Hiring Minors: What Employers Need to Know About Laws, Hours & Payroll

Bringing teen workers onto your team can be a smart move. You get extra help during busy seasons, your managers gain leadership experience, and young employees get a first step into the workforce. But hiring minors is not the same as hiring adults.

There are strict rules around hours, job duties, paperwork, and payroll. Break those rules and you could face fines, back pay, or an investigation you never wanted.

In this guide, we’ll walk through the big things employers should understand before they hire minors—plus how a payroll partner like Horizon Payroll helps keep everything organized and compliant.

This article is for general information, not legal advice. Child labor laws vary by state and industry, so it’s important to confirm details with legal counsel and your state labor agency.

Why Businesses Consider Hiring Minors

Many employers are taking a fresh look at minor employees—especially in service and seasonal industries.

Common reasons employers hire minors

• Seasonal surges: Summer rush, holiday peaks, and special events.

• Entry-level roles: Positions that are ideal for people just starting out.

• Wage budgets: Many teen roles are entry-level, which can help manage payroll costs while still offering fair pay.

• Talent pipeline: A 16-year-old cashier today might be your assistant manager in a few years.

Minors can be a great fit in retail stores, restaurants and cafes, amusement and recreation facilities, pools and camps, and entertainment venues. These roles typically match the physical and schedule limitations that apply to younger workers.

Common tasks that minors handle include customer-facing roles such as cashiers, hosts, or counter staff, as well as responsibilities like stocking shelves, providing support behind the scenes, or even serving as lifeguards or camp counselors when properly trained. The key is ensuring duties align with both safety standards and legal age restrictions.

Child Labor Laws 101

When you hire minors, you’re operating under two big umbrellas: federal child labor laws and state laws. Employers usually need to follow whichever rule is more protective of the minor. Generally, a minor is anyone under 18. Within that group, age really matters—what a 17-year-old can do may be very different from what a 14-year-old can do.

Age-based restrictions

While details vary, employers typically see rules along these lines:

• Under 14:

  • Very limited in when and where they can work.

  • Often restricted to certain types of employment (for example, family businesses, certain farm work, or entertainment with strict conditions).

• Ages 14–15:

  • Can work in a wider range of non-hazardous jobs (like retail or food service).

  • Face strict limits on hours, especially on school days.

• Ages 16–17:

  • Can work more hours and at more times of day.

  • Still barred from certain hazardous occupations and equipment.

Typical “no-go” areas for minors may include:

• Operating heavy machinery or certain power tools

• Certain construction or manufacturing tasks

• Work involving dangerous chemicals or high-risk environments

• Driving on public roads (with limited exceptions for older teens)

Again, the exact list depends on federal and state rules, so it’s important to confirm it for your location and industry.

Hour and schedule limits for minors

Scheduling can be a major compliance challenge. Minors often face limits on the number of hours they can work in a single day or week, especially during the school year. Laws frequently regulate how early shifts may begin or how late teens can work at night, with younger teens facing the strictest boundaries. When school is out, those rules may loosen, but they rarely disappear entirely. Keeping a close eye on hours is essential if you want to avoid violations.

Work Permits, Documentation, and Onboarding

Hiring minors often comes with an extra layer of paperwork.

Work permits and employment certificates

Some states require a work permit or employment certificate for minors. In many cases:

• The permit is issued by a school, state labor department, or another official agency.

• The employer may need to sign a form that outlines the type of work and schedule.

• You must keep the permit on file at your place of business.

The process can feel like “one more step,” but it’s also a useful checkpoint to make sure the job is appropriate and compliant.

Verifying age and right to work

You will still need to verify a minor’s age and eligibility to work just as you would for any new hire. That typically involves reviewing legal documents like a birth certificate or passport to confirm age and completing Form I-9 to verify authorization to work in the U.S. Minor employees must be fully documented and added to payroll—not treated informally or as “helping hands.”

Parent or guardian involvement

In some cases, parental consent or involvement may be required. Even when it’s not legally mandated, it’s still wise to:

• Make sure parents understand the schedule and expectations.

• Explain your safety policies, especially if the job is physically demanding or in a busy environment.

• Provide a clear point of contact if a parent has questions about hours, pay, or workplace issues.

This proactive communication helps build trust and reduces misunderstandings.

Payroll and Compensation Considerations for Minors

Now, the piece many employers really worry about: how to pay minors correctly.

Do minors get paid differently?

Minors are still employees. That means:

• They should receive at least the applicable minimum wage (federal, state, or local—whichever is higher).

• Overtime rules still apply when they work more than the threshold hours under the law.

Some jurisdictions allow special youth wages in narrow circumstances, but the conditions can be strict and time-limited. You’ll want to double-check the rules before considering anything outside a standard minimum wage.

Taxes and withholding for minors

A common myth is that minors “don’t pay taxes.” That’s not how it works.

In general:

• Federal and state income taxes still apply based on total earnings and withholding choices on their W-4.

• Social Security and Medicare (FICA) typically apply to minor employees, with limited exceptions in specific situations.

• A minor may claim that they expect no tax liability on their W-4, but that depends on their entire income picture—not just your job.

A modern payroll system helps ensure that:

• The correct tax tables are applied.

• W-4 information is on file and used properly.

• Year-end W-2s accurately reflect the minor’s earnings and withholding.

Time tracking and breaks

Because minors face hour and schedule restrictions, accurate timekeeping is essential. You’ll want systems that:

• Track exact clock-in and clock-out times.

• Enforce or prompt meal and rest breaks, especially if your state has special rules for minors.

• Make it easy to spot when a minor is approaching a weekly or daily limit.

When your timekeeping feeds directly into payroll, it’s much easier to prevent mistakes instead of fixing them later.

Common Mistakes Employers Make When Hiring Minors

Most employers are not trying to break the rules. But a few common missteps keep showing up.

Common compliance mistakes

Here are some issues we see again and again:

• Assigning hazardous tasks: Letting minors use equipment or perform duties that are barred for their age group.

• Overscheduling: Letting minors work too many hours per day or week, or too late into the night during school periods.

• Ignoring state rules: Assuming federal rules are the whole story and overlooking stricter state requirements.

• Paying off the books: Treating minors like “helpers” and not setting them up in payroll at all.

Each of these can lead to serious headaches later.

Penalties and consequences

Violations can lead to:

• Fines and civil penalties

• Requirements to pay back wages and possibly overtime

• Investigations from labor agencies

• Reputational harm in your community

Compliance may feel tedious, but the cost of getting it wrong is almost always higher than the cost of doing it right.

How Payroll & HR Technology Help You Stay Compliant

The good news: you don’t have to manage all of this in a spreadsheet and a stack of sticky notes.

Using payroll systems to manage minor employees

A well-configured payroll and timekeeping system can:

• Flag employees by age group, so you can apply the right rules.

• Sync with your scheduling tools to help prevent minors from being assigned prohibited shifts.

• Apply tax and wage rules consistently across locations.

• Generate reports that make it easy to review hours worked by minors and verify compliance.

Instead of your managers trying to remember every rule, your systems can help enforce them.

How Horizon Payroll supports employers hiring minors

At Horizon Payroll, we work with many employers who hire minors—especially in retail, food service, recreation, and seasonal environments. We can help you:

• Set up onboarding workflows that collect the right information for minor employees.

• Configure pay codes and rules that reflect federal, state, and local requirements.

• Integrate time and attendance so scheduling and payroll share the same source of truth.

• Run audit reports that show who is working when, broken down by age, location, and position.

If you’re planning to expand your minor hiring or formalize it for the first time, we’re here to help you build a compliant, efficient process from the start.

Hiring Minors: Frequently Asked Questions

Can a minor work full-time?

It depends on their age, the time of year, and your state’s rules. Younger teens usually face tight limits on how many hours they can work and when they can work, especially during the school year. Older teens may have more flexibility, but you still need to confirm federal and state restrictions.

Do minors pay taxes on their wages?

Yes, minors generally pay taxes on their wages just like adults. Whether they end up owing tax at year-end depends on total income and personal circumstances, but payroll should still handle income tax withholding, Social Security, and Medicare in most cases.

Do I have to provide breaks for minors?

Many states do require specific meal and rest breaks for minors, sometimes with stricter rules than for adults. Even if your state doesn’t, giving scheduled breaks is a good practice for safety, productivity, and morale. Check your state’s requirements to be sure.

What happens if I accidentally schedule a minor for too many hours?

If a minor works beyond legal limits, you may need to adjust future schedules, document what happened, and possibly address it with your state labor agency if there’s an investigation. Repeated or serious violations can lead to penalties, so it’s important to fix the root cause—usually by tightening your timekeeping and scheduling processes.

Can minors work in hazardous environments if they’re supervised?

Supervision doesn’t always make a prohibited job legal. Certain types of work are off-limits to minors, even with supervision. Before you assign a task that involves heavy equipment, high-risk environments, or dangerous substances, you’ll want to confirm that it’s allowed for the minor’s age group.