Indiana Labor Law: The New Youth Employment System (YES)

The Indiana Department of Labor is committed to supporting both employers and employees in Hoosier workplaces to promote health and safety standards. The department dedicates its many resources to guide employers and employees on rules and regulations to ensure adherence to every Indiana labor law.

On May 4, 2021, the department announced its new Youth Employment System (YES) targeting Hoosier employers which will be effective from July 1st to streamline the Indiana youth employment. The system will guide employers to enforce a new youth employment law.

The department published an update of the requirements expected from employers on the hiring of minor employees.

Generally, as mandated by the Indiana Youth Employment law, employers in each and every location who employ five or more minor employees—under age 18— should have them listed in the new YES registry.

The Key Highlights of the Announcement Are as Follows:

  • The new Indiana labor law is part of the amendment of the Indiana Code 22-2-18.1-26 which was enacted during the 2020 state legislative session. It also authorized the implementation of the YES registry and setting its effective date by July 1, 2021.
  • Michael Myers, the director of DOL’s Bureau of Youth Employment mentioned that employers would be able to establish accounts and orient themselves on the new system by July 1st.
  • While before, Indiana employers had to issue work permits to minor employees, they will now have to closely monitor and report on youth employed from schools.
  • Under the new requirement, employers will need to register employment details of minor employees such as name and age as well as their corporate and individual location information.
  • In addition, the new law covers the termination process which requires the employer to remove the minor employee’s information from the YES registry ceasing to be an active employee.
  • The labor department also gives a fair warning that employers need to have complied with the new registration requirements or risk incurring a penalty of up to $400 per infraction.
  • A key reminder to employers is that the new law will still uphold Indiana’s labor laws on work hours, health and safety standards for teens at the workplace.

Main Takeaway 

From the first point of engaging a minor employee, every employer needs to register as a youth employer to attain the criteria of the new system.

Formally, the Fair Labor Standards Act (FLSA) enforces requirements such as wage, safety, and work hours governing minor workers. In particular, it covers child labor laws that promote the safety, health, and well-being of youth employees.

The new YES requirements resonate with the mandates of the U.S Department of Labor in delegating employers to uphold the health and safety requirements of minor employees by creating a conducive work environment.

Noticeably, the state labor department removes the key responsibilities of issuing work permits and monitoring and reporting on minor employees from schools and transferring them to employers.

Today’s modern employers face the imminent challenge of keeping up with the ever-evolving labor legislation. They not only have to ensure keeping the laws in mind when undertaking recruiting processes, but they also have to deal with the changing face of employee profile.

Minor employees bring with them the complexity of violating child labor laws which can attract stringent penalties. In Indiana State, the labor department will be keeping caps on employers once the new system goes live on the set date.

What’s Next? 

The Indiana Labor Department plays an essential role in availing its resources to guide and educate employers and employees. However, it can be burdensome to implement the constant updates of laws and regulations. How about working alongside verified experts to proactively align your business with this new requirement?  Contact ASAP Payroll today.

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