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: Feb 5, 2024
BILL NUMBER: SB 146 BILL AMENDED: Feb 5, 2024
SUBJECT: Youth Employment.
FIRST AUTHOR: Sen. Rogers BILL STATUS: 2
nd
Reading - 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, 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.
The bill provides that a civil penalty for a violation of certain provisions regarding the employment of minors
may not be assessed for a violation of 10 minutes or less.
Effective Date: (Amended) Upon passage; July 1, 2024.
Explanation of State Expenditures: 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
SB 146 1 laws are paid from the Labor Education and Youth Employment Fund.
(Revised) Additional Information - 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: (Revised) The bill would not allow the DOL to collect penalties for
violations of ten minutes or less, which could result in a reduction in revenue to the Labor Education and
Youth Employment Fund from penalties collected from employers who are cited for work hour violations
under Indiana’s child labor laws. FY 2023, the fund received $427,825 in revenue from penalty collections.
The fund is used to pay the salary of inspectors to enforce child labor laws, to develop and maintain a
database of employers who hire young people, and to educate employers about child labor laws.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Labor.
Local Agencies Affected:
Information Sources: Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2023; 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