The materials presented or reported herein were developed under a performance contract to the School District of the City of Saginaw from the State Board of Education, Michigan Department of Education, Office of Career and Technical Education, utilizing funds made available under the Carl D. Perkins Vocational and Applied Technology Act of 1990. The opinions expressed herein do not necessarily reflect the policies and positions of the Michigan State Board of Education or the Michigan Department of Education, and no official endorsement should be inferred.
ACKNOWLEDGMENTS
PURPOSE OF THIS GUIDE
WHY ENGAGE YOUTH IN WORK-BASED LEARNING?
WHAT IS WORK-BASED LEARNING?
Program models
Role of youth at the worksite
WHAT ARE THE RISKS FOR BUSINESS & INDUSTRY WHEN PARTICIPATING IN WORK-BASED LEARNING PROGRAMS?
Regulatory compliance
Injuries to participants
Participant negligence
HOW TO MANAGE THE RISKS--A RISK MANAGEMENT PLAN:
Risk control guidelines
Risk Management Plan Components
Risk Financing Guidelines
Insurance Coverage
Liability Shields
RESOURCES
REFERENCES
This guide was developed under a performance contract with the School District of the City of Saginaw through the Michigan State Board of Education, Michigan Department of Education, Office of Career and Technical Education. Tom Benton, School-to-Work Specialist, School District of the City of Saginaw served as principal developer of the guide.
Valorie Putnam, Work-based Learning Consultant, Michigan Department of Education, Office of Career and Technical Education, served as project monitor and provided leadership and direction for the project. The following people/organizations assisted in the review of this guide: John Nagy, Saginaw Products; Michigan Jobs Commission s Insurance Round Table; Bill Castanier, Michigan Jobs Commission; Michigan Career Coordinators Association, and the Michigan Association of School Placement Personnel.
Recognition is due to the following individuals and agencies who assisted in the development and review of this guide:
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Joseph Agboka |
Edward Fredericks |
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MI Department of Consumer & Industry Services |
MI Department of Consumer and Industry Services |
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Safety Education and Training |
Division of Occupational Health |
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P.O. Box 30015 |
P.O. Box 30195 |
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Lansing, MI 48909 |
Lansing, MI 48909 |
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John Bechtel |
Gus Kihlstrand |
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Cheryl Cornellier |
Jim Monroe |
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MI Department of Consumer & Industry Services |
School Employers Trust/ |
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Bureau of Workers Disability Compensation |
School Employers Group |
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P.O. Box 30016 |
415 W. Kalamazoo St. |
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Lansing, MI 48909 |
Lansing, MI 48933 |
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Robert Pangman |
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Mike Dankert |
Joanne Schafer |
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Brian Dunn |
Carole Stacy |
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Georgia Harris |
Robert Taylor |
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MI Department of Consumer & Industry Services |
Michigan Department of Education |
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Wage Hour Division |
Office of Career and Technical Education |
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P.O. Box 30015 |
P.O. Box 30009 |
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Lansing, MI 48909 |
Lansing, MI 48909 |
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James L. deSpelder, ARM JD |
Lorraine Smith |
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Middle Cities Risk Management Trust |
U.S. Department of Labor |
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Middle Cities Workers Comp Fund |
Wage Hour Division |
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2160 Commerce Parkway |
211 West Fort, Room 1317 |
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Okemos, MI 48864 |
Detroit, MI 48226 |
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Pat Audet |
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Jerry Dunn |
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Metropolitan Association for Improved School Legislation |
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Garden City Public Schools |
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1333 Radcliff |
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Garden City, MI 48135 |
The purpose of this document is to provide guidance to business and industry when they engage in work-based learning programs, especially those targeted toward high school age students. The profusion of laws, regulations, liability, and risk management issues which face business and industry present a compelling case for a ready source of information regarding the basic provisions of child labor, safety and health, and liability.
Unfortunately, this guide will not provide all the answers. Liability rules vary by industry sectors, insurance needs are specific to the type of program activities, and risk management strategies need to be jointly developed with school partners. Our objective in developing this guide is to identify potential problems and provide business and industry with guidelines, resources, and next steps for developing solutions.
Information in this guide is general description only and does not carry the force of legal opinion. Any risk management plan developed for a work-based program should always be reviewed by legal and risk management experts before implementation.
This guide may raise as many questions as it answers. Your comments and feedback are needed so that we can create an expanded and improved version in the future.
WHY Engage youth in work-based learning?
As businesses and industries in Michigan confront the challenges of a competitive and global economy, a lesson can be learned from competitors in other countries. Their economic partners (business, labor, and government) have placed a high value on the development of their workforce and have worked together to maximize the productivity of their workers, including participating with schools to motivate and prepare youth.
Another lesson can be learned from a national survey1 about practices and expectations of employers in their development of a skilled and proficient workforce. The companies surveyed who made investments in schools and who participated in work-based programs that brought youth into the workplace, were also the most competitive companies. Their workforces displayed certain characteristics. They were more likely to:
Engaging youth in structured, well organized programs at the workplace is a strategy that successful businesses and industries use in their efforts to develop a skilled workforce.
1(National Center on the Educational Quality of the Workforce, University of Pennsylvania, 1995)
Work-based learning is a combination of school-based preparation and actual work experiences designed to enable students to acquire attitudes, skills, and knowledge for career and other life roles in real work settings.
Work-based learning is acclaimed for its ability to help youth and adults:
There is an extensive range of operational patterns, purposes, and program titles of school- and community-sponsored programs in Michigan that are considered work-based learning.
Work-based learning programs can involve youth and adults as observers, trainees, or employees and can be for time periods ranging from an hour a day to half-day sessions, to several days, one to three weeks, a semester, an entire school year, or during summer months.
Paid work-based learning programs usually are at least one semester in length. Unpaid work-based learning programs involve students as observers or trainees in situations ranging from an hour, a day, three weeks, to as long as one semester in length.
Career Awareness\Exploration Programs
The major types of work-based learning programs for students in Michigan high schools, area career-technical centers, trade academies, community agencies, and community colleges with a focus on career awareness and exploration are field trips, job shadowing, and service learning (volunteer).
Occupational Training Programs
The major types of work-based learning programs for students in Michigan high schools, area career-technical centers, trade academies, and community colleges with a focus on specialized occupational learning are contracted instruction, cooperative education, school-to-apprenticeship, and apprenticeship. Paid work experience programs focus on general occupational training, the development of good work ethics, and retaining students in school.
The applicability of many of the employment and child labor laws depends on whether a participant involved in worked-based learning has the role of a student, volunteer, trainee, and/or employee. The participants status is critical in the design, implementation, and monitoring of all work-based experiences.
Any work-based learning participant at a business or industry worksite will usually have one of the following worksite roles outlined in the charts on following two pages:
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Student/Visitor
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Participant visits the worksite to observe and learn about a career, work activity, or other aspects of an industry.
Key points: |
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Participant serves unpaid for public service or humanitarian objectives.
Key points: |
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Participant is trained at a business/industry worksite without compensation. Company permits student to work under direct supervision to gain exposure to a particular occupation. Six criteria of a trainee must be continually met.
Key points: |
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Participant is enrolled in a course of study and training in a cooperative training program under a recognized state or local educational authority or private school.
Key points: |
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Participant is employed in a craft recognized as an apprenticable trade and is registered by the Bureau of Apprenticeship and Training in accordance with the standards established by the Bureau.
Key points: |
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Participant is hired by private or public employer to perform work. No structured relationship exists between school and work.
Key points: |
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What are the risks for business & Industry when participating in work-based learning programs?
There are risks involved in everything that business and industry undertakes. Involving youth or adults in work-based learning programs can introduce additional risks to participating businesses and industries, sponsoring organizations and agencies, and even participants.
Some factors for these added risks could include (adapted from National Institute For Occupational Safety and Health):
Despite these potential risk factors involving youth in the workplace, both the insurance industry loss history and MIOSHA injury incidence rates indicate that "young people have injury incidence rates at or below those of adult workers." MIOSHAs analysis of injury rates is that regardless of age, more than half of injured workers had less than one year on the job and/or had not had any safety training.
Regulatory compliance, injuries to participants, and participant negligence are the three primary areas of potential risks involved with the participation of youth in the workplace.
There are local, state, and federal statutes, regulations, and court decisions which set standards for employers, schools, and agencies when they engage youth in a work setting. The Federal Fair Labor Standards Act, Michigan Youth Employment Act, and Michigan Occupational Safety and Health Act are the three primary laws that regulate youth employment.
The primary law governing the employment of workers under age 18 is the Fair Labor Standards Act, which is enforced by the Wage Hour Division within the U.S. Department of Labor. Child labor provisions of this act are designed to:
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Student/learners under 18 may not be employed in hazardous occupations as listed in Michigans Youth Employment Standards, 1988, and the Federal Child Labor Bulletin 101. Under certain conditions, 16 and 17 year student/learners and apprentices may be exempt from Federal Hazardous Occupations 5, 8, 10, 12, 14, 16, and 17. This "cooperation education" exemption is allowed if the minor is enrolled in an appropriate and approved career/technical program and the student/learner is employed under a written agreement which stipulates that:
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Michigan Youth Employment Standards Act
The primary law in Michigan governing the legal employment and protection of youth in Michigan is contained in Youth Employment Standards Act and Youth Employment Standards rules. Michigans child labor provisions are enforced by the Wage and Hour Division within the Wage Hour Division, Bureau of Safety and Regulations.
Michigans child labor laws adhere closely to the federal provisions, but do include some unique and more restrictive provisions. According to Michigan law:
Michigan Occupational Safety and Health
The federal Occupational Safety and Health Act of 1970 permits a state to manage its own occupational safety and health program. The Michigan Occupational Safety and Health Act (MIOSHA), Act 154 of 1974, provides for administration and enforcement of occupational health and safety standards in Michigan.
The purpose of Michigans Occupational Safety and Health Act is to assure every working person a safe and healthful working environment and to preserve human resources. Occupational health rules and regulations require specific conditions in the workplace or the use of specific practices, methods, or processes to promote safe work. Employers are responsible for becoming familiar with standards applicable to their establishments and for ensuring a safe work environment.
MIOSHA is enforced by two units in the Michigan Department of Consumer and Industry Services: Division of Occupational Health and Bureau of Safety and Regulations
Other regulations
Other laws and regulations also impact the design of work-based learning, these and others need to be considered:
Penalties
Laws and regulations are established to provide standards for the well-being of youth in the workplace. But employers who willfully violate any federal and state child labor provisions may be subjected to a civil penalty of not more than $10,000 for each violation. In addition to child labor laws, Michigan Workers Disability Compensation Act penalizes employers of illegally hired/employed minors by doubling the compensation due the injured worker.
Technical Assistance
The Michigan Department of Consumer and Industry Services, the U.S. Department of Labor, the Michigan Department of Education, and other agencies encourage businesses and industries to contact them directly with regulatory compliance questions.
Employers need to exercise care to supervise participants and to enforce rules and regulations necessary for participant protection, including anticipating potential hazards that may cause injuries.
The acts of participants may result in accidents which may cause injuries and/or damages. Appropriate training and supervision of participants and adequate insurance coverage can reduce this risk.
Applicability of federal and state employment laws depends on each statutes definition of an "employee" (a participant may be considered an employee for one law but not for another). The following guidelines and terminology should be used in determining which would apply in particular work-based programs:
How to Manage the risks--a risk management plan:
Risk management is synonymous with good program management. The purpose of developing a written risk management plan is to 1) identify potential risks, 2) develop plans to prevent accidental injuries or damage, and 3) reduce the risk of legal accountability. A risk management plan will include risk control measures and risk finance.
Risk control guidelines are those policies and procedures that attempt to control the frequency and severity of physical injury or property damage loss.
Parties involved in work-based learning programs need to jointly develop risk management plans. Most schools have procedures and policies for field trips, cooperative education guidelines, and other program guidelines that could be adapted into a comprehensive plan to serve all parties. Employers may need to develop their own risk management plan if they participate with a variety of schools with different policies and procedures.
The following are suggested as key results of a risk management plan:
MIOSHA Programs
The MIOSHA program within the Michigan Department of Consumer and Industry Services has professional trainers and consultants available at no charge to work with business, industry, schools, and other groups or individuals to orient them to workplace safety and health requirements. Sample written programs, videos, and other materials are also available. To obtain these services, call the Division of Occupational Health at (517) 335-8250 or the Safety Education and Training Division at (517) 322-1809.
Businesses and industries who are involved in work-based learning programs must exercise due care to foresee hazards and dangers to participants and to take whatever steps and/or precautions seem reasonable to avoid these risks. The following strategies will reduce liability exposure and demonstrate a commitment to a safe and healthful environment:
Risk Management Plan Components
The following planning matrix can be used to develop appropriate risk management plans.
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Management and Supervision Issues |
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Policy and Procedures |
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Training |
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Transportation |
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Program Compliance and Coordination |
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Risk financing are those plans that provide for the financing of a potential loss. A complete risk management plan requires adequate insurance coverage and use of liability shields.
Adequate insurance coverage for any type of work-based learning programs can be arranged (negotiated) by working in conjunction with an agent or broker who is familiar with the program(s) and with the schools or agencies who may be parties to the program. The first step would be to determine the extent to which present insurance policies provide sufficient protection and the need for obtaining additional coverage for any unprotected risk.
The following is an overview of the types of insurance that need to be in place to cover the activities in work-based learning:
Injury to participants.
Participants injured at the worksite may need medical attention. If they are considered "employees" under the Workers Disability Compensation Act, expenses will ordinarily be paid by the sponsoring companies workers compensation policy. For student/visitors, volunteers, or certain unpaid trainees, expenses are usually paid by the injured individuals (or parents) health insurance policy. The "medical payments" provisions of the sponsoring companys general liability policy would also provide similar coverage for non-employee participants.
Coverage for Lawsuits
A sponsoring companys general liability policy pays claims and provides legal defense against most types of suits brought against a company and its employees, but such policies do not usually cover student/visitors, volunteers, or certain unpaid trainees. Amendments may extend the coverage to student/visitors, volunteers, and unpaid trainees.
Workers Compensation in Michigan
The purpose of the Workers Disability Compensation Act in Michigan is to provide coverage to employees when they sustain injuries that arise out of, and in, the course of employment. Employers are required to carry workers compensation insurance when they have one (1) full time-time or three (3) part-time employees.
Paid cooperative education and apprenticeship participants would be covered under the Workers Disability Compensation Act. Unpaid trainees and volunteers who are actually performing service (working), but without compensation, may also be covered under the Act. Unpaid trainee and volunteer coverage under the Act would be determined on a case-by-case basis.
Although workers compensation benefits are usually available only to paid employees, there are methods by which benefits can be calculated and awarded for volunteers and unpaid trainees.
Costs, if there are any, may be calculated on minimum wage, and costs would be negotiable between the parties involved.
Coverage under the Workers Disability Compensation Act also provides protection to the employer as well as the workers. Employers limit their liabilities under the Act because once the limited benefits are paid, the worker may not file additional lawsuits.
Liability shields are used to assign responsibility from a business to another person or organization in case of an accident or property damage. Liability shields are used to protect both the finances of the company and good will in the community. The four common liability shields are waivers, consent forms, permission slips, and indemnification agreements.
Waivers
Waivers are documents in which participants sign away their right to bring a lawsuit in the event of injury or damage. Waivers are not effective tools to use in working with young people because courts seldom allow them to excuse negligent or a duty owed a minor.
Consent Forms
"Informed" consent forms are documents that apprise the participant (and parents or guardians) in detail of the risks involved in the activity that he/she is about to perform. Participants sign the document indicating that they have read and understand the risks involved and agree not to bring a lawsuit for any harm resulting from the identified risks. Consent forms are generally upheld by courts, but they do not excuse a company from responsibilities for its own negligence. Examples would be consent forms to allow students to ride with a parent volunteer on a field trip, or use of a training agreement for a teen to work as an unpaid trainee.
Permission Slips
Permission slips are documents that inform parents and guardians about the nature, location, and details of an activity. Permission slips are helpful as a form of protection to a company--a well-informed parent or guardian may not be as likely to bring suit. Permission slips would be used to inform parents and guardians about student field trips and job shadowing events.
Indemnification Agreements
Indemnification agreements are used to shift financial burden for injuries or damages arising from activities from one party to another. The organization that signs the agreement must have both an insurance policy and the proper funds to honor the commitment to indemnify. Legal counsel or risk management representatives should be consulted before signing an indemnification agreement.
Fact sheets on a variety of topics related to work-based learning programs have been developed by various agencies who developed this guide to assist educators, business and industry representatives, risk managers, parents, and program managers:
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Beyer, D. (1995). Understanding and Applying Child Labor Laws to
Todays School-to-Work Transition Programs. Berkeley, CA: The National Center for Research in Vocational Education.
Childrens Safety Network, Massachusetts Department of Public Health. (1995). Protecting Working Teens: A Public Health Resource Guide. Newton, MA: Authors.
Fraser, B, Charner, I, Rose, K., Hubbard, S., Menzel, S. (1994). Minor Laws of Major Importance: A Guide to Federal and State Child Labor Laws. Dubuque, IA: Kendall/Hunt Publishing.
Michigan Agricultural Marketing Association, Inc. (1993). RCAP Farm Manual for Michigan Farmers. Lansing, MI: Michigan Farm Bureau.
Michigan State Board of Education. (1995). A Guide to Work-based Learning Programs: Part I--Occupational Programs. (First Edition) Lansing, MI: Author.
Michigan State Board of Education. (1995). A Guide to Work-based Learning Programs: Part II--Career Exposure. (First Edition) Lansing, MI: Author.
Minnesota Commission on National and Community Service. (1994). A Guidebook: Building Workers and Citizens for the 21st Century. St. Paul, MN: Minnesota Department of Education.
National Institute For Occupational Safety and Health. (1995) NIOSH ALERT: Preventing Deaths and Injuries of Adolescent Workers. Cincinnati, OH: Author.
Seidman, A., Tremper C. (1994). Legal Issues for Service Learning Programs. Washington D.C.: Nonprofit Risk Management Center.
Strope, John. (1984) School Activities and the Law. Reston, VA: The National Association of Secondary School Principals.
Tremper, C., Seidman, A., Tufts S. (1994). Managing Volunteers Within the Law. Washington D.C.: Nonprofit Risk Management Center.
Tufts, S., Tremper, C., Seidman A., Kahn, J. (1994). Legal Barriers to Volunteer Service. Washington D.C.: Nonprofit Risk Management Center.
U.S. Departments of Education and Labor (1995). A Guide to Work-Based Learning and the Fair Labor Standards Act. Washington D.C.: Office of the Solicitor and the Employment Standards Administration of the Labor Department.
Witmer, J. and Anderson, C. (1994). How to Establish a High School Service Learning Program. Alexandria, VA: Association for Supervision and Curriculum Development.
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The Michigan State Board of Education complies with all Federal laws and regulations prohibiting discrimination and with all requirements and regulations of the U.S. Department of Education. It is the policy of the Michigan State Board of Education that no person on the basis of race, color, religion, national origin or ancestry, age, sex, marital status or disability shall be discriminated against, excluded from participation in, denied the benefits of, or otherwise be subjected to, discrimination in any program or activity for which it is responsible or for which it receives financial assistance from the U.S. Department of Education. |
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Additional copies of this guide and listed fact sheets may be obtained by calling the Michigan Center for Career and Technical Education, Michigan State University, 230 Erickson Hall, East Lansing, MI 48823. Phone: 800-292-1606 or (517) 353-4397. Fax: 517-432-2931.
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