LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6693 NOTE PREPARED: Jan 25, 2024 BILL NUMBER: SB 146 BILL AMENDED: Jan 25, 2024 SUBJECT: Youth Employment. FIRST AUTHOR: Sen. Rogers BILL STATUS: CR Adopted - 1 st House FIRST SPONSOR: FUNDS AFFECTED: GENERAL IMPACT: State XDEDICATED FEDERAL Summary of Legislation: (Amended) The bill allows a person who is at least 18 years of age to ring up a sale of alcoholic beverages in the course of the person's employment. It allows a waiter, waitress, or server who is at least 18 years of age to serve alcoholic beverages in a dining room of a restaurant or hotel under certain conditions. It also provides an exemption from the law regarding employment of minors for a legal entity in which a parent of the employed minor, or a person standing in place of the parent, has an ownership interest. (Under current law, the exemption applies to a legal entity whose ownership is limited solely to the minor's parents or persons standing in place of the minor's parents.) The bill provides that a minor who is at least 14 years of age and less than 16 years of age may work: (1) until 9 p.m. if the minor's parent provides written consent for the minor to work later than 7 p.m.; and (2) until 11 p.m. if: (A) the minor is not required to attend school the next day; and (B) the minor's parent provides written consent for the minor to work later than 9 p.m. The bill provides, for purposes of the reporting requirement applicable to an employer that employs a specified number of minors, that: (1) a minor's date of hire is the first date on which the minor performs work for the employer; and (2) an employer must report any new or changed information not later than the fifteenth and last business days of each month. Effective Date: July 1, 2024. SB 146 1 Explanation of State Expenditures: (Revised) The Department of Labor’s Bureau of Youth Employment educates employers about child labor laws and would have increased workload to inform employers about the changes to Indiana child labor laws. The Department of Labor would also have additional workload to adopt rules and make changes to the reported hiring date as required under the bill. Expenses for enforcing child labor laws are paid from the Labor Education and Youth Employment Fund. (Revised) Additional Information - The bill allows minors who are 14 or 15 to work longer than is allowed and during hours which are not allowed under federal regulations for child labor law. The federal Fair Labor Standards Act allows children of any age to work for businesses solely owned by their parents or persons standing in place of their parents. In cases where federal law is more protective than state law, federal law still applies. Explanation of State Revenues: Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Department of Labor. Local Agencies Affected: Information Sources: U.S. Department of Labor. FLSA - Child Labor Rules Advisor. https://webapps.dol.gov/elaws/whd/flsa/cl/exemptions.asp ; U.S. Department of Labor. (2016, December). Fact Sheet #43: Child Labor Provisions of the Fair Labor Standards Act (FLSA) for Nonagricultural Occupations. https://www.dol.gov/agencies/whd/fact-sheets/43-child-labor-non-agriculture Fiscal Analyst: Camille Tesch, 317-232-5293. SB 146 2