Governor Reynolds protests excessive fines against Iowa small businesses for employing teenagers

Govt. Kim Reynolds is pushing the federal government to issue fines to Iowa businesses that let teenagers work later and longer hours after the passage of a state law easing child labor rules.

State Republicans passed a law last year allowing teenagers to work more hours than federal law allows. The law allows 14- and 15-year-olds to work an extra two hours each day. Teenagers aged 16-17 can serve alcohol under the new law and work the same number of hours as adults.

Reynolds accuses the U.S. Department of Labor of targeting Iowa businesses and handing them excessive fines, putting them out of business.

The US Department of Labor has said it’s a problem they’ve seen across the country and that “where a state child labor law is less restrictive than federal law, the federal law applies. Where a state child labor law is more restrictive than federal law, state law applies. The law that provides the greatest protection for the child is the law that prevails.

Complete letter of Governor Reynolds

“I am writing on behalf of small businesses across Iowa who are facing excessive fines due to the US Department of Labor’s enforcement of youth employment laws.

“My office has received numerous reports of small business owners who have been subject to excessive investigations and penalties by the US Department of Labor for employing teenagers until 9:00 p.m. on school days or 11:00 p.m. on non-school days, as permitted by state law. These businesses are facing fines of up to $180,000 without being allowed to remediate, even if they have had no prior violations.

“Sugapeach Chicken and Fish Fry in North Liberty, Iowa is one of those businesses. Chad and Carol Simmons opened Sugapeach in August 2016 and employ teenagers not only to serve their customers, but also to support their community. The Simmons family participates in the Scholars Making Dollars program coordinated by the local chapter of Alpha Phi Alpha, a historically black fraternity. Its members mentor area youth, while local businesses like Sugapeach give them opportunities to develop job skills, gain real-world experience and earn a salary. Sugapeach, like many small businesses, is a staple of its community, and its possible closure, due to heavy penalties imposed by the department, will have impacts far beyond its doors.

“We are aware of the differences between Iowa’s federal and state labor laws, and that federal law places greater restrictions on young teens’ ability to work. Iowa’s maximum allowable daily and weekly hours of work— s for teenagers has been above the federal maximum since 1970, with no enforcement problems. Recently, Iowa passed a bill in 2023 that extended the hours allowed for 14- and 15-year-olds by two hours, from 7:00 PM to 9:00 PM during the school year and 9:00 PM to 11:00 PM during the summer months.And Iowa isn’t the only state that does this.

“More than 25 states currently have state labor laws that are less restrictive than federal law. These 25 states have not been subject to the same level of enforcement and excessive fines as Iowa. For example, South Dakota has allowed 14- and 15-year-olds to work until 10 p.m. during the school year since 1994. According to the South Dakota Retailers Association, their businesses have never faced the same level of enforcement review as Iowa in the 30 years since their law was passed.

“We can all agree that the safety, health, well-being and education of our young people is our highest priority. We fully support the enforcement of labor laws against businesses that employ young people in dangerous and harmful work environments. But a teenager working past 7pm on a school night is not oppressive child labour.

“It is not unusual for high school freshmen and sophomores who are student athletes to report to school as early as 6 a.m. for team practices and compete in games after 7 p.m. at a school night. The same can be said for many other student activities, from music and debating to academic or social clubs. These types of activities are considered good for children with evidence suggesting physical, mental and social benefits.

“The work is equally beneficial for the children. Research shows that part-time employment benefits teenagers beyond just a paycheck. High school students who hold down a job set themselves up for future careers with higher wages, increased annual income, and less time spent out of work. Having a job also teaches them a sense of responsibility and strengthens their work ethic. And in today’s workforce, young workers help small businesses thrive.

“I am writing on behalf of a local restaurant, fast food franchise and high street business in rural Iowa seeking to provide employment opportunities for youth in their community. We respectfully request reconsideration or renegotiation of the fines imposed on the businesses of Iowa small businesses facing closure due to excessive fines.

“Thank you for your attention to this important matter.”