State-by-State Guide to Legally Paying Your Kids
Every state has different rules for employing your children in your family business. Find yours below — in plain English, not legalese.
Why State Labor Laws Matter When You Pay Your Kids
Federal law gives parent-owned businesses a powerful payroll tax break. Under IRC §3121(b)(3)(A), wages you pay your children under 18 are exempt from FICA and FUTA when the business is a sole proprietorship or a qualifying partnership. That means no Social Security tax, no Medicare tax, and no federal unemployment tax on those wages — real money back in your family's pocket every year.
But here's the catch: that federal exemption does not override state child-labor laws. Every state sets its own floor for minimum working age, allowed industries, hour caps during the school year versus summer, and work permit requirements. Get one of these wrong and your entire wage deduction can be challenged — not because the IRS said so, but because a state labor board audit triggered the scrutiny.
This guide covers all 50 states. Click your state to see exactly what applies to your family business — in plain English, not legalese.
The Four Rules Every State Has (And How They Differ)
Every state's child-labor framework comes down to four categories. The federal baseline gives you a floor; states can set higher standards.
1. Minimum working age. Most states set 14 as the general minimum for non-agricultural employment, mirroring the federal Fair Labor Standards Act. But about a dozen states allow 12- or 13-year-olds in specific roles, and many states carve out family-business exemptions that let younger children work in a parent-owned operation. The exemption language varies: some say “any age,” others say “14 and under with parental supervision.” Always read the family-business clause for your state.
2. Hour caps during the school year vs. summer. States that follow the federal model cap school-year hours at 3 hours on school days and 18 hours per school week for 14–15-year-olds, expanding to 8 hours per day and 40 hours per week during summer. Many states are stricter — some cap total weekly hours at 15 even in summer. Sixteen- and 17-year-olds face far fewer restrictions, but some states still require parental consent or impose late-night curfews on work hours.
3. Prohibited industries and equipment. Federal law bans minors from hazardous occupations (HOs) — things like operating power-driven machinery, roofing, demolition, and meat processing. States add their own prohibited lists on top of that. A power lawn mower might be fine under federal rules but prohibited for minors under 16 in your state. If your business involves any physical work, machinery, or customer-facing roles, verify the prohibited-activities list for your state age group.
4. Work permit and age certificate requirements. About half the states require a work permit (also called an employment certificate or age certificate) before a minor starts working, even in a family business. The permit is typically issued by a school or a state labor agency and requires proof of age, parental consent, and sometimes a description of the job. A few states exempt family businesses entirely. Others require a permit regardless of who the employer is. Check your state's page for the exact requirement and the agency that issues permits.
Federal Exemptions That Apply Everywhere
The FLSA's child-labor rules include a family-business exemption under 29 CFR §570.126: children of any age may work in a business solely owned by their parent (or both parents), as long as the work is not in mining, manufacturing, or any of the federal hazardous-occupation categories. This exemption is meaningful because it removes the FLSA's minimum-age floor for those businesses — a 10-year-old can legally answer phones, file paperwork, or help with social media in a parent-owned sole prop.
The important nuance: “solely owned” matters. If your business is an S-Corp or a corporation of any kind, the corporation is the employer, not you personally, and the FLSA family-business exemption does not apply. Same for multi-member LLCs where both members are not parents of the child. State law in most cases follows the same “parent as employer” logic, but the definitions vary. When in doubt, verify with your state's department of labor — and consult a CPA about whether restructuring your business entity would open up additional options.
How to Use This Guide
Each state page below covers: minimum working age (including any family-business exemption), hour caps during the school year and summer, prohibited job types and equipment, work permit requirements, and the relevant state agency contact information if you need an official ruling.
Use the search box or regional tabs to find your state. If you work across multiple states — or if your business is registered in a different state than where your kids live — check both. State labor law follows where the work is performed, not where the business is incorporated.
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