Iowa proposes child labor rule changes including penalty adjustments; labor group warns of weakened enforcement

The Department of Inspections, Appeals and Licensing presented proposed red-tape updates to child labor rules in Chapter 32, including changes to the parental-exemption definition and adjustments to civil penalties.

Mitchell Mahan, an attorney with the department, said the rulemaking follows Executive Order 10 and highlighted three significant changes: a modification to the parental-exemption definition; a cap on certain civil penalties for violations ("going down from 10,000 per day per child to 2,500"); and an adjustment increasing the small-business penalty deduction from 25% to 35%.

Peter Hurd of the Iowa Federation of Labor thanked the department for engagement but opposed the penalty reductions, calling them a weakening of deterrence. "In the Federation's view, the removal of [the parental-present requirement] is dangerous to children," Hurd said, adding concerns about children working night shifts or on job sites without supervision and urging higher penalties for serious violations rather than reductions.

Committee members asked for clarification about statutory authorities and whether the director has used rulemaking authority in the past to expand or clarify prohibited activities. Department counsel replied that the Iowa Code caps individual penalties at $10,000 and that the proposed per-child, per-day $2,500 figure is not an absolute ceiling because penalties accumulate with multiple infractions.

Why it matters: the rules govern when and how minors may work and set civil penalties for violations; changes to definitions and penalty structures affect enforcement incentives and protections for young workers. Labor representatives urged the committee to reconsider reductions they said would reward bad-actor employers.

The committee requested additional information and said it would continue scrutiny of the proposed language.