With almost one-fifth of employed youth finding roles in the real estate sector, it’s vital to understand the legal landscape surrounding their employment. This brings us to the federal labor laws that govern their roles. There are some federal and state laws that the employer to follow. Let’s explore some dangers to avoid while hiring minors to follow the laws of the government.
Understanding the Federal Labor Laws About Minors:
The Fair Labor Standards Act (FLSA) sets 14 as the lowest age for most non-agricultural work. This federal act has several implications for the employment of minors in the real estate industry.
The FLSA forbids minors under the age of 14 from working in non-agricultural jobs. Except in limited cases such as newspaper delivery or acting. Many businesses use time punch clocks to track their employee’s work hours and attendance. There are also age-specific restrictions when it comes to working hours for minors aged 14-15 versus those aged 16-17. For example, 14-15-year-olds may only work 3 hours per school day and 18 hours total during school weeks.
Speaking of dangerous jobs, the FLSA risky occupations order outlines a detailed list of jobs and tasks believed to be too dangerous for minors in sectors like real estate. For example, minor employees cannot operate vehicles over 6,000 pounds like large trucks or forklifts. They also cannot work on or near rooftops, or use meat slicers and bakery machines. They cannot operate power-driven equipment like circular saws, drills, or high-pressure washers. The dangerous job limits aim to prevent serious injuries in vulnerable young workers.
While the FLSA provides a federal framework, it’s essential to remember that individual states have their own labor laws, often with unique provisions.
State-Specific Labor Laws and Their Impact:
As per the National Conference of State Legislatures, 38 states have their own minimum wage laws, many of which have age-specific requirements. For instance, certain states must split the least wages for minors below 18 years of age. Many states also have distinct hour restrictions for 14-15-year-olds.
These state-specific differences have physical implications for real estate businesses. Companies need to be aware of not only federal regulations but also all related state and local laws. They need to be aware of laws that cover the employment of minors. Following only federal guidelines may still result in violations of state laws.
For example, Colorado has a tier-up least wage system where employees under 18 may be paid up to 15% below the standard least wage. But states like California exclude lower wages for minors.
These examples establish the differences found in state labor laws. Real estate companies need to research and remain aware of all appropriate regulations in the states where they operate. Simply following federal guidelines may still result in violations of stricter state laws.
Knowing the state-specific laws is the beginning. Implementing best practices when hiring minors confirms not only submission but also a healthy work environment.
Best Practices for Hiring Minors in Real Estate:
The U.S. Department of Labor highlights that employers must maintain safe work environments and obey the youth employment requirements to avoid consequences. Here are some best practices companies can implement when hiring minors:
- Provide appropriate training for all minor employees for their selected roles. Consider uniting new hires with mentors or experienced professionals.
- Ensure minors do not accept prohibited risky jobs as per federal and state laws. Monitor worksites to prevent accidents and injuries.
- Adjust workstations, furniture, tools, and equipment to suit the physical needs of younger workers.
- Limit working hours as per age limits and ensure minors take satisfactory breaks.
- Encourage open communication to understand the goals of minor workers. Provide networking and growth opportunities.
- Check in regularly with minors and their parents to address concerns. Maintain transparent policies.
While best practices can guide businesses in the right direction, it’s important to be aware of potential drawbacks and the consequences of not obeying the labor laws.
Potential Legal Pitfalls and How to Avoid Them:
The U.S. Department of Labor reported over 11,000 child labor law violations in 2019, with penalties amounting to over $5 million. Some common mistakes include:
- Having minors operate hazardous equipment like forklifts or chainsaws.
- Allowing 14-15-year-olds to work beyond the maximum permitted hours.
- Failing to get work permits where required by state law.
- Not providing safety training and proper job instructions to minor workers.
The consequences for non-compliance can be heavy, including civil monetary fines up to $15,548 per violation. Some willful or repeat violations may even warrant criminal prosecution.
Businesses can take proactive measures to avoid legal pitfalls when hiring minors:
- Consult federal and state labor departments to understand all relevant regulations.
- Designate a staff member to monitor compliance across the organization.
- Conduct periodic audits and inspections to catch issues early.
- Streamline record-keeping for minor workers’ hours, permits, training, etc.
Now that we have reached the possible risks and their consequences, let’s look ahead to the evolving role of young talent in the real estate sector and how businesses can adapt.
The Future of Minors in the Real Estate Sector:
While labor laws rightfully protect minors from exploitation, the growing numbers of youth entering real estate reflect their increasing interest in the industry. Looking ahead, we may see an increased presence of high school and college students interning or working part-time in real estate. Companies can tap into this talent pipeline by providing quality training, networking, and growth opportunities to younger workers.
As generations mature surrounded by technology, real estate businesses may also benefit by embracing fresh digital perspectives and innovations brought in by minor employees. At the same time, businesses need to continually monitor changes in labor laws and industry trends to adapt their policies and practices accordingly. Staying up-to-date on regulations through trade associations and legal consultations is key.
FAQs:
1: Can minors sign binding real estate contracts?
No, with few exceptions, minors lack the legal capacity to sign binding contracts including real estate agreements. Their signatures generally have no legal effect.
2: Are there any exceptions to the federal labor laws for family-owned real estate businesses?
No, family-owned businesses are equally subject to both federal and state labor laws about the employment of minors. The only exemption is limited roles on family farms.
3: How can real estate businesses ensure they remain updated on changing labor laws related to minors?
They can routinely check federal and state Department of labor websites, consult employment lawyers, join real estate trade associations, and read industry publications to stay current on laws and trends affecting minors.
Conclusion
Hiring minors in the real estate sector warrants careful navigation of both federal and state labor laws. While ensuring compliance, businesses can also tap into the promise of young talent by providing meaningful learning and growth opportunities. With some careful planning and monitoring, companies can successfully join minors while avoiding legal pitfalls through practical measures.
