Children and youth services can do what ever they want to do short of kidnapping if they feel that the minor child is in danger. They have to look out for the best interest of the child. It sounds to me like your not getting the whole story from your child, but all state laws are different so I could be wrong. I am only familiar with PA state law. What you could do is file for permanent or temporary custody of the child until son/daughter take some parenting classes or some documented rehabilitation. I would tell your son/daughter to F.O.R. or focus on renewel groups in your area and take the free parenting classes now, so that when they do go to court or try to get the baby back the judge will see that they are trying to better themselves and might let the baby go home.
