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AZ · family-business carve-out for minor workers

Arizona family-business carve-out for minor workers

Federal FLSA § 213(c)(1)(C) exempts a minor working in a parent-owned, non-hazardous, non-manufacturing, non-mining business from the general 14-year minimum age and the standard hour caps for 14- and 15-year- olds. Arizona broadens that carve-out, and whichever rule is stricter binds the employer (FLSA § 218(a)). This page covers how Arizona treats parent-owned businesses for minor workers: which family relationships qualify, whether a state work permit is still required, whether state hour caps still apply, how state hazardous-occupations prohibitions interact with the federal HO-1 to HO-17 list, and the exact state-code citation.

Quick facts

Federal carve-out treatment
Broadened by state
State work permit required?
No
State hour caps apply?
Waived in parent-owned biz
State hazardous prohibitions
Apply
State statute
A.R.S. § 23-233 (exemptions, including broad family-relations exemption)
Last verified

Arizona vs the federal § 213(c)(1)(C) carve-out

Each row compares Arizona's treatment of parent-owned businesses to the federal exemption under 29 USC § 213(c)(1)(C) and 29 CFR § 570.123. When the state is stricter, the state rule binds the employer; when the state is broader or silent, the federal floor still applies. Federal hazardous orders HO-1 through HO-17 always apply regardless of state law (the federal exemption never reaches mining, manufacturing, or HO-listed work).

Arizona family-business carve-out compared to the federal § 213(c)(1)(C) exemption.
DimensionFederal floorArizonaDelta
Recognition of carve-outParent or in loco parentis, non-hazardous, non-mfgBroadened by stateBroader than FLSA
State work permit requiredNot required in parent-owned bizNot requiredMatches FLSA
State hour caps in parent-owned bizWaived (no daily/weekly cap)WaivedMatches FLSA
Hazardous-occupations prohibitionsFederal HO-1 to HO-17 always applyState HOs also applyStricter than FLSA

Which family relationships qualify in Arizona

Arizona's family exemption extends well beyond the federal parent-only language: A.R.S. § 23-233 exempts minors employed by a parent, grandparent, sibling, aunt, uncle, first cousin, or stepparent who owns at least 10% of the business and is actively engaged in daily operations (provided the minor is not 15 or younger employed in manufacturing or mining). Arizona is one of the broadest family-business carve-outs in the country.

How Arizona actually treats parent-owned businesses

Arizona's youth-employment statute at A.R.S. § 23-233 lists a substantially broader family carve-out than the federal floor. The exemption applies when (a) the qualifying relative owns at least 10% of the business, (b) the relative is actively engaged in daily operations, AND (c) the minor is not 15 or younger working in manufacturing or mining. For a 14-year-old working at a grandparent-owned coffee shop, an aunt-owned retail store, or a stepparent-owned service business in Arizona, no state work-permit is required (Arizona generally does not require state work permits for any minor employment regardless), no state hour caps apply under § 23-233's exemption, and no state time-of-day restrictions apply. Federal hazardous orders HO-1 through HO-17 always apply, as do Arizona's state-specific hazardous prohibitions for agricultural work under § 23-241 — the exemption never reaches mining or manufacturing for minors 15 or younger, or any HO-listed occupation.

Citation

A.R.S. § 23-233 (exemptions, including broad family-relations exemption)

Where to verify Arizona's family-business treatment

Family-business carve-outs are interpreted by state labor agencies and can shift after legislative sessions. Before relying on these rules to hire a minor in a parent-owned business, confirm with the primary sources below.

Other states with distinctive family-business carve-outs