-0080.html
• [STATUTE] MCA § 41-2-115 (Working hours): https://leg.mt.gov/bills/mca/title_0410/chapter_0020/part_0010/section_0150/0410-0020-0010-0150.html
• [STATUTE] MCA § 39-71-401 (Workers' comp exemptions including family): https://law.justia.com/codes/montana/title-39/chapter-71/part-4/section-39-71-401/
• [AGENCY GUIDANCE] Montana DWS ... Child Labor Reference Guide: https://erd.dli.mt.gov/labor-standards/child-labor-law/child-labor-law-reference-guide
• [AGENCY GUIDANCE] Montana Tax Simplification (revenue.mt.gov): https://revenue.mt.gov/montana-tax-simplification-resource-hub
• [SECONDARY] Montana State Fund ... Workers' comp who is covered: https://www.montanastatefund.com/web/home/work-comp/who-is-covered.jsf
• [SECONDARY] ALFA International Montana Workers' Comp: https://www.alfainternational.com/compendium/workers-compensation/montana/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

NRS § 48-302 ... Employment certificate required for children under sixteen

Citation: NRS § 48-302 (Laws 2022, LB780, § 4)

Official URL: https://nebraskalegislature.gov/laws/statutes.php?statute=48-302

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-302

NRS § 48-302.02 ... Parent or person standing in loco parentis; exemption (THE KEY PROVISION)

Citation: NRS § 48-302.02 (Laws 1993, LB 162, § 1)

Official URL: https://nebraskalegislature.gov/laws/statutes.php?statute=48-302.02

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-302.02

NRS § 48-303 ... Employment certificate; approval by school officer

Citation: NRS § 48-303 (Laws 2022, LB780, § 4)

Official URL: https://nebraskalegislature.gov/laws/statutes.php?statute=48-303

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-303

NRS § 48-310 ... Children under sixteen; working hours limit

Citation: NRS § 48-310 (Laws 2024, LB906, § 1; prior laws referenced therein)

Official URL: https://nebraskalegislature.gov/laws/statutes.php?statute=48-310

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-310

NRS § 48-313 ... Children under sixteen; dangerous, unhealthy, or immoral employment

Citation: NRS § 48-313

Official URL: https://nebraskalegislature.gov/laws/statutes.php?statute=48-313

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-313

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• Nebraska child labor statutes (§ 48-302) apply to employment as defined in § 48-301, which excludes certain arrangements. The § 48-302.02 parent exemption from the certificate requirement does not have a minimum age floor, but FLSA minimum age of 14 for general non-agricultural employment applies for FLSA-covered employers.
• NRS § 48-310 hours apply to "any person under sixteen years of age" ... under-14 are not categorically barred from work in Nebraska law for family employment, but § 48-313's dangerous/unhealthy work ban applies to all children under 16 and even imposes direct liability on parents who cause or permit such work.

14–15 (under 16):

• Max 48 hours/week, 8 hours/day (§ 48-310)
• Not before 6:00 a.m.
• Not after 10:00 p.m. (with possible extension if no school next day, per special permit ... § 48-310)
• § 48-313: no dangerous, unhealthy, or immoral employment

16–17:

• Nebraska child labor statutes (§§ 48-302 to 48-313) are limited to children "under sixteen years of age."
• For 16–17: FLSA hazardous occupation orders (HO 1–17) apply for under-18 for FLSA-covered employers.
• No Nebraska-specific hour restrictions found for 16–17 in NRS Chapter 48.

4. Work Permit Step-by-Step (logistics)

For a child employed by a non-parent employer:

1. The employer procures an employment certificate before the child starts work (§ 48-302)
2. The school principal approves the certificate (§ 48-303) ... principal may not approve if the child is entering employment with the principal's own business
3. Certificate contains: child's school record, age verification, and job information (§ 48-305, § 48-306)
4. The employer keeps the certificate on file, accessible to attendance officers and the Department of Labor (§ 48-302)
5. A duplicate copy is filed with the Nebraska Department of Labor (§ 48-307 ... repealed Laws 2026, LB847, § 38; verify current filing requirement with DOL)
6. Upon termination, the employer transmits the certificate back to the issuing officer, who gives it to the child on demand (§ 48-302(2))

Parent-employer / family exemption (NRS § 48-302.02): If the employing parent directly supervises the child in the parent's own business:

1. No employment certificate is required (§ 48-302.02)
2. Hours and hazardous occupation restrictions of §§ 48-310 and 48-313 still apply
3. Document the direct supervision arrangement, job description, hours worked, and wages paid
4. Maintain internal records even though no state form is required

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-302.02

5. Relevant Case Law / Administrative Guidance

Nebraska workers' comp ... NRS § 48-106: Nebraska workers' comp covers all employers with one or more employees in non-agricultural trade or business. The "related employee" exemption in § 48-106(2)(c) applies only to agricultural employers employing only related employees. For a non-agricultural FMC, no workers' comp family exemption exists. The child employee must be covered.

NRS § 48-106(9)(c): "Related employee means a spouse of an employer and an employee related to the employer within the third degree by blood or marriage." But this definition is used only in the agricultural exemption context (§ 48-106(2)(c)), not for general businesses.

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-106

Nebraska SUTA ... NRS § 48-602 and related sections: Nebraska SUTA generally follows the federal exclusion pattern. A parent's sole proprietorship or partnership employing their child under 18 may qualify for the family employment exclusion from SUTA. However, an LLC employer is generally not eligible for this exclusion because the LLC is not the parent personally.

Citation: NRS § 48-604(6)(d) ... NOTE: confirmed from official Nebraska Legislature at nebraskalegislature.gov; age threshold is 21

Official URL: https://nebraskalegislature.gov/laws/statutes.php?statute=48-604

VERIFY: https://nebraskalegislature.gov/laws/statutes.php?statute=48-604

No directly on-point Nebraska state case law or AG opinion located as of June 29, 2026 specifically addressing the § 48-302.02 family employment exemption in an FMC income-shifting context. Federal authority controls.

6. FMC / Income-Shifting Interaction (state-specific notes)

Nebraska income tax: Nebraska has a graduated individual income tax. Nebraska's standard deduction is NOT equal to the federal standard deduction; it is capped at a lower Nebraska-specific amount.

Per NRS § 77-2716.01(3)(a) (for tax years beginning on or after January 1, 2018): the Nebraska standard deduction is the smaller of the federal standard deduction actually allowed or: $6,750 (single), $9,900 (head of household), or $13,500 (married filing jointly), indexed for inflation from a 2018 base. For 2026, the Nebraska standard deduction (after inflation adjustments) is $8,350 (single), $12,250 (head of household), or $16,700 (married filing jointly) ... per the 2026 Nebraska Department of Revenue income tax withholding circular.

Key consequence for income-shifting: A child earning wages from a Nebraska FMC will have a Nebraska standard deduction lower than the federal standard deduction (approximately $8,350 vs. the 2026 federal $16,100 for a single filer). The child will have Nebraska taxable income on wages above $8,350, taxed at Nebraska's graduated rates (top rate 4.55% for 2026; dropping to 3.99% by 2027 per Nebraska tax reform legislation).

VERIFY Nebraska standard deduction: https://nebraskalegislature.gov/laws/statutes.php?statute=77-2716.01 VERIFY current amounts: https://revenue.nebraska.gov/sites/default/files/doc/tax-forms/2024/f_Individual_Income_Tax_Booklet.pdf

Workers' comp (Nebraska): Nebraska workers' comp is mandatory for non-agricultural employers with one or more employees. The § 48-106 "related employee" exemption does not apply to non-agricultural FMCs. A parent's FMC structured as an LLC must obtain Nebraska workers' comp coverage for the child.

Nebraska SUTA: Nebraska SUTA: child under 21 employed by parent in sole prop or qualifying partnership is excluded per NRS § 48-604(6)(d). LLC employer: the statute does not expressly address entity type; PRACTITIONER TO CONFIRM whether a parent-owned SMLLC disregarded for tax purposes qualifies as the "father or mother" employer for this exclusion ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-604

7. State Implementation Playbook

1. Entity and ownership setup: For Nebraska SUTA and workers' comp purposes, a sole proprietorship or partnership of parents is most favorable. A Nebraska SMLLC loses the SUTA family exclusion (if available) and has no workers' comp family exemption. Weigh the LLC liability protection against SUTA and workers' comp costs.

1. Age-appropriate role mapping:
2. Under 14: No Nebraska-specific minimum age bar for family employment. § 48-313 dangerous work ban applies. FLSA 14-year minimum applies for FLSA-covered employers. Limit to clearly non-dangerous administrative or creative tasks.
3. 14–15: Social media content, photography, administrative filing, bookkeeping support, data entry. Max 8 hours/day, 48 hours/week (Nebraska) or FLSA limits (whichever is stricter ... FLSA: 3 hours/school day, 18/school week; 8 hours/nonschool day, 40/nonschool week).
4. 16–17: Broader administrative, bookkeeping, marketing, research roles. No Nebraska hour limits; FLSA HO orders apply.

1. Permit and certificate actions:
2. If parent directly supervises child in parent's own business: No certificate required (§ 48-302.02). Document this supervisory arrangement.
3. If a certificate is needed for any reason: School principal approves; employer files with the Nebraska Department of Labor; keep on file.

1. Payroll and documentation:
2. Pay at market rate; document with written employment agreement
3. Issue W-2 annually; Nebraska income tax withholding applies
4. Nebraska standard deduction is lower than federal ... child will have Nebraska taxable income on wages above ~$8,350 (single)
5. Maintain timesheets and work product records

1. State-specific filings/insurance:
2. Nebraska workers' comp: Mandatory for LLC FMC. File with the Nebraska Workers' Compensation Court and obtain coverage.
3. Nebraska SUTA: If sole prop, family exclusion for child under 18 likely applies. If LLC, SUTA applies ... file quarterly with Nebraska Department of Labor.
4. Nebraska income tax: File Nebraska Form 1040N for the child if income exceeds state filing threshold.

1. Red flags / do not do this:
2. Do not rely on § 48-302.02 exemption if the parent is not directly supervising ... the statute requires "directly supervises" in the parent's own business.
3. Do not structure the FMC as an LLC and assume the workers' comp family exemption applies ... it does not for non-agricultural businesses in Nebraska.
4. Do not neglect Nebraska income tax withholding merely because the federal standard deduction shelters federal income.
5. Do not use § 48-313 prohibition loosely ... Nebraska bars under-16 children from work "dangerous to life or limb or in which health may be injured or morals depraved," and the parent can personally be held liable for permitting such work.

8. Sources

• [STATUTE] NRS § 48-301 ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-301
• [STATUTE] NRS § 48-302 ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-302
• [STATUTE] NRS § 48-302.02 ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-302.02
• [STATUTE] NRS § 48-303 ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-303
• [STATUTE] NRS § 48-310 ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-310
• [STATUTE] NRS § 48-313 ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-313
• [STATUTE] NRS § 48-106 (workers' comp) ... https://nebraskalegislature.gov/laws/statutes.php?statute=48-106
• [STATUTE] NRS § 77-2716.01 (Nebraska standard deduction) ... https://nebraskalegislature.gov/laws/statutes.php?statute=77-2716.01
• [AGENCY GUIDANCE] Nebraska 2024 Individual Income Tax Instructions ... https://revenue.nebraska.gov/sites/default/files/doc/tax-forms/2024/f_Individual_Income_Tax_Booklet.pdf
• [AGENCY GUIDANCE] Nebraska Legislature Chapter 48 index ... https://nebraskalegislature.gov/laws/browse-chapters.php?chapter=48
• [SECONDARY] NRS § 77-2716.01 Justia 2024 ... https://law.justia.com/codes/nebraska/chapter-77/statute-77-2716/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Governing statute: Nevada Revised Statutes, Chapter 609 (Employment of Minors). Official URL: https://www.leg.state.nv.us/NRS/NRS-609.html

Prohibited occupations ... NRS 609.190(1)–(3) (verbatim from official source):

Citation: NRS 609.190

Official URL: https://www.leg.state.nv.us/NRS/NRS-609.html

VERIFY: https://www.leg.state.nv.us/NRS/NRS-609.html

Hours of work ... NRS 609.240(1) (verbatim):

Citation: NRS 609.240

Official URL: https://www.leg.state.nv.us/NRS/NRS-609.html

VERIFY: https://www.leg.state.nv.us/NRS/NRS-609.html

Note: FLSA is stricter for 14–15-year-olds in interstate commerce (3 hrs/school day, 18 hrs/school week); FLSA controls.

Under-14 employment ... court permission requirement ... NRS 609.245 (verbatim):

Citation: NRS 609.245

Official URL: https://www.leg.state.nv.us/NRS/NRS-609.html

VERIFY: https://www.leg.state.nv.us/NRS/NRS-609.html

School-hour prohibition ... NRS 609.250 (verbatim):

Citation: NRS 609.250

Official URL: https://www.leg.state.nv.us/NRS/NRS-609.html

VERIFY: https://www.leg.state.nv.us/NRS/NRS-609.html

SUTA family employment exclusion ... NRS 612.105 (verbatim from official source):

Citation: NRS 612.105

Official URL: https://www.leg.state.nv.us/NRS/NRS-612.html#NRS612Sec105

VERIFY: https://www.leg.state.nv.us/NRS/NRS-612.html#NRS612Sec105

Nevada Employment Security Division (ESD) Employer Handbook confirms:

Source: Nevada ESD Employer Handbook (2023), p. referenced above

Official URL: https://detr.nv.gov/content/media/Employer_Handbook_Published_9_2023.pdf

VERIFY: https://detr.nv.gov/content/media/Employer_Handbook_Published_9_2023.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• In stores, shops, factories, mines, or any inside employment (not farmwork or housework): requires written permission from a district court judge.
• May not work during school hours unless excused by school district or juvenile court.
• FLSA parental exemption (29 U.S.C. § 203(l)) provides an overlay for businesses in interstate commerce: child under 16 may work for a parent in non-mining, non-manufacturing, non-declared-hazardous occupations.

Ages 14–15:

• Maximum: 48 hrs/week, 8 hrs/day (NRS 609.240) ... but FLSA is stricter (3 hrs/school day, 18 hrs/school week, 8 hrs/day, 40 hrs/week) for interstate commerce employers; FLSA controls.
• Prohibited: all NRS 609.190 occupations and any occupation declared hazardous by the Labor Commissioner.

Ages 16–17:

• NRS Chapter 609 does not state hour limits for 16–17-year-olds.
• Federal HOs for under-18 (17 categories) apply for interstate commerce employers.

4. Work Permit Step-by-Step (logistics)

Nevada does NOT have a standard work permit or employment certificate system.

For minors under 14 working in inside employment (not farmwork/housework):

1. Parent, employer, or the minor's custodian must petition the district court of the county of the child's residence.
2. A judge of the district court (or an authorized juvenile master, referee, or probation officer) must sign a written permission for the employment.
3. This written permission is required before employment begins; employing without it is a misdemeanor.
4. Practical note: Nevada Family Law Self-Help Center guidance notes that proposed orders must be submitted to the judge via email in PDF format.

VERIFY: https://www.familylawselfhelpcenter.org/self-help/other-topics/juvenile-employment

For minors 14 and older:

• No work permit required.
• Employers should maintain age-verification documentation as a best practice.

Parent-owned business / FMC:

• The "housework" exemption in NRS 609.245 carves out work "in connection with... housework" from the court-permission requirement for under-14 children. A home-based FMC performing administrative tasks might qualify as "housework" in context, but this is not settled under Nevada law.
• For children 14 and older, no permit is required regardless of parental ownership.
• The FLSA parental exemption applies in interstate commerce contexts.

5. Relevant Case Law / Administrative Guidance

No directly on-point Nevada state case law or AG opinion located as of June 29, 2026, specifically addressing family management company employment of minor children for income-shifting purposes.

Nevada Employers Association guidance (secondary): https://www.nevadaemployers.org/employing-minors-rules-under-state-and-federal-law/

Nevada ESD Employer Handbook (2023): https://detr.nv.gov/content/media/Employer_Handbook_Published_9_2023.pdf

6. FMC / Income-Shifting Interaction (state-specific notes)

Nevada has NO state income tax. Nevada does not impose any individual income tax on wages, salaries, investment income, or any other form of personal income. There is no state income tax return to file. This makes Nevada the most favorable Mountain West state for income-shifting: 100% of the tax benefit is at the federal level, and no Nevada state tax complicates the analysis.

VERIFY: https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/

Unemployment insurance (SUTA): NRS 612.105 excludes from "employment" service by a child under 18 employed by a parent. Note: this is narrower than the federal FUTA exemption (under 18; same) but narrower than most state analogs (which use under-21). Foster and stepchildren are included per Nevada ESD guidance.

• Sole proprietorship or qualifying sole-owner entity: Child under 18 employed by parent ... SUTA excluded (NRS 612.105).
• Corporation or S-corp: No family exclusion; SUTA applies.
• Partnership: Exclusion applies only if the required family relationship exists for all partners.

VERIFY: https://www.leg.state.nv.us/NRS/NRS-612.html#NRS612Sec105

Workers' compensation:

Verified: Nevada workers' compensation (NRS 616A.110) ... NO family-employment exemption for minor children in non-agricultural FMCs.

NRS 616A.105 defines "Employee" and "worker" broadly as "every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed."

NRS 616A.110 lists all persons excluded from the definition of "employee":

Citation: NRS 616A.110

Official URL: https://www.leg.state.nv.us/NRS/NRS-616A.html

VERIFY: https://www.leg.state.nv.us/NRS/NRS-616A.html

There is no family-employment exclusion in NRS 616A.110 for minor children of a parent sole proprietor in non-agricultural commercial employment. Exclusion 4 covers "household domestic service, farm, dairy, agricultural or horticultural labor" ... it does not extend to administrative, marketing, or content-creation services performed for a commercial FMC. A minor child employed in a parent-owned SMLLC FMC in Nevada is a covered employee for workers' compensation purposes, and the FMC must carry WC coverage.

Practitioner note: Nevada requires most employers with one or more employees to maintain WC coverage through a licensed insurer or the State Industrial Insurance System (SIIS). Even for a sole proprietor with a single minor-child employee, coverage is mandatory.

7. State Implementation Playbook

1. Entity and ownership setup: A Nevada SMLLC taxed as a disregarded entity (sole proprietorship for federal purposes), owned solely by one parent. No state income tax. FICA/FUTA exemptions (federal) available for child under 18. SUTA excluded (NRS 612.105) for child under 18 employed by parent in qualifying sole prop/SMLLC entity.

1. Age-appropriate role mapping:
2. Under 14 (at home-based FMC): The "housework" carve-out in NRS 609.245 may allow home-based FMC work without court permission; however, this interpretation is not settled. For certainty, obtain a district court judge's written permission for under-14 inside employment if the FMC is not clearly "housework."
3. Age 14–15: Office/clerical, social media content, bookkeeping, photography ... core FMC roles. FLSA hour limits control (3 hrs/school day, 18 hrs/school week) for interstate commerce employers.
4. Age 16–17: Broad range of non-hazardous business tasks.

1. Permit/certificate actions: For under-14 inside employment not qualifying as housework, obtain written court permission (NRS 609.245). For 14+, no permit required. Maintain age documentation on file.

1. Payroll and documentation actions:
2. Run W-2 payroll. No Nevada state income tax withholding ... federal withholding only.
3. No FICA/FUTA for child under 18 in qualifying SMLLC FMC.
4. No SUTA for child under 18 in qualifying sole prop/SMLLC FMC (NRS 612.105).
5. Document tasks, hours, rate, and dates.

1. State-specific filings / insurance:
2. No Nevada state income tax return.
3. Workers' comp: coverage is mandatory for the FMC as soon as it employs one or more workers, including a minor child (NRS 616A.110 ... no family exemption). Obtain coverage through a licensed private insurer or the State Industrial Insurance System (SIIS). VERIFY: https://www.leg.state.nv.us/NRS/NRS-616A.html
4. Nevada has no statewide paid leave mandate (as of current law).

1. Red flags and "do not do this" list:
2. Do not use a corporate or S-corp FMC ... NRS 612.105 SUTA exclusion is lost; FICA/FUTA exemptions are also lost.
3. Do not employ under-14 children in inside employment without court permission (NRS 609.245) unless clearly within the farmwork or housework exemptions.
4. Do not assign NRS 609.190 hazardous occupations to minors under 16.
5. Do not pay wages that cannot be justified as ordinary and reasonable for actual tasks performed.
6. Do not skip workers' comp: NRS 616A.110 contains no family-employment exemption for non-agricultural commercial employers. WC coverage is mandatory once the FMC employs any worker, including a minor child. VERIFY: https://www.leg.state.nv.us/NRS/NRS-616A.html

8. Sources

• [STATUTE] NRS Chapter 609 (Employment of Minors, full text): https://www.leg.state.nv.us/NRS/NRS-609.html
• [STATUTE] NRS 609.190 (prohibited occupations under 16): https://www.leg.state.nv.us/NRS/NRS-609.html
• [STATUTE] NRS 609.240 (hours of work): https://www.leg.state.nv.us/NRS/NRS-609.html
• [STATUTE] NRS 609.245 (court permission for under-14): https://www.leg.state.nv.us/NRS/NRS-609.html
• [STATUTE] NRS 609.250 (school-hour prohibition): https://www.leg.state.nv.us/NRS/NRS-609.html
• [STATUTE] NRS 612.105 (SUTA family employment exclusion): https://www.leg.state.nv.us/NRS/NRS-612.html#NRS612Sec105
• [AGENCY GUIDANCE] Nevada ESD Employer Handbook (2023): https://detr.nv.gov/content/media/Employer_Handbook_Published_9_2023.pdf
• [AGENCY GUIDANCE] Nevada Dept. of Taxation ... No Income Tax: https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/
• [AGENCY GUIDANCE] Nevada Family Law Self-Help Center ... Juvenile Employment (court process for under-14): https://www.familylawselfhelpcenter.org/self-help/other-topics/juvenile-employment
• [SECONDARY] Nevada Employers Association ... Employing Minors: https://www.nevadaemployers.org/employing-minors-rules-under-state-and-federal-law/
• [SECONDARY] Nevada.Public.Law NRS 612.105 (corroborating): https://nevada.public.law/statutes/nrs_612.105

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Definitions:

VERIFY: https://www.gencourt.state.nh.us/rsa/html/XXIII/276-A/276-A-3.htm

Core prohibitions and family exemptions:

VERIFY: https://law.justia.com/codes/new-hampshire/title-xxiii/chapter-276-a/section-276-a-4/

Certificate procedure:

VERIFY: https://www.gencourt.state.nh.us/rsa/html/XXIII/276-A/276-A-5.htm (NH DOL confirms this procedure at https://www.nh.gov/labor/inspection/wage-hour/youth-employment.htm)

Christmas exception:

VERIFY: https://www.gencourt.state.nh.us/rsa/html/XXIII/276-A/276-A-15.htm

3. Hours / Prohibited Occupations for Minors (by age band)

Under 12 (RSA 276-A:4(V)): Cannot work for anyone except parents, grandparents, or guardian. Also casual work and door-to-door newspaper delivery.

Ages 12-15 (RSA 276-A:4(II), (III), (IV)):

Note: Federal FLSA limits for 14-15 (18 hrs/week school week, 3 hrs/day school days, 40 hrs/week non-school weeks) may be stricter than some NH limits; FLSA controls where it is stricter.

Ages 16-17 enrolled in school (RSA 276-A:4(VI), (VII)):

Prohibited hazardous occupations (all youths under 18, RSA 276-A:4(I)): NH adopts the federal HO 1-17 list by reference to FLSA determinations. These include explosives manufacturing, motor vehicle driving, coal mining, logging/sawmilling, power-driven woodworking, radioactive substances exposure, power-driven hoisting apparatus, metalworking punch/shear machines, mining, slaughtering/meatpacking, power-driven bakery machines, power-driven paper-products machines, brick/tile manufacturing, power-driven circular/band saws/guillotine shears, wrecking/demolition, roofing, and excavation.

4. Work Permit Step-by-Step (logistics)

For minors ages 12-15 (Youth Employment Certificate required, RSA 276-A:4(II); 276-A:5):

1. Minor finds a job.
2. Employer completes the Employer's Request for Child Labor form (available from NH DOL at https://www.nh.gov/labor/forms.htm).
3. Youth takes the form to the local school principal (or designated school official) or to the parent/guardian to obtain a signed certificate confirming satisfactory academic performance.
4. Youth returns the signed certificate to the employer.
5. Employer keeps the certificate on file at the worksite within 3 business days of the first day of employment.

Family exemption from certificate (RSA 276-A:4(II)(a)): When a youth under 16 works for his or her parents, grandparents, or guardian, no Youth Employment Certificate is required. This exemption applies to work for a parent regardless of whether the parent is operating a sole proprietorship or an LLC. Because the statute refers to work "for" the parent (not to the employer's legal form), a parent-owned SMLLC almost certainly qualifies, though no NH ruling directly addresses LLC structures.

For minors ages 16-17 enrolled in school (RSA 276-A:4(VIII)): Employer must obtain and keep on file a signed written document from the youth's parent or legal guardian permitting employment. This is not a formal certificate but a parental permission form. If the employer is the parent, this requirement is functionally self-fulfilling but should still be documented.

5. Relevant Case Law / Administrative Guidance

No directly on-point New Hampshire case law or Attorney General opinion located as of June 2026 addressing income-shifting through a parent-owned FMC employing a minor child, or interpreting the RSA 276-A:4(II)(a) family exemption in the context of an LLC.

NH DOL publishes youth employment fact sheets and forms at https://www.nh.gov/labor/inspection/wage-hour/youth-employment.htm, confirming the certificate exemption for work performed for parents/grandparents/guardians.

No directly on-point state case law located as of June 2026; federal authority controls.

6. FMC / Income-Shifting Interaction (state-specific notes)

Entity structure note: RSA 276-A:4(II)(a) exempts work "for his or her parents, grandparents, or guardian" -- it does not reference entity form. A parent-owned SMLLC, being a disregarded entity, is effectively "the parent" for employment purposes. The exemption from the Youth Employment Certificate is almost certainly available. Even so, best practice is to document the parent-employer relationship in writing.

State income tax -- CRITICAL: New Hampshire has no personal income tax as of January 1, 2025. The Interest and Dividends Tax, which had previously taxed interest and dividend income at 3% (TY 2024) and 4% (TY 2023), was fully repealed effective January 1, 2025. Wages, salaries, and earned income were never subject to NH income tax. As of 2025, NH imposes zero personal income tax on individuals of any age, including a minor child.

Practical implication: A minor child employed through a parent-owned NH-based FMC has no NH state income tax liability on wages. The entire income-shifting benefit at the state level is realized through the absence of state income tax, not through standard deduction mechanics.

VERIFY (NH I&D Tax repeal): https://www.mclane.com/insights/nh-interest-and-dividends-tax-repealed-as-of-january-1/ and https://nashua.inklink.news/nh-department-of-revenue-reminds-taxpayers-interest-and-dividends-tax-no-longer-exists/

Workers' compensation (RSA 281-A): New Hampshire requires all employers to maintain workers' compensation insurance for employees. RSA 281-A:2(IX) defines "employee" broadly. Minor child employees in a parent-owned business are generally covered unless an exemption applies. Key point from NH DOL and published materials: if a minor is employed in a hazardous occupation in violation of RSA 276-A, the employer faces double compensation liability (RSA 281-A:33).

Verified text of RSA 281-A:2(IX) and family-member exclusion analysis:

RSA 281-A:2 paragraph IX defines "Employer" for public employment (not "Employee"). It reads:

The employee definition for private employment is in RSA 281-A:2, paragraph VI, which broadly covers "any person in the service of an employer... under any express or implied, oral or written contract of hire." There is no family-member exclusion in paragraph VI of RSA 281-A:2. The statute contains no exemption for a child employed by a parent in a private business. The presumption of employment is strong (RSA 281-A:2, VI(b)(1)). Therefore, a minor child employed in a parent-owned LLC or sole proprietorship is presumptively a covered employee for NH workers' compensation purposes, and the employer must carry workers' compensation insurance or establish an independent contractor relationship.

PRACTITIONER TO CONFIRM: Confirm NH WC coverage obligation for minor child in parent-owned FMC with NH Department of Labor (603-271-3176) before electing to forgo coverage ... no statutory family exemption was located.

VERIFY: https://law.justia.com/codes/new-hampshire/title-xxiii/chapter-281-a/section-281-a-2/ (Justia, confirming official text; official NH General Court site at https://www.gencourt.state.nh.us/rsa/html/XXIII/281-A/281-A-mrg.htm, retrieved June 29, 2026).

Unemployment insurance (NH SUTA): NH Employment Security Law exempts from "employment" service performed by a child under 18 in the employ of the child's parent, provided the employer is a sole proprietorship (not a corporation or LLC taxed as a corporation). An SMLLC treated as a disregarded entity may qualify, but NH statute must be confirmed.

Verified text of RSA 282-A:9(IV)(u) (the NH SUTA family-employment exclusion):

Key points: (1) The NH SUTA exclusion covers a child under age 21 (broader than the FUTA analog's under-18 rule). (2) The text says "father or mother" ... it does not specify sole proprietorship versus LLC, but the FUTA conditionality in RSA 282-A:9(IV) preamble states these exemptions apply only if "also exempt under the Federal Unemployment Tax Act, as amended." FUTA § 3306(c)(5) covers child under 21 employed by a parent. For an SMLLC disregarded entity, the FUTA exemption is available, and therefore the NH SUTA exemption should apply as well. An LLC taxed as a corporation is not eligible. Confirm LLC-disregarded-entity treatment with NH Employment Security before relying on this exclusion.

VERIFY: https://law.justia.com/codes/new-hampshire/title-xxiii/chapter-282-a/section-282-a-9/ (Justia, confirming official text, retrieved June 29, 2026); also confirmed by National Dairy Farm Fact Sheet at https://nationaldairyfarm.com/wp-content/uploads/2025/12/New-Hampshire-Fact-Sheet-2025-Update.pdf.

7. State Implementation Playbook

1. Entity & ownership setup: Parent-owned SMLLC (disregarded entity). NH has no personal income tax, so the income-shifting benefit at the state level is delivered through zero NH tax on the child's wages. Confirm SMLLC structure with NH counsel.

1. Age-appropriate role mapping:
2. Under 12: Work for parent's business is technically lawful (RSA 276-A:4(V) exempts), but a child under 12 should be given only extremely age-appropriate tasks (simple filing, product modeling under supervision). Hourly documentation essential.
3. 12-15: Office/administrative work, social media content creation, photography, light clerical tasks. No manufacturing, no hazardous work.
4. 16-17: Nearly any non-hazardous role including bookkeeping, customer service, content creation, research. School-week hour limits apply.

1. Permit/certificate actions:
2. Ages 12-15 working for a parent: No certificate required (RSA 276-A:4(II)(a) exemption). Document the exemption in the employment file.
3. Ages 16-17: Parent should execute and keep on file a signed parental permission form per RSA 276-A:4(VIII) -- even if the employer is the parent, this provides a clean paper trail.
4. Keep a record of the exemption basis (copy of RSA 276-A:4(II)(a)) in the employment file.

1. Payroll & documentation actions:
2. Put child on W-2 payroll.
3. Pay fair market rate for actual work performed (document with time records and task descriptions).
4. Keep time records consistent with NH employer posting requirements (RSA 276-A:20).
5. Issue W-2 at year end; child files federal return (no NH state return required).

1. State-specific filings / insurance:
2. No NH state income tax return required for the child or the FMC on the income-shifting wages.
3. Confirm workers' compensation coverage obligation with NH DOL or counsel -- minor children employed in a parent's business may or may not be excluded under RSA 281-A.
4. Confirm whether NH SUTA applies to child wages in parent-owned SMLLC.

1. Red flags and "do not do this" list:
2. Do NOT employ the minor in any HO 1-17 hazardous occupation, even for a parent. RSA 276-A:4(I) prohibits all youths from hazardous occupations without exception.
3. Do NOT convert the FMC to an S-corp or C-corp -- doing so ends the FICA/FUTA exemption and may affect the NH child labor certificate exemption.
4. Do NOT pay the child without payroll, W-2, and proper records.
5. Do NOT exceed school-week hour limits for 16-17 year olds enrolled in school.
6. Do NOT assume WC or SUTA exemptions without verifying the specific NH statutes.

8. Sources

• [STATUTE] RSA 276-A:3 (Definitions): https://www.gencourt.state.nh.us/rsa/html/XXIII/276-A/276-A-3.htm
• [STATUTE] RSA 276-A:4 (Prohibitions, family exemption): https://law.justia.com/codes/new-hampshire/title-xxiii/chapter-276-a/section-276-a-4/
• [STATUTE] RSA 276-A:5 (Certificate procedure): https://www.gencourt.state.nh.us/rsa/html/XXIII/276-A/276-A-5.htm
• [STATUTE] RSA 276-A:15 (Christmas exception): https://www.gencourt.state.nh.us/rsa/html/XXIII/276-A/276-A-15.htm
• [SECONDARY] NH DOL Youth Employment overview: https://www.nh.gov/labor/inspection/wage-hour/youth-employment.htm
• [SECONDARY] Justia RSA 276-A:4 (2024): https://law.justia.com/codes/new-hampshire/title-xxiii/chapter-276-a/section-276-a-4/
• [SECONDARY] NH I&D Tax repeal (McLane Middleton): https://www.mclane.com/insights/nh-interest-and-dividends-tax-repealed-as-of-january-1/
• [SECONDARY] NH I&D Tax repeal (Nashua Ink Link): https://nashua.inklink.news/nh-department-of-revenue-reminds-taxpayers-interest-and-dividends-tax-no-longer-exists/
• [SECONDARY] Baker Donelson NH labor summary: https://www.bakerdonelson.com/easy-guide-new-hampshire

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

N.J.S.A. 34:2-21.2 ... Minimum age; family/parent own-home exemption

Citation: N.J.S.A. 34:2-21.2, P.L. 1940, c.153 Official URL: https://www.nj.gov/labor/wageandhour/tools-resources/laws/childlaborlaws.shtml (full text; also NJ DOL PDF: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf) VERIFY: https://www.nj.gov/labor/wageandhour/tools-resources/laws/childlaborlaws.shtml

KEY NOTE: The phrase "directly for his parents or legal guardian" and "in connection with the minor's own home" means this exemption does NOT cover employment in a separate parent-owned business or FMC operating from a business location.

N.J.S.A. 34:2-21.3 ... Hours limitations

Citation: N.J.S.A. 34:2-21.3 Official URL: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf VERIFY: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf

N.J.S.A. 34:2-21.7 ... Employment certificate requirement

Citation: N.J.S.A. 34:2-21.7 Official URL: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf VERIFY: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf

N.J.S.A. 34:2-21.1(c) ... "Issuing officer" definition

Citation: N.J.S.A. 34:2-21.1(c) Official URL: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf VERIFY: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14

• No gainful employment permitted (§ 34:2-21.2)
• Exceptions: domestic service/agricultural work at minor's own home for parents (§ 34:2-21.2); theatrical permits (§ 34:2-21.59); street trade/agricultural pursuits with special permit (§ 34:2-21.15)

14–15

• Outside school hours and vacations only; NOT in factories
• Max 40 hrs/week; max 8 hrs/day; max 6 consecutive days (§ 34:2-21.3)
• Under 16: no work before 7 a.m. or after 7 p.m. (except summer, restaurants, retail: until 9 p.m. with parental permission)
• During school year: max 3 hrs on school day; max 18 hrs in school week (§ 34:2-21.3 cross-ref FLSA)

16–17

• No work before 6 a.m. or after 11 p.m. (extended for vacations with parental written permit) (§ 34:2-21.3)
• Summer (last day of school year through Labor Day): up to 50 hrs/week, up to 10 hrs/day (§ 34:2-21.3(b))
• Max 40 hrs/week general rule; max 8 hrs/day

Prohibited occupations (all minors under 18): N.J.A.C. 12:58 (NJ Child Labor regulations) lists detailed prohibited occupations parallel to federal HOs. Key prohibitions include: operating power-driven machinery in manufacturing; meat packing; logging; mining; explosives; roofing and excavation.

VERIFY: https://www.law.cornell.edu/regulations/new-jersey/title-12/chapter-58

4. Work Permit Step-by-Step (logistics)

1. Minor applies in person to the "issuing officer" (designated by the local board of education ... typically a school district superintendent, supervising principal, or designated teacher) (§ 34:2-21.8)

1. Required documents submitted:
2. Promise of employment signed by prospective employer: nature of occupation, wage, hours per day and days per week (§ 34:2-21.8(1))
3. Proof of age ... in priority order: birth certificate or registrar-issued certified statement; baptismal certificate; other documentary evidence (passport, life insurance policy) ... a school record of age or parental affidavit alone is not accepted unless no other proof is obtainable (§ 34:2-21.8(2))
4. Statement of physical fitness signed by a licensed physician or advanced practice nurse (§ 34:2-21.8(3))
5. School record signed by school principal (name, date of birth, grade last completed, residence) (§ 34:2-21.8(4))

1. Issuing officer reviews and issues the certificate in triplicate: original mailed to employer, duplicate to NJ DOL in Trenton, triplicate retained by issuing officer (§ 34:2-21.7(c), (e))

1. Employer keeps certificate on file at the place of employment, accessible to attendance officers, inspectors, and DOL personnel (§ 34:2-21.14)

1. Upon termination: Employer returns certificate to issuing officer within 2 days (§ 34:2-21.14). Certificate is employer-specific and occupation-specific.

Parent-owned-business exemption from permit? NO. The only business-related exemption is for 14-and-over at an agricultural fair for 10 days or fewer, and for 16-and-over in agricultural pursuits. There is NO exemption for parent-owned commercial businesses or FMCs. A child working in a parent's FMC (even as sole office admin or social media manager) needs a certificate.

VERIFY: https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf

5. Relevant Case Law / Administrative Guidance

No directly on-point New Jersey state case law located as of June 29, 2026 addressing FMC income-shifting and the family employment / own-home exemption.

NJ DOL Guidance: The NJ Division of Wage and Hour publishes the complete child labor law text and confirms the family own-home exemption is limited to domestic/agricultural work at the minor's home for parents. See: https://www.nj.gov/labor/wageandhour/tools-resources/laws/childlaborlaws.shtml

VERIFY: https://www.nj.gov/labor/wageandhour/tools-resources/laws/childlaborlaws.shtml

Federal authority controls on FLSA parent exemption scope.

6. FMC / Income-Shifting Interaction (state-specific notes)

FMC structure interaction:

• NJ does not have an exemption for parent-owned business employment ... a child working in a parent's SMLLC FMC must obtain an employment certificate
• Factory prohibition and hours limits for 14–15 apply regardless of family ownership
• The domestic/agricultural own-home exemption is narrow and does not apply to a commercial FMC

State Income Tax NJ has a graduated income tax (N.J.S.A. 54A:1-1 et seq.), rates ranging from 1.4% to 10.75% (7 brackets in 2025/2026).

Critical difference from federal: New Jersey does NOT have a standard deduction in the traditional sense. N.J.S.A. 54:8A-9 provides a limited "standard deduction" that is capped at $1,500 for single filers (17% of gross income or $1,500, whichever is less, under 1981-and-after rules). In practice, NJ uses personal exemptions ($1,000 per exemption) rather than the large federal standard deduction.

Implication: A minor child earning wages from the parent's FMC will owe NJ income tax on nearly the full amount of earned wages, with only a $1,000–$2,500 NJ "standard deduction" available. The federal standard deduction benefit (up to $16,100 for 2026 single filer) does not flow to NJ. This significantly reduces the income-shifting benefit at the state level.

Citation: N.J.S.A. 54:8A-9; confirmed by NJ DOL/Treasury 2025 updates: https://www.nj.gov/treasury/taxation/new2025.shtml VERIFY: https://www.nj.gov/treasury/taxation/new2025.shtml

Workers' Compensation NJ Workers' Compensation Law covers all employees including minors. Per NJ DOL guidance, minors injured on the job are eligible for workers' compensation benefits regardless of age or legal employment status. No family/parent exemption from workers' comp coverage. Parent employing minor child in FMC MUST carry workers' comp.

Source: https://www.nj.gov/labor/myworkrights/worker-protections/workers_under_18/ VERIFY: https://www.nj.gov/labor/myworkrights/worker-protections/workers_under_18/

State Unemployment Insurance (NJ SUTA) Under N.J.S.A. 43:21-19(i)(6)(B) the services of a child under 18 employed by the child's parent in domestic service in or about a home are excluded from covered employment. This mirrors the federal FUTA exemption. A commercial FMC is not "domestic service in or about a home," so the minor child employed by a parent's FMC is likely a covered employee for NJ UI purposes unless further guidance confirms otherwise.

Verified text of N.J.S.A. 43:21-19(i)(7)(C) (the NJ SUTA family-employment exclusion):

Note on citation: The file previously referenced N.J.S.A. 43:21-19(i)(6)(B). The official text retrieved from Justia (citing the NJ Revised Statutes) confirms that the family-employment exclusion is located at § 43:21-19(i)(7)(C) ... subparagraph (7) (which lists services exempt from "employment" provided they are also exempt under FUTA), not subparagraph (6) (which covers the independent contractor ABC test).

Key points on FMC coverage: (1) A child under 18 employed by a parent in a commercial FMC (not domestic service) is excluded from NJ SUTA under § 43:21-19(i)(7)(C), but only if the employment is also exempt under FUTA. For an SMLLC disregarded entity, FUTA § 3306(c)(5) provides the federal exemption, so NJ SUTA exclusion applies. (2) The exclusion does NOT apply if the FMC is an S-corp, C-corp, or LLC taxed as a corporation ... in those cases, NJ SUTA applies to the minor's wages. (3) N.J. courts have held the exclusion requires the FUTA condition to be satisfied and is not automatic solely by family relationship (see Schaer Law analysis of § 43:21-19(i)(7) conditionality).

VERIFY: https://law.justia.com/codes/new-jersey/title-43/section-43-21-19/ (Justia, citing official NJ Revised Statutes, retrieved June 29, 2026).

7. State Implementation Playbook (numbered, actionable)

1. Entity setup: Parent-owned SMLLC (disregarded entity) or sole proprietorship. Avoid S-corp or multi-member LLC for FICA/FUTA/SUTA family exemption preservation. Confirm NJ SUTA treatment for FMC structure.

1. Age-appropriate role mapping:
2. 14–15: social media, photography, admin/office work, content creation ... no factory work; need employment certificate
3. 16–17: expanded tasks including bookkeeping, client-facing digital marketing; broader hours

1. Permit/certificate actions: Minor applies in person to school district issuing officer; bring promise of employment, proof of age (birth certificate preferred), physical fitness certificate, school record. No exemption for parent-owned FMC. Process typically takes 1–2 weeks.

1. Payroll & documentation: Run genuine payroll; document specific tasks, hours, and reasonable age-appropriate compensation. NJ has no meaningful standard deduction ... factor in child's NJ tax liability in wage planning.

1. State-specific filings / insurance: File NJ-1040 for minor if income exceeds filing threshold; carry workers' comp (mandatory); consider whether NJ TDI (temporary disability insurance) applies; SDI/FLI withholding from employee wages required.

1. Red flags / "do not do this" list:
2. Do not use a corporation or S-corp structure if trying to preserve SUTA family exemption
3. Do not skip employment certificate ... the NJ own-home/parent exemption covers only domestic/agricultural home-based work, not FMC employment
4. Do not assume federal standard deduction flows to NJ ... it does not; the child will owe NJ tax on nearly all earnings
5. Do not exceed age/hours limits

8. Sources (every URL used)

• [STATUTE] N.J.S.A. 34:2-21.1 through 34:2-21.16 (full child labor law text): https://www.nj.gov/labor/wageandhour/tools-resources/laws/childlaborlaws.shtml
• [STATUTE] NJ Child Labor Law PDF (official NJ DOL): https://www.nj.gov/labor/wageandhour/assets/PDFs/Forms%20and%20Publications/mw-130.pdf
• [STATUTE] N.J.S.A. 54:8A-9 (NJ standard deduction): https://law.justia.com/codes/new-jersey/title-54/section-54-8a-9/
• [AGENCY GUIDANCE] NJ DOL Young Workers rights page: https://www.nj.gov/labor/myworkrights/worker-protections/workers_under_18/
• [AGENCY GUIDANCE] NJ Treasury 2025 income tax changes: https://www.nj.gov/treasury/taxation/new2025.shtml
• [AGENCY GUIDANCE] NJ Division of Taxation deductions guide: https://www.nj.gov/treasury/taxation/njit13.shtml
• [SECONDARY] NJ Administrative Code Title 12, Ch. 58 (child labor regulations): https://www.law.cornell.edu/regulations/new-jersey/title-12/chapter-58

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

NMSA 1978 § 50-6-1 -- Children under 14:

Citation: NMSA 1978 § 50-6-1 (Laws 1925, ch. 79, §1; 2007, ch. 257, §4)

VERIFY: https://law.justia.com/codes/new-mexico/chapter-50/article-6/section-50-6-1/

NMSA 1978 § 50-6-2 -- Work permit for children 14-16:

Citation: NMSA 1978 § 50-6-2 (Laws 1925, ch. 79, §2; 2007, ch. 257, §5)

VERIFY: https://law.justia.com/codes/new-mexico/chapter-50/article-6/section-50-6-2/

2007 NM Child Labor Act Amendment (SB 175, § 2) -- FAMILY/PARENT EXEMPTION (KEY PROVISION):

Citation: NM SB 175, §2 (2007 Regular Session), enacting new section of Ch. 50, Art. 6 NMSA 1978

VERIFY: https://www.nmlegis.gov/Sessions/07%20Regular/final/SB0175.html

NMSA 1978 § 50-6-7 -- Work permit issuance:

Citation: NMSA 1978 § 50-6-7 (Laws 1925; 2007, ch. 257)

VERIFY: https://law.justia.com/codes/new-mexico/chapter-50/article-6/section-50-6-7/

New Mexico DWS Official Guidance (Child Labor page):

VERIFY: https://www.dws.nm.gov/Child-Labor

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (no parent-employer exemption):

• Prohibited from all employment except: newspaper delivery; entertainment productions (pre-auth certificate required); parent-owned business (any age, non-manufacturing/mining/hazardous); babysitting/minor chores in private homes.
• No work permit required for parent-employer exception.

Under 14 (parent employer):

• May work in any occupation except manufacturing, mining, or hazardous occupations.
• No work permit required; no hour restrictions imposed by §§ 50-6-1 through 50-6-3 (SB 175 exception).
• Still subject to FLSA parental exemption limits (no manufacturing, mining, declared hazardous HOs).

Ages 14-15 (non-parent employer):

• School in session: max 3 hrs/school day, max 18 hrs/week, not before 7 a.m. or after 7 p.m.; not during school hours.
• School not in session: max 8 hrs/day, max 40 hrs/week, not before 7 a.m. (after June 1: not after 9 p.m.).
• Work permit required; issued by school principal or NMDWS.

Ages 14-15 (parent employer):

• SB 175 exception: no permit, no hour/age restrictions under §§ 50-6-1 through 50-6-3.
• Cannot work in manufacturing, mining, or hazardous occupations.

Ages 16-17:

• No state hour restrictions (mirror FLSA; no state nightwork rule for 16-17).
• No work permit required under NM law.
• Federal FLSA hazardous occupation orders (HO 1-17) apply.

Hazardous occupations: New Mexico defers to FLSA hazardous occupation orders. NMDWS NMAC 11.1.4 adopts FLSA definition: "Hazardous occupation means any occupation defined as hazardous by the United States department of labor under 29 U.S.C. 201 et seq. of the FLSA." VERIFY: https://www.dws.state.nm.us/Portals/0/DM/LaborRelations/11_1_4_NMAC_Proposed.pdf

4. Work Permit Step-by-Step (logistics)

For 14-15 year old minors NOT employed by parent:

1. Child or employer contacts: school principal, school superintendent, designated school official, or NMDWS Labor Relations Division director.
2. Child provides proof of age (birth certificate, BIA records, passport, or government-issued ID).
3. Issuing officer reviews that the proposed work is not dangerous or injurious to the child's health, morals, or mental development.
4. Work permit issued to child (one copy retained by issuing official; one copy sent to NMDWS).
5. Employer keeps the work permit on file at the place of employment.
6. Permit valid for one year; renewable.
7. Contact: NMDWS Child Labor Section, (505) 841-4400, or visit nearest America's Job Center NM.

Parent-employer exception (SB 175, 2007):

• No work permit required.
• No restrictions on age of child or time of employment (within §§ 50-6-1 through 50-6-3).
• Exception does NOT cover manufacturing, mining, or occupations declared hazardous or detrimental to health.
• Best practice: document the parent's ownership of the business and that work is non-hazardous.

VERIFY: https://www.nmlegis.gov/Sessions/07%20Regular/final/SB0175.html

Entertainment industry (any age under 18):

• A separate pre-authorization certificate from NMDWS must be obtained before employment begins (11.1.4 NMAC).
• Certificate is project-specific; valid one year or until project ends.
• Requires parent/guardian signature; includes child performer trust account (15% gross earnings).

VERIFY: https://www.dws.nm.gov/Child-Labor

5. Relevant Case Law / Administrative Guidance

NMSA 1978 § 50-6-2 (1944 AG Opinion cited in annotations):

This AG opinion pre-dates the 2007 amendment and applies to the general rule; the 2007 parent-employer exception supersedes it for parent-owned businesses.

NMSA 1978 § 50-6-2 case law (from Justia):

• Benson v. Export Equipment Corp., 1945-NMSC-044, 49 N.M. 356, 164 P.2d 380: Workers' Compensation Act covers adults and minors age 16+. The WCA provides an exclusive remedy for injuries to legally employed minors.
• Maynerich v. Little Bear Enterprises, Inc., 1971-NMCA-079: An illegally employed minor may pursue a common-law action against the employer for injuries. A work permit is the gateway to WCA exclusivity.

VERIFY: https://law.justia.com/codes/new-mexico/chapter-50/article-6/section-50-6-2/

NM Workers' Compensation Administration Employer Guidebook:

VERIFY: https://www.workerscomp.nm.gov/wp-content/uploads/2025/04/Employer_Guidebook.pdf

No directly on-point NM Supreme Court case on FMC income shifting was located as of June 2026. Federal authority controls on FICA/FUTA.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: New Mexico has a personal income tax with 2026 rates from 1.5% to 5.9% (top rate on income over $210,000 single), following the HB 252 (2024) bracket restructure effective 2025. New Mexico starts with federal adjusted gross income (FAGI) and then applies NM subtractions. New Mexico follows the federal standard deduction amounts for taxpayers who do not itemize (NM Form PIT-1). This means the child's NM taxable income generally mirrors federal taxable income more closely than states with independent standard deductions. VERIFY: https://www.openaccountants.com/skills/nm-income-tax (summary of NM PIT structure) VERIFY: https://www.tax.newmexico.gov/

Workers' Compensation (NMSA 1978 § 52-1-2): NM workers' comp applies to every private person, firm, or corporation engaged in business or trade within New Mexico employing 3 or more workers. The NM WCA Employer Guidebook confirms no family exemption for employees (though executive officers may elect out under separate rules). If the FMC employs fewer than 3 total workers, it may fall below the statutory threshold -- confirm with NM Workers' Compensation Administration. VERIFY: https://law.justia.com/codes/new-mexico/chapter-52/article-1/section-52-1-2/ VERIFY: https://www.workerscomp.nm.gov/wp-content/uploads/2025/04/Employer_Guidebook.pdf

Unemployment Insurance (VERIFIED): NMSA 1978 § 51-1-42(F)(12)(c) ("Definitions") explicitly excludes from the definition of "employment" the following service:

This is a VERIFIED exclusion from the primary source. Wages paid by a parent employer to a child under the age of majority (18 in New Mexico) in an NM sole proprietorship or two-parent partnership are NOT subject to New Mexico SUTA. This parallels the federal FUTA § 3306(c)(5) treatment.

Citation: NMSA 1978 § 51-1-42(F)(12)(c) (Laws 2003, ch. 47, § 12; 2005, ch. 3)

VERIFY: https://law.justia.com/codes/new-mexico/chapter-51/article-1/section-51-1-42/

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: The 2007 SB 175 parent-employer exemption from NM child labor rules applies when the child is "employed by a parent" -- this most clearly covers a sole proprietorship. For an FMC structured as an SMLLC, confirm with an NM attorney whether the LLC-as-employer still qualifies. For federal FICA/FUTA exemption, a sole proprietorship or two-parent partnership (not an LLC) is optimal.

1. Age-appropriate role mapping:
2. Under 14 (parent employer): any non-hazardous, non-manufacturing, non-mining occupation. Social media management, photography, filing, marketing support, customer service support. No permit needed.
3. 14-15 (parent employer): SB 175 exception -- no permit, no hour restrictions. Same role categories.
4. 16-17: no NM permit required; FLSA hazardous occupation restrictions apply.

1. Permit/certificate actions:
2. Parent employer: no work permit required under SB 175 exception (§§ 50-6-1 through 50-6-3).
3. Non-parent employer of 14-15 year old: obtain work permit from school/NMDWS.
4. Entertainment industry (any structure): obtain pre-authorization certificate from NMDWS before first day of work.
5. Document parent's ownership of the business in writing before the child begins work.

1. Payroll & documentation actions:
2. Pay at or above NM minimum wage (2026: $12.00/hr).
3. Issue W-2; withhold NM income tax.
4. Maintain detailed time records and job descriptions.
5. Workers' comp: if 3+ employees, coverage required; if fewer than 3 workers, confirm threshold with NM WCA.

1. State-specific filings / insurance:
2. Register with NMDWS as employer.
3. NM PIT-W withholding for minor's wages.
4. Child files NM PIT-1 (NM individual income tax return); NM follows federal standard deduction -- significant income-shifting benefit at state level.
5. Workers' comp: if applicable, register with NM WCA.
6. SUTA: NMSA 1978 § 51-1-42(F)(12)(c) family employment exclusion applies -- no NM SUTA owed on wages paid to child under age of majority by parent employer in a sole proprietorship or two-parent partnership. Note this exclusion on NM quarterly wage reports.

1. Red flags / do-not-do list:
2. Do NOT employ child in manufacturing, mining, or hazardous occupations under any circumstances -- the parent-employer exemption specifically excludes these.
3. Do NOT start entertainment industry work without the NMDWS pre-authorization certificate.
4. Do NOT assume fewer-than-3-employee threshold eliminates all obligations -- UI and FLSA may still apply.
5. Do NOT rely on the SB 175 parent-employer exception for an LLC without confirming with NM counsel.
6. Do NOT pay wages informally without payroll documentation -- this destroys the business deduction.

8. Sources (every URL used)

• [STATUTE] NMSA 1978 § 50-6-1: https://law.justia.com/codes/new-mexico/chapter-50/article-6/section-50-6-1/
• [STATUTE] NMSA 1978 § 50-6-2: https://law.justia.com/codes/new-mexico/chapter-50/article-6/section-50-6-2/
• [STATUTE] NMSA 1978 § 50-6-7: https://law.justia.com/codes/new-mexico/chapter-50/article-6/section-50-6-7/
• [STATUTE] NM SB 175 (2007) parent-employer exception: https://www.nmlegis.gov/Sessions/07%20Regular/final/SB0175.html
• [STATUTE] NMSA 1978 § 52-1-2 (workers' comp): https://law.justia.com/codes/new-mexico/chapter-52/article-1/section-52-1-2/
• [AGENCY GUIDANCE] NM DWS Child Labor page: https://www.dws.nm.gov/Child-Labor
• [AGENCY GUIDANCE] NM DWS NMAC 11.1.4 (wage and hour, child labor rules): https://www.dws.state.nm.us/Portals/0/DM/LaborRelations/11_1_4_NMAC_Proposed.pdf
• [AGENCY GUIDANCE] NM WCA Employer Guidebook: https://www.workerscomp.nm.gov/wp-content/uploads/2025/04/Employer_Guidebook.pdf
• [AGENCY GUIDANCE] NM DWS work permit information: https://www.dws.nm.gov/Child-Labor/category/correspondence-1
• [STATUTE] NMSA 1978 § 51-1-42(F)(12)(c) (UI family employment exclusion -- VERIFIED): https://law.justia.com/codes/new-mexico/chapter-51/article-1/section-51-1-42/
• [SECONDARY] NM income tax structure overview: https://www.openaccountants.com/skills/nm-income-tax

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

NY Labor Law § 130 ... Employment of minors under fourteen years of age

Citation: NY Labor Law § 130, NY Labor Law Chapter 31, Article 4 Official URL: https://www.nysenate.gov/legislation/laws/LAB/130 VERIFY: https://www.nysenate.gov/legislation/laws/LAB/130

NY Labor Law § 131 ... Employment of minors fourteen or fifteen years of age (parent exemption)

Citation: NY Labor Law § 131(3)(a)(6), NY Labor Law Chapter 31, Article 4 Official URL: https://www.nysenate.gov/legislation/laws/LAB/131 VERIFY: https://www.nysenate.gov/legislation/laws/LAB/131

KEY INTERPRETIVE NOTE: The § 131(3)(a)(6) exemption is narrow: "outdoor work not connected with or for any trade, business, or service." Work performed for a parent's Family Management Company (a trade or business) does NOT fall within this exemption. An employment certificate is required for FMC employment of 14–15 year olds.

NY Labor Law § 132 ... Employment of minors sixteen or seventeen years of age (parent exemption)

Citation: NY Labor Law § 132(3)(a)(6) Official URL: https://www.nysenate.gov/legislation/laws/LAB/132 VERIFY: https://www.nysenate.gov/legislation/laws/LAB/132

Same limitation applies: does not cover business employment.

NY Labor Law § 133 ... Prohibited employments

Citation: NY Labor Law § 133 Official URL: https://www.nysenate.gov/legislation/laws/LAB/133 VERIFY: https://www.nysenate.gov/legislation/laws/LAB/133

NY Labor Law § 135 ... Database for employment of minors; employer registration; employment certificates

Citation: NY Labor Law § 135 (effective version ... NB Effective May 9, 2027 supersedes prior text) Official URL: https://www.nysenate.gov/legislation/laws/LAB/135 VERIFY: https://www.nysenate.gov/legislation/laws/LAB/135

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14

• Generally prohibited from all trade, business, or service employment
• Limited exceptions: farm work for parent, farm stand/farmer's market assisting parent (§ 130(2)(d), (g))
• Permitted as child performer (§ 130(2)(a)) and child model (§ 130(2)(b)) under separate permits

14–15

• When school is in session: max 3 hrs/school day; max 8 hrs non-school day; max 18 hrs/week; no work before 7 a.m. or after 7 p.m. (§ 142)
• When school is not in session: max 8 hrs/day; max 40 hrs/week; no work before 7 a.m. or after 7 p.m. (extended to 9 p.m. June 21 through Labor Day) (§ 142)
• Factory work categorically prohibited (§ 133(1)(b))
• Cannot operate washing, grinding, cutting, slicing, pressing, or mixing machinery (§ 133(1)(c))

16–17

• When school is in session: max 4 hrs/day preceding school day; max 8 hrs on Fri/Sat/Sun/holiday; max 28 hrs/week; max 6 days/week; no work after 10 p.m. before school day (midnight with parental consent and school standing certificate); no work before 6 a.m. (§ 143)
• When school is not in session: max 8–10 hrs/day; max 48 hrs/week; max 6 days/week; no work after midnight or before 6 a.m. (§ 143)
• All § 133(2) prohibitions (construction, explosives, hoisting, etc.) apply to all ages

Citation for hours: NY Labor Law §§ 142, 143 Official URLs: https://www.nysenate.gov/legislation/laws/LAB/142 ; https://www.nysenate.gov/legislation/laws/LAB/143 VERIFY: https://www.nysenate.gov/legislation/laws/LAB/142 VERIFY: https://www.nysenate.gov/legislation/laws/LAB/143

4. Work Permit Step-by-Step (logistics)

As of the 2023 amendments to § 135 (effective May 9, 2027; prior database procedures phased in starting 2023):

1. Employer registers in the NY DOL statewide minor employment database before the minor begins work (§ 135(3))
2. Minor registers in the same database and completes application for an employment certificate (§ 135(5))
3. Certificate issued electronically by the NY DOL Commissioner through the database upon application by the minor (§ 135(6)(a))
4. Employer files the certificate (or maintains electronic access) at the place of employment before work begins (§ 135(4))
5. School officials may request revocation through the database for academic performance issues (§ 135(6)(b))

Prior system (still operative for certificates issued before full database transition): Certificate issued by school district official under NY Education Law Article 65, Part 1. Minor applies in person, submits proof of age, promise of employment, physical fitness certificate. Certificate mailed to employer.

Parent-owned business exemption from permit? NO. There is no exemption from the employment certificate requirement for parent-owned businesses. The § 131(3)(a)(6) and § 132(3)(a)(6) parent exemptions from permit are limited to outdoor non-trade/non-business work. An FMC or parent-owned business employing a minor in trade or service activities must obtain a certificate.

VERIFY: https://www.nysenate.gov/legislation/laws/LAB/135

5. Relevant Case Law / Administrative Guidance

No directly on-point New York state case law located as of June 29, 2026 addressing the specific combination of FMC income-shifting, family employment exemptions, and work permit requirements for parent-owned businesses.

NY DOL Guidance: The NY DOL "Wage Order" and "Minor Employment" guidance pages confirm that employment certificates are required for all minors employed in "any trade, business, or service." The outdoor/farm work exemptions for parental employment are narrow. See: https://www.labor.ny.gov/workerprotection/laborstandards/workprot/minors.shtm

VERIFY: https://www.labor.ny.gov/workerprotection/laborstandards/workprot/minors.shtm

Federal authority controls on FLSA parent exemption scope; NY does not have a conflicting state parallel.

6. FMC / Income-Shifting Interaction (state-specific notes)

FMC structure: A single-member LLC (SMLLC) owned by one parent and taxed as a disregarded entity is the common FMC structure. In NY, a minor employed by such an FMC:

• Must obtain an employment certificate (no parent-owned-business permit exemption)
• Cannot work in a factory or in any § 133(2) prohibited occupation
• Hours must comply with §§ 142–143

State Income Tax New York has a broad personal income tax (NY Tax Law Article 22). Key points for a minor employee:

• NY does NOT conform to the federal standard deduction. NY sets its own amounts.
• NY standard deduction (2026, most recent published amounts ... tax year 2025 figures carried forward; NY had not published separate 2026 amounts as of mid-2026): Single filer (not claimed as dependent): $8,000; Single (claimed as dependent on another return): $3,100 (NY Tax Law § 614; see also NY DTF form IT-201-I)
• For a minor claimed as a dependent on the parent's return, the standard deduction is only $3,100 for NY purposes, vs. the 2026 federal "greater of $1,350 or earned income + $450" rule (capped at the $16,100 single standard deduction). The minor may owe more NY tax than federal tax at lower earned income levels.
• NY starts from federal AGI (rolling conformity with modifications), then applies NY-specific additions/subtractions and the NY standard deduction.

Citations:

• NY Tax Law § 614 (standard deduction): https://law.justia.com/codes/new-york/tax/article-22/part-2/614/
• NY standard deduction amounts (most recent published; confirm the current-year DTF figure): https://www.tax.ny.gov/pit/file/standard_deductions.htm

VERIFY: https://www.tax.ny.gov/pit/file/standard_deductions.htm

Workers' Compensation NY Workers' Compensation Law (WCL) covers employees generally. No blanket exemption for family employees. A minor child employed by a parent's sole proprietorship or FMC must be covered by workers' compensation. Parents employing minor children must carry workers' comp coverage ... failure is a class E felony in NY.

Verified WCL family employee exclusion text (NY WCL § 2(4)):

New York Workers' Compensation Law § 2, subdivision 4 defines "Employee" and states in relevant part:

Key finding: The only family exclusion in NY WCL § 2(4) for a parent employing a minor child is limited to farmers. There is no general exclusion for a sole proprietor or SMLLC owner employing their minor child in a non-farm commercial business. A minor child employed by a parent in a non-farm FMC is a covered employee for NY workers' compensation purposes. The parent/employer must carry NY workers' compensation coverage. Failure to carry WC in NY is a class E felony.

VERIFY: https://www.nysenate.gov/legislation/laws/WKC/2 (official NY Senate Open Legislation, retrieved June 29, 2026).

State Unemployment Insurance (SUTA / NY UI) Under NY Labor Law § 511 and NY Unemployment Insurance Law, services performed by a child under 21 in the employ of a parent in a sole proprietorship are excluded from covered employment. Services by a minor child employed by a corporation (including S-corp) or multi-member LLC are likely covered. Verify exact citation with NY DOL.

Verified NY UI family exclusion text (NY Labor Law § 511, subdivision 7):

Additional related provision (NY Labor Law § 511, subdivision 14):

Key points: (1) NY Labor Law § 511(7) excludes from covered employment services by a child under 21 in the employ of the child's parent. (2) The text says "employer" without entity-type qualifier; however, this exclusion is conditioned on FUTA analog availability ... applicable to sole proprietorships and SMLLCs taxed as disregarded entities; not available for S-corps or C-corps. (3) For an SMLLC disregarded entity FMC, the child under 21 employed by a parent should be excluded from NY SUTA.

VERIFY: https://www.nysenate.gov/legislation/laws/LAB/511 (official NY Senate Open Legislation, retrieved June 29, 2026).

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: Use a parent-owned SMLLC (disregarded entity) or sole proprietorship as the FMC. Avoid S-corp or multi-member LLC structures if preserving FICA/FUTA/SUTA family exemptions is a priority. Confirm NY SUTA treatment with a NY employment tax counsel.

1. Age-appropriate role mapping:
2. Ages 12–13: farm stand/farmer's market assistance (with parental presence/consent); outdoor non-business chores only
3. Ages 14–15: office/admin tasks (not factory); social media, photography, modeling content, bookkeeping ... all require employment certificate and comply with § 142 hours
4. Ages 16–17: expanded hours; still no § 133(2) prohibited occupations; certificate required

1. Permit/certificate actions: Register employer and minor in the NY DOL statewide database. Minor applies for certificate electronically. Keep certificate on file at place of employment. No exemption applies to FMC employment.

1. Payroll & documentation: Run legitimate payroll; pay reasonable market wages for the tasks performed; document job descriptions, time records, and payment records. Federal kiddie tax rules apply to unearned income; earned income is taxed at the child's rate.

1. State-specific filings / insurance: File NY personal income tax return for the minor (IT-201) if income exceeds the filing threshold. Obtain workers' compensation coverage. Consider NY Paid Family Leave (PFL) obligations. File NYS-45 quarterly employer returns.

1. Red flags / "do not do this" list:
2. Do not employ a 14–15-year-old in any factory-connected work, even if parent-owned
3. Do not skip the employment certificate for FMC employment ... the outdoor-work exemption does not cover office/admin/creative work
4. Do not exceed hours limits in §§ 142–143
5. Do not use an S-corp or corp FMC and claim FICA exemption ... the exemption does not apply
6. Do not pay wages without proper payroll records; informal "allowances" are not wages

8. Sources (every URL used)

• [STATUTE] NY Labor Law § 130: https://www.nysenate.gov/legislation/laws/LAB/130
• [STATUTE] NY Labor Law § 131: https://www.nysenate.gov/legislation/laws/LAB/131
• [STATUTE] NY Labor Law § 132: https://www.nysenate.gov/legislation/laws/LAB/132
• [STATUTE] NY Labor Law § 133: https://www.nysenate.gov/legislation/laws/LAB/133
• [STATUTE] NY Labor Law § 135: https://www.nysenate.gov/legislation/laws/LAB/135
• [STATUTE] NY Labor Law § 142: https://www.nysenate.gov/legislation/laws/LAB/142
• [STATUTE] NY Labor Law § 143: https://www.nysenate.gov/legislation/laws/LAB/143
• [STATUTE] NY Tax Law § 614 (standard deduction): https://law.justia.com/codes/new-york/tax/article-22/part-2/614/
• [AGENCY GUIDANCE] NY DTF standard deduction amounts (2025, latest published): https://www.tax.ny.gov/pit/file/standard_deductions.htm
• [AGENCY GUIDANCE] NY DOL Minor Employment: https://www.labor.ny.gov/workerprotection/laborstandards/workprot/minors.shtm
• [SECONDARY] Article 4 section headings: https://www.nysenate.gov/legislation/laws/LAB/A4

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

G.S. 95-25.5(a) -- Certificate requirement:

Citation: G.S. 95-25.5(a) (1937, c. 317; 2024-41, s. 34)

VERIFY: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html

G.S. 95-25.5(a1) -- Nightwork restriction for enrolled students:

Citation: G.S. 95-25.5(a1)

VERIFY: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html

G.S. 95-25.5(b) -- Hazardous occupation prohibition:

Citation: G.S. 95-25.5(b)

VERIFY: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html

G.S. 95-25.5(c) -- Hours for 14-15 year olds:

Citation: G.S. 95-25.5(c)

VERIFY: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html

G.S. 95-25.5(d) -- Under-14 prohibition:

Citation: G.S. 95-25.5(d)

VERIFY: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html

G.S. 95-25.5(i) -- PARENT/GUARDIAN EXEMPTION (KEY PROVISION):

Citation: G.S. 95-25.5(i) (1991, c. 492, s. 2; 2001-312, s. 3; 2009-21, s. 2; 2021-82, s. 5)

VERIFY: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html

G.S. 95-25.5(g) -- Entertainment industry exemption:

Citation: G.S. 95-25.5(g)

VERIFY: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html

3. Hours / Prohibited Occupations for Minors (by age band)

Under 13 (including parent employer):

• Prohibited from all employment except newspaper distribution (12-13 years, outside school hours, max 3 hrs/day, no certificate needed).
• Parent-employer exemption (§ 95-25.5(i)) applies, but the under-13 is not a "youth" who can be lawfully employed by anyone except for the newspaper exception -- the parent exemption does not create a new hiring right for under-13.
• FLSA parental exemption permits parent to employ own child in non-agricultural work (except manufacturing, mining, hazardous) -- the federal floor allows it; NC has no broader state-law prohibition for parent-employing-own-child outside the NC statute's scope.

Ages 14-15:

• Hours as specified in § 95-25.5(c): 3 hrs/school day, 18 hrs/school week; 8 hrs/non-school day, 40 hrs/non-school week; 7 a.m.-7 p.m. (9 p.m. summer).
• Certificate required even for parent employer.
• Permitted occupations mirror FLSA 14-15 permitted list.
• Parent employer: all hour/occupation provisions of § 95-25.5 are waived EXCEPT certificate + hazardous + ABC restrictions.

Ages 16-17:

• No NC-specific hour restrictions (§ 95-25.5 has no hour limits for 16-17 beyond school-term nightwork).
• Nightwork restriction: 11 p.m.-5 a.m. during regular school term when school next day (§ 95-25.5(a1)); waivable with written approval of parent AND school principal.
• Certificate required even for parent employer.
• Federal FLSA HO restrictions (hazardous occupations, HO 1-17) apply.

Hazardous occupations: NC adopts all federal FLSA hazardous occupation orders (§ 95-25.5(b)). NC Commissioner may additionally declare state-specific occupations detrimental. The hazardous occupation prohibition applies even to youth employed by their parents (§ 95-25.5(i)(2) retains this).

4. Work Permit Step-by-Step (logistics)

NC Youth Employment Certificate -- all minors under 18, including parent-employer:

1. Certificate is issued by the NC Commissioner of Labor through the NC Department of Labor.
2. Apply online: NC DOL issues certificates electronically (yCerts system).
3. Required information: minor's name, age, employer's name/address, occupation.
4. There is no fee.
5. Parent employer must still obtain the certificate -- § 95-25.5(i)(1) explicitly retains the certificate requirement for parent-employer situations.
6. Certificate should be kept on file at the place of employment.
7. Contact: NC Department of Labor, Wage and Hour Division, (919) 707-7900.

VERIFY: https://www.labor.nc.gov/workplace-rights/youth-employment

Key distinction: Unlike California (which requires school-based Permit to Employ and Permit to Work), NC issues a single employer-side certificate from the Commissioner. It does not require school sign-off for general employment (though school approval is relevant for nightwork waivers under § 95-25.5(a1)).

5. Relevant Case Law / Administrative Guidance

G.S. 95-25.5 (legislative history note): The youth employment certificate requirement was enacted in 1937 and has been substantially amended through 2024. The 2024 amendment (2024-41, s. 34) is the most recent change.

NC Department of Labor Wage and Hour Division (official guidance): NC DOL publishes official child labor guidance. Contact for certificate applications: https://www.labor.nc.gov/workplace-rights/youth-employment

No directly on-point NC Court of Appeals or Supreme Court case on FMC-style minor income shifting was located as of June 2026. Federal authority controls on FICA/FUTA.

6. FMC / Income-Shifting Interaction (state-specific notes)

State Income Tax: North Carolina imposes a flat personal income tax. The 2026 NC rate is 3.99% (reduced from 4.25% in 2025 under phased reductions in S.L. 2023-134). The NC standard deduction for 2026 (unchanged from 2025) is:

• $12,750 (single)
• $25,500 (MFJ)

This is closer to the federal standard deduction than most states surveyed, making the income-shifting benefit at the state level more meaningful. A minor child earning $12,750 or less would owe no NC income tax (matching their NC standard deduction). NC does NOT fully conform to the federal standard deduction (which is $16,100 single for 2026), but the gap is smaller than in most other states in this survey. VERIFY: https://www.ncdor.gov/taxes-forms/individual-income-tax/filing-topics/north-carolina-standard-deduction-or-north-carolina-itemized-deductions

Workers' Compensation: North Carolina workers' comp applies to employers with 3 or more employees (G.S. 97-2). No general family exemption exists. A parent-owned FMC that employs 3 or more workers (including the minor child) must have workers' compensation insurance. If the FMC employs fewer than 3 workers, coverage is not mandatory but is advisable. VERIFY: https://www.ic.nc.gov/employers.html

Unemployment Insurance (RESOLVED -- federal incorporation): The current North Carolina UI employment definition is at G.S. 96-1(b)(12), which provides: "Employment. -- Defined in section 3306 of the Code [federal Internal Revenue Code], with the following additions and exclusions: [state-specific additions and exclusions]." The state-specific exclusions in G.S. 96-1(b)(12)(b) do NOT separately address family employment; however, NC incorporates the federal FUTA definition of "employment" from IRC § 3306, which at § 3306(c)(5) excludes from FUTA "service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of 21 in the employ of his father or mother." Because NC's definition of UI "employment" starts with the federal FUTA definition and adds only specific NC modifications (none of which re-include family employment), the federal family employment exclusion flows through into the NC SUTA definition by incorporation.

Historical note: Before the 2013 recodification of Chapter 96, the family employment exclusion was explicit in former G.S. 96-8(6)(g)(7): "Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of twenty-one in the employ of his father or mother." (See NC DES Interpretation No. 184.) The 2013 recodification (Session Laws 2013-2) replaced the standalone definitions article (former G.S. 96-8) with G.S. 96-1, which now incorporates federal FUTA definitions by reference. The substantive exclusion continues to apply.

Citation: G.S. 96-1(b)(12) (Session Laws 2013-2; amended 2015, 2016, 2017, 2023)

VERIFY: https://www.ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_96.html

VERIFY (former explicit statutory text confirming intent): https://www.des.nc.gov/interpretation-no-184/open

7. State Implementation Playbook (numbered, actionable)

1. Entity & ownership setup: G.S. 95-25.5(i) exempts youth "employed by their parent, guardian, or other person standing in loco parentis" -- the key question for an FMC LLC is whether the LLC qualifies as "their parent." A sole proprietorship or two-parent partnership most cleanly satisfies this. For an LLC, confirm interpretation with an NC-licensed attorney. The certificate is still required in any case.

1. Age-appropriate role mapping:
2. Under 14: NC statute (§ 95-25.5(d)) prohibits employment for 13 and under except newspaper distribution; the parent employer exemption (§ 95-25.5(i)) does not create new employment rights beyond those permitted by the statute. FLSA parental exemption operates independently at the federal level; document carefully.
3. 14-15 (parent employer): certificate required; hours/occupation restrictions in § 95-25.5(c) are WAIVED by § 95-25.5(i) for parent employer -- but cannot work in hazardous occupations. Hours: best practice is to follow § 95-25.5(c) limits even though technically waived.
4. 16-17: certificate required; no NC hour restrictions except school-term nightwork; avoid hazardous occupations.

1. Permit/certificate actions:
2. Obtain NC youth employment certificate from NC DOL Commissioner before work begins.
3. This is required even for parent-owned businesses (§ 95-25.5(i)(1)).
4. Apply online via NC DOL.
5. No fee; keep certificate on file at place of employment.
6. For nightwork by 16-17 year old enrolled students: also obtain written approval from parent AND school principal (§ 95-25.5(a1)).

1. Payroll & documentation actions:
2. Pay at or above NC minimum wage (2026: $7.25/hr -- NC minimum wage equals federal; NC has not enacted a higher state minimum).
3. Issue W-2; withhold NC state income tax.
4. Maintain time records, written job descriptions, pay stubs.
5. Workers' comp: if 3+ employees, coverage required.

1. State-specific filings / insurance:
2. Register with NC Department of Revenue as employer (NC withholding account).
3. File NC A-1 quarterly withholding returns.
4. Child files NC D-400; NC standard deduction ($12,750 single for 2026) -- minor earning $12,750 or less owes no NC income tax.
5. Confirm UI with NC Division of Employment Security; the family employment exclusion (incorporated from IRC § 3306(c)(5) via G.S. 96-1(b)(12)) should eliminate SUTA on wages paid to child under 21 by parent employer in a sole proprietorship or two-parent partnership.
6. Workers' comp: contact NC Industrial Commission if 3+ employees.

1. Red flags / do-not-do list:
2. Do NOT skip the youth employment certificate -- it is required even for parent-employer situations. § 95-25.5(i)(1) explicitly retains this requirement.
3. Do NOT permit a minor to work in any FLSA hazardous occupation -- the § 95-25.5(i)(2) carve-out retains the hazardous occupation prohibition even for parent employers.
4. Do NOT allow under-18 enrolled students to work 11 p.m.-5 a.m. during school terms without written parental AND principal approval (§ 95-25.5(a1)).
5. Do NOT confuse the 3-employee workers' comp threshold -- confirm whether the FMC has enough employees to trigger coverage.
6. Do NOT assume NC conforms to the federal standard deduction -- it does not; the NC standard deduction ($12,750) is meaningful but below federal.

8. Sources (every URL used)

• [STATUTE] G.S. 95-25.5 (full text): https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html
• [STATUTE] G.S. 95-25.5(a) through 95-25.5(n): https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.5.html
• [AGENCY GUIDANCE] NC Department of Labor Youth Employment: https://www.labor.nc.gov/workplace-rights/youth-employment
• [AGENCY GUIDANCE] NC DOR Standard Deduction: https://www.ncdor.gov/taxes-forms/individual-income-tax/filing-topics/north-carolina-standard-deduction-or-north-carolina-itemized-deductions
• [AGENCY GUIDANCE] NC Industrial Commission (workers' comp): https://www.ic.nc.gov/employers.html
• [STATUTE] G.S. 96-1(b)(12) (UI employment definition incorporating federal FUTA § 3306 by reference): https://www.ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_96.html
• [AGENCY GUIDANCE] NC DES Interpretation No. 184 (family employment exclusion interpretation -- pre-2013 recodification): https://www.des.nc.gov/interpretation-no-184/open
• [SECONDARY] NC standard deduction amounts 2026: https://ncpaycalculator.com/resources/nc-standard-deduction-2026

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

NDCC § 34-07-01 ... Employment of minor under fourteen years of age prohibited

Citation: NDCC § 34-07-01

Official URL: https://www.legis.nd.gov/cencode/t34c07.pdf

VERIFY: https://www.legis.nd.gov/cencode/t34c07.pdf

NDCC § 34-07-02 ... Certificate of employment required (with family/self-employment exemption)

Citation: NDCC § 34-07-02

Official URL: https://www.legis.nd.gov/cencode/t34c07.pdf

VERIFY: https://www.legis.nd.gov/cencode/t34c07.pdf

NDCC § 34-07-05 ... Who may issue certificates / self-employment exemption

Citation: NDCC § 34-07-05 (emphasis added)

Official URL: https://www.legis.nd.gov/cencode/t34c07.pdf

VERIFY: https://www.legis.nd.gov/cencode/t34c07.pdf

NDCC § 34-07-15 ... Maximum hours of labor for minors fourteen or fifteen years of age

Citation: NDCC § 34-07-15

Official URL: https://www.legis.nd.gov/cencode/t34c07.pdf

VERIFY: https://www.legis.nd.gov/cencode/t34c07.pdf

NDCC § 34-07-16 ... Prohibited employments and occupations (14–15 year-olds)

Citation: NDCC § 34-07-16

Official URL: https://www.legis.nd.gov/cencode/t34c07.pdf

VERIFY: https://www.legis.nd.gov/cencode/t34c07.pdf

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14:

• General prohibition: no employment in any occupation except farm labor, domestic service, or employment under direct supervision of parent/guardian/grandparent (§ 34-07-01)
• Even under parental exemption: no work during public school session hours
• All prohibitions in § 34-07-16 apply (hazardous occupations)
• No employment certificate required under direct parental supervision (§ 34-07-02 by implication; § 34-07-05 provides formal self-employment/family exemption from certificate)

14–15 years:

• Hours: 7:00 a.m. to 7:00 p.m. (school days); 7:00 a.m. to 9:00 p.m. (June 1 through Labor Day)
• Max 3 hours/schoolday; 18 hours/schoolweek
• Max 8 hours/nonschoolday; 40 hours/nonschoolweek
• All § 34-07-16 prohibited occupations apply
• Employment certificate required for non-family employment; parental supervision exemption applies (§ 34-07-02)

16–17 years:

• No specific North Dakota hour restrictions found for 16–17 (not addressed in § 34-07-15 or § 34-07-16)
• FLSA hazardous occupation orders (HO 1–17) apply for under-18
• § 34-07-17.2 allows minors at least 16 to work in hazardous occupations if enrolled in a registered apprenticeship program or approved career and technical education program with parental signature

4. Work Permit Step-by-Step (logistics)

For a minor 14–15 working for a non-family employer:

1. The minor's parent or guardian issues the certificate in writing (§ 34-07-05 ... parent/guardian is the issuer, not a school)
2. Certificate must state: date of birth, description of job duties, and be signed by the minor's parent or guardian and the employer (§ 34-07-12)
3. A completed copy must be filed with the North Dakota Department of Labor and Human Rights, the employer, and the school principal within 10 days (§ 34-07-05)
4. The employer must keep the certificate on file, accessible to school principals and the labor commissioner (§ 34-07-02)
5. During school term, the certificate may only permit work if the minor maintains passing grades and is not guilty of truancy (§ 34-07-11)

Parent-owned business / FMC exemptions:

• Under 14 with parental direct supervision (§ 34-07-01): No certificate needed; work is permitted as an exception to the general prohibition, but school hours are blocked.
• 14–15 under direct supervision of parent or guardian (§ 34-07-02): No employment certificate required ... the statute expressly carves out "employment of, and under the direct supervision of, the minor's parent or guardian."
• Self-employment exemption (§ 34-07-05): No employment certificate required for any minor entering their own employment or the employment of a firm/LLC of which they are a member, officer, or manager. If the FMC structure treats the child as a member of the LLC, this exemption applies.

VERIFY: https://www.legis.nd.gov/cencode/t34c07.pdf

5. Relevant Case Law / Administrative Guidance

North Dakota WSI ... children under 22 exempt from mandatory coverage: Per North Dakota WSI (official guidance): "Children of the employer(s) who are under the age of 22 are not required to be covered. (NOTE: Children aged 22 and older who are receiving compensation for employment must be reported as an employee.)" Employers may elect to cover under-22 children on optional coverage at a premium based on actual wages. Source: North Dakota WSI Employer Guide VERIFY: https://www.workforcesafety.com/employers/insurance-coverage-information/coverage-types

NDCC § 65-01-02(16)(a)(4) ... Minors as employees under WSI: "Minors, whether lawfully or unlawfully employed" are included in the definition of employee for WSI purposes. The exception for children under 22 of the employer is an elective coverage exception, not a categorical exclusion. VERIFY: https://codes.findlaw.com/nd/title-65-workforce-safety-and-insurance/nd-cent-code-sect-65-01-02/

No directly on-point North Dakota case law or AG opinion located as of June 29, 2026 specifically addressing the § 34-07-01 or § 34-07-05 family/self-employment exemptions in an FMC income-shifting context. Federal FLSA authority controls for child labor floor purposes.

6. FMC / Income-Shifting Interaction (state-specific notes)

North Dakota income tax: North Dakota has a graduated individual income tax with relatively low rates. North Dakota taxable income is based on federal taxable income as the starting point (NDCC § 57-38-01: "the federal definition of taxable income as the starting point"). North Dakota conforms to the federal standard deduction through this mechanism: the starting point is federal taxable income, which already incorporates the federal standard deduction. Specific adjustments may be made per NDCC ch. 57-38.

Key consequence for income-shifting: A child's wages from an ND FMC reduce federal taxable income by the federal standard deduction; North Dakota taxable income starts from that same federal taxable income figure (with limited ND adjustments). North Dakota's top individual income tax rate is 2.50% (2026), with a 0% bracket for lower incomes and a 1.95% middle bracket (structure enacted in the 2023 reforms, S.B. 2136). Most taxpayers with modest earned income fall in the 0% or 1.95% bracket.

VERIFY North Dakota individual income tax rates: https://www.legis.nd.gov/cencode/t57c38.pdf

Workers' comp (North Dakota WSI ... monopoly fund): North Dakota's WSI is a mandatory state fund with no private insurance alternative. All employers must obtain WSI coverage for covered employees. The key exemption for FMC purposes: the employer's children under age 22 are not mandatory covered employees. Optional coverage can be purchased. This is a significant benefit: wages paid to a child under 22 do not trigger mandatory WSI premium obligations.

Source: https://www.workforcesafety.com/employers/insurance-coverage-information/coverage-types

VERIFY: https://www.legis.nd.gov/cencode/t65c01.pdf (NDCC § 65-01-02)

North Dakota SUTA:

Citation: NDCC § 52-01-01 (employment exclusion ... NOTE: correct section is § 52-01-01, not § 52-04-01; section 52-04-01 governs employer registration, not definitions)

Official URL: https://codes.findlaw.com/nd/title-52-social-security/nd-cent-code-sect-52-01-01/

VERIFY: https://codes.findlaw.com/nd/title-52-social-security/nd-cent-code-sect-52-01-01/

Note: Job Service ND materials confirm: "Services performed for a son, daughter, or spouse, or services performed by a child under age 18 for a parent while residing in the parent's home. This exclusion does not apply if it is a corporation."

7. State Implementation Playbook

1. Entity and ownership setup: For WSI purposes, a child under 22 employed by a parent is exempt from mandatory WSI coverage regardless of entity type (sole prop, LLC, etc.). This is more permissive than Iowa or Missouri. Consider making the child a member/officer of the FMC LLC (§ 34-07-05 self-employment certificate exemption also applies).

1. Age-appropriate role mapping:
2. Under 14 with direct parental supervision: Administrative tasks, light filing, holding products for photos ... permitted under § 34-07-01 family exception. No school-session hours. All § 34-07-16 hazardous occupation restrictions apply.
3. 14–15 under direct parental supervision: Social media content, photography, bookkeeping support, data entry. Max 3 hours/schoolday, 18 hours/schoolweek; 8 hours/nonschoolday, 40 hours/nonschoolweek. No § 34-07-16 prohibited occupations (notably includes cooking, baking, grilling, frying ... relevant if FMC involves food businesses).
4. 16–17: Broader administrative, marketing, bookkeeping roles. No North Dakota hour limits. FLSA HO orders apply for under-18.

1. Permit and certificate actions:
2. Under 14 under direct parental supervision: No certificate required.
3. 14–15 under direct parental supervision (§ 34-07-02): No certificate required ... direct parental supervision is a statutory exception.
4. 14–15 if treated as LLC member/officer: No certificate required (§ 34-07-05 self-employment exception).
5. If a certificate is issued voluntarily or for a non-family employer: Parent/guardian issues it in writing; file with ND Department of Labor and Human Rights and employer within 10 days.

1. Payroll and documentation:
2. Pay at market rate; issue W-2 annually
3. North Dakota income tax withholding applies (ND has state withholding)
4. Maintain timesheets and work product records
5. Document the direct supervision arrangement if relying on the § 34-07-01 or § 34-07-02 parental exemption

1. State-specific filings/insurance:
2. North Dakota WSI: Children under 22 of the employer are not mandatory covered. Consider optional WSI coverage for additional protection.
3. SUTA: Services by a minor for their parent while dwelling in the parent's household are excluded per NDCC § 52-01-01; does not apply to corporations. Confirm dwelling requirement is met.
4. North Dakota income tax withholding: required for wages above ND withholding thresholds.

1. Red flags / do not do this:
2. Do not employ a child under 14 during public school session hours, even under direct parental supervision (§ 34-07-01 prohibition on school-session work applies even to the family exception).
3. Do not let a 14–15 year-old perform § 34-07-16 prohibited occupations (including cooking, baking, or grilling) even in a family FMC context ... § 34-07-01 and § 34-07-02 only exempt the certificate requirement; the occupation prohibitions of § 34-07-16 still apply.
4. Do not assume the WSI age-22 exemption eliminates all workers' comp obligations ... injuries must still be managed and the employer may face direct liability if optional coverage is not purchased.
5. Do not omit North Dakota income tax withholding.

8. Sources

• [STATUTE] NDCC Title 34 Chapter 7 (full child labor chapter) ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 34-07-01 ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 34-07-02 ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 34-07-05 ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 34-07-12 ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 34-07-15 ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 34-07-16 ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 34-07-17.2 ... https://www.legis.nd.gov/cencode/t34c07.pdf
• [STATUTE] NDCC § 57-38-01 (income tax starting point) ... https://www.legis.nd.gov/cencode/t57c38.pdf
• [STATUTE] NDCC Title 65 (WSI) ... https://www.legis.nd.gov/cencode/t65c01.pdf
• [AGENCY GUIDANCE] North Dakota WSI Coverage Types ... https://www.workforcesafety.com/employers/insurance-coverage-information/coverage-types
• [AGENCY GUIDANCE] ND WSI Employer Guide ... https://www.library.nd.gov/statedocs/WorkforceSafetyInsurance/EmployersGuideWC20090817.pdf
• [SECONDARY] FindLaw NDCC § 65-01-02 ... https://codes.findlaw.com/nd/title-65-workforce-safety-and-insurance/nd-cent-code-sect-65-01-02/

1. Snapshot Box

2. State Child Labor Statutory Framework (with exact quotes)

Ohio Revised Code Chapter 4109 ... Employment of Minors Official URL: https://codes.ohio.gov/ohio-revised-code/chapter-4109

ORC §4109.06(A)(5) ... Family/Parent-Employer Exemption

Citation: Ohio Revised Code §4109.06(A)(5)

VERIFY: https://codes.ohio.gov/ohio-revised-code/chapter-4109

ORC §4109.02 ... Age and Schooling Certificate (Work Permit)

Citation: Ohio Revised Code §4109.02

VERIFY: https://codes.ohio.gov/ohio-revised-code/section-4109.02

ORC §4109.07 ... Hours Restrictions

Citation: Ohio Revised Code §4109.07

VERIFY: https://codes.ohio.gov/ohio-revised-code/chapter-4109

ORC §4109.05(A) ... Hazardous Occupations

Citation: Ohio Revised Code §4109.05

VERIFY: https://codes.ohio.gov/ohio-revised-code/chapter-4109

3. Hours / Prohibited Occupations for Minors (by age band)

Under 14 (in family-business context): The chapter does not apply to minors employed by parents under §4109.06(A)(5), provided the occupation is not prohibited by rule under §4109.05. In practice: a child under 14 employed by a parent in office/admin, marketing, or similar light work (not manufacturing, mining, or declared hazardous) is outside the Ohio child labor chapter's coverage. Hazardous occupation rules still apply because §4109.06(A)(5) carves out only "occupations other than occupations prohibited by rule."

Ages 14–15:

• During school: no work during school hours; max 3 hrs/school day; max 18 hrs/school week
• Summer/non-school: max 8 hrs/day; max 40 hrs/week
• Time: 7 a.m.–7 p.m. (extends to 9 p.m. June 1 through September 1 and holiday periods of 5+ days)
• In a parent-employment scenario: §4109.06(A)(5) exempts these minors from the chapter; FLSA remains the floor

Ages 16–17:

• May not work before 7 a.m. on school days (or before 6 a.m. if not employed after 8 p.m. the prior night)
• May not work after 11 p.m. the night before a school day
• No general weekly hour cap for 16–17 under state law
• In a parent-employment scenario: §4109.06(A)(5) exempts from chapter; FLSA floor applies

4. Work Permit Step-by-Step (logistics)

Ohio uses "age and schooling certificates" for minors of compulsory school age (generally under 18 still in school).

Standard procedure (for employer who is NOT the parent):

1. Minor obtains an age and schooling certificate from the superintendent of schools (or chief administrative officer) of the school district where the minor is enrolled.
2. The superintendent verifies age (birth certificate or equivalent) and that employment is permissible.
3. Certificate is presented to employer before work begins.
4. Certificate is conclusive evidence of age and right to employ.

Parent-employer scenario: Under ORC §4109.06(A)(5), "this chapter does not apply" to minors employed by their parents in non-prohibited occupations. No age and schooling certificate is required. The FMC must be owned entirely by the parent(s) to rely on this exemption ... employment by a corporation or multi-owner entity forecloses the exemption.

Practical documentation (even without a state requirement):

• Maintain a written employment agreement describing role, pay rate, and tasks
• Keep contemporaneous time records
• Issue a W-2; withhold federal income tax