Federal family-business carve-out for minors

What the federal family-business exemption covers

Federal FLSA exempts minors employed by their parent (or a person standing in place of the parent) in a non-hazardous, non-manufacturing, non-mining occupation. The exemption removes the general 14-year minimum age and the standard hour caps that apply to 14- and 15-year-olds — but only when the business is wholly owned by the parent.

Minimum age — non-hazardous work for parent's business

No federal minimum age

Hour caps — work for parent's business

No federal cap (hour limits at 14-15 do not apply)

Hazardous occupations (HO-1 to HO-17)

STILL apply — exemption does NOT waive hazardous-occupation rules

Manufacturing or mining

Exemption does NOT apply — minor must be 16+ regardless

Note: The exemption applies only when the parent (or someone standing in place of the parent) is the sole owner of the business. Partnerships, corporations with non-parent shareholders, and franchises where a parent is one of multiple owners do NOT qualify — federal rules apply in full.

Citation

29 USC § 213(c)(1)(C); 29 CFR § 570.123 (work by parents employing their own children)

What does NOT qualify as a family business

The exemption is narrower than "my parent works there." The parent must be the actual employer and sole owner of the business entity. Partnerships, corporations, LLCs with multiple owners, and franchise arrangements with corporate involvement break the exemption.

Parent owns 50% of a partnership / LLC

Does NOT qualify — federal rules apply

Parent is corporate officer but business is owned by a corp

Does NOT qualify — corp is the employer, not the parent

Parent is a franchisee under a national brand

Does NOT qualify (franchisor is generally the employer of record)

Parent works at the business but doesn't own it

Does NOT qualify — minor working with parent ≠ working for parent

Step-parent or guardian who is the legal in-loco-parentis

DOES qualify (counts as "standing in place of parent")

Note: Courts have read "wholly owned by the parent" strictly. If you're not sure whether your ownership structure qualifies, the safe default is to assume general FLSA rules apply.

Citation

29 CFR § 570.123(a); WHD Field Operations Handbook § 33d04

Hazardous-occupation rules still apply

The family-business exemption only waives the general minimum-age and hour-cap rules. The 17 federal Hazardous Occupations Orders (HO-1 through HO-17) are not waived — a minor under 18 still cannot operate a power-driven meat slicer, work on a roof, drive a forklift, etc., even when working for a parent's business.

HO-1 to HO-17 — minimum age

18+ (or 16+ for HO-2 limited circumstances) regardless of parent ownership

Operating power-driven bakery machines (HO-11) in family bakery

Prohibited under 18

Operating circular saws / power tools (HO-14) in family workshop

Prohibited under 18

Roofing on family construction job (HO-16)

Prohibited under 18

Note: The narrow Agricultural HO exemption for parent-owned farms (29 USC § 213(c)(1)(A)) is a SEPARATE provision and does NOT extend to non-agricultural family businesses. See /federal/agriculture for the parent-owned-farm carve-out, which DOES waive the agricultural HOs.

Citation

29 CFR § 570.123(b); 29 CFR Part 570 Subpart E (the 17 HOs)

Manufacturing and mining exclusions

Even if the parent owns the business, minors under 16 cannot work in manufacturing, mining, or processing — regardless of the family connection. 16- and 17-year-olds can work in manufacturing for a parent's business but still cannot perform any HO-listed task.

Manufacturing, mining, or processing — under 16

Prohibited (even for parent's wholly-owned business)

Manufacturing for parent's wholly-owned business — 16 and 17

Permitted in non-HO tasks only

Office / clerical / sales work at parent's business

No federal age floor

Light retail / food-service tasks at parent's wholly-owned shop

No federal age floor (still subject to state law)

Citation

29 USC § 213(c)(1)(C); 29 CFR § 570.123(a)

State law may impose stricter rules

Section 218(a) of the FLSA says the stricter standard governs. Many states extend their general age-and-hour rules to minors working for a parent's business, even though federal law exempts them. Always check the state-page rules: if your state imposes a minimum age or hour cap on family-business work, federal exemption does not override it.

Federal rule (FLSA)

Exempt — no minimum age, no hour cap (subject to HOs)

States that follow federal exemption fully

Most states (federal floor binds when state is silent)

States with stricter family-business rules

A minority — verify per state via the state page

Conflict resolution

Stricter rule wins — federal exemption does NOT override stricter state law

Note: Practical example: California requires a work permit for ALL minors under 18, including those working for a parent's business in non-hazardous work. The federal family-business exemption does not override California's permit requirement.

Citation

29 USC § 218(a) (no preemption of stricter state child-labor law)

What to document

There is no federal form for the family-business exemption — but in an audit, the DOL will ask the parent to demonstrate sole ownership. Parents employing their own minor children should keep documentation in case of inspection.

Business ownership documentation

Sole-proprietorship registration, EIN, or partnership/LLC operating agreement showing 100% parent ownership

Proof of parent-child relationship

Birth certificate or court guardianship order

Time records

Recommended even when hour caps don't apply (helps with wage-and-hour audits)

State work permit

Required if the state demands one for all minors (e.g. CA, NY) — federal exemption does not waive it

Citation

29 CFR § 516 (recordkeeping requirements apply to all employers)