What Michigan Retailers Need to Know
On Oct. 1, 2026, Michigan will implement significant changes to its youth employment laws, affecting both minors seeking employment and the businesses that hire them. These reforms aim to modernize the work permit process, enhance enforcement mechanisms, and adjust wage standards.
Key Changes
Centralized Work Permit System: The authority to issue work permits for minors will transition from local school districts and non-public schools to the Michigan Department of Labor and Economic Opportunity (LEO). This shift is designed to streamline the process and ensure uniformity across the state.
Online Employment Registration: LEO will establish and maintain a free online employment registration system accessible to minors, their parents or guardians, and employers. Employers intending to hire minors must submit specific information to this system, including the business name, contact details, the minor’s name and contact information, and the worksite address. LEO is mandated to approve a minor’s work permit within 15 days; if this timeframe is not met, the minor may commence work immediately.
Impact on Retail Businesses
These legislative changes will have several implications for retail businesses:
- Administrative Adjustments: The shift to an online work permit system will require retailers to familiarize themselves with a new platform and ensure timely submission of necessary information.
- Compliance Obligations: With increased penalties for violations, retail businesses must diligently adhere to youth employment standards to avoid substantial fines and potential criminal charges.
- Financial Considerations: The scheduled minimum wage increases will directly impact payroll expenses. Retailers employing tipped workers must also prepare for the gradual rise in the tipped minimum wage, necessitating adjustments to compensation structures.
- Employee Benefits Management: The revised ESTA mandates that employees accrue paid sick time, introducing additional administrative responsibilities to track accruals and manage leave requests.
Proactive Steps for Retailers
To navigate these upcoming changes effectively, retail businesses can take the following actions:
- Educate and Train Management: Ensure that managers and HR personnel are well-informed about the new youth employment regulations, wage adjustments, and sick leave policies to maintain compliance.
- Update Internal Policies: Revise employee handbooks and operational procedures to reflect changes in work permit processes, wage rates, and sick leave accruals.
- Implement Robust Record-Keeping: Adopt reliable systems to monitor work permit statuses, wage compliance, and sick leave accruals, thereby minimizing the risk of violations.
- Assess Financial Impact: Conduct financial analyses to understand the implications of increased wages and benefits on the business’ bottom line, allowing for strategic planning and budgeting.
- Engage in Industry Dialogues: Participate in discussions with industry associations and peers to share best practices and strategies for adapting to the new regulatory landscape.
By proactively addressing these areas, retail businesses can ensure a smooth transition and continued compliance with Michigan’s evolving employment laws.
MRA will be closely monitoring these legislative changes and will continue to provide updates as the Oct. 1, 2026 implementation date approaches. MRA remains committed to keeping retailers informed about compliance requirements, best practices, and any further developments. Stay tuned for additional guidance, resources, and advocacy efforts to help Michigan businesses navigate these new youth employment laws with confidence.
