Understanding Employment Laws: Size Matters

Employment laws can be complex and vary depending on the number of employees a business has. In the United States, the Department of Labor (DOL) administers and enforces most federal employment laws, while several other federal agencies, such as the Equal Employment Opportunity Commission (EEOC) and the National Labor Relations Board (NLRB), also play a role in regulating employment issues. Understanding these laws is crucial for employers to ensure compliance and avoid legal issues.

Laws for businesses with 15+ employees

The number of employees a business has is a key factor in determining which federal employment laws the employer must comply with. While some laws apply to all employers, others are only applicable to businesses with a certain number of employees. Here is a detailed overview of the laws that apply to businesses with 15 or more employees:

Americans with Disabilities Act (ADA): This law prohibits discrimination against individuals with disabilities in all employment practices, such as recruitment, compensation, hiring, firing, job assignments, training, and benefits. Employers are required to make "reasonable accommodations" for employees with disabilities unless it causes undue hardship.

Genetic Information Nondiscrimination Act (GINA): GINA prohibits employers from discriminating against employees or applicants based on their genetic information, including their own genetic tests, family medical history, and genetic information about their fetuses or family members.

Pregnancy Discrimination Act (PDA): The PDA protects pregnant employees from discrimination due to pregnancy, childbirth, or related medical conditions. Employers must treat pregnant individuals or those impacted by related conditions equally to other employees or candidates with a similar ability to work.

Fair Labor Standards Act (FLSA): The FLSA establishes minimum wage requirements, overtime pay rules, child labour laws, and record-keeping obligations. It sets the federal minimum wage at $7.25 per hour and requires overtime pay of one-and-one-half times the regular rate for non-exempt employees working more than 40 hours a week.

Occupational Safety and Health Act (OSH Act): The OSH Act mandates employers to ensure a safe work environment for their employees. The Occupational Safety and Health Administration (OSHA) enforces safety standards and conducts workplace inspections and investigations to ensure compliance.

Employee Retirement Income Security Act (ERISA): ERISA sets minimum standards for employee benefit plans, such as 401(k) plans and group health programs. Employers are required to provide information about plan features and set standards for participation.

Uniformed Services Employment and Reemployment Rights Act (USERRA): USERRA prohibits discrimination against individuals based on their membership in uniformed services. Employers must not discriminate during the hiring process or throughout employment. Additionally, employees taking leave for military service must be reinstated into employment upon their return.

Consumer Credit Protection Act (CCPA): The CCPA protects employees from being terminated due to garnished wages for a single debt and limits the amount that can be garnished in a week.

Immigration Reform and Control Act (IRCA): IRCA requires employers to certify that their employees are legally authorised to work in the United States. Employers and employees must complete the Employment Eligibility Verification Form (I-9).

Jury Systems Improvement Act (JSIA): Employers are prohibited from discharging or retaliating against employees summoned to jury duty in federal court. They must allow employees to comply with the summons, regardless of state law.

These laws are essential for maintaining fair and equitable workplaces, ensuring that employees are treated with dignity and respect, regardless of their personal characteristics or circumstances. By complying with these laws, businesses can foster a diverse and inclusive environment, attract top talent, and enhance their reputation as an employer of choice.

Laws for businesses with 20+ employees

The following laws apply to businesses with 20 or more employees:

Age Discrimination in Employment Act (ADEA)

The ADEA prevents employers from discriminating against individuals who are 40 years of age or older. This includes hiring and firing decisions, as well as any other discriminatory actions throughout their employment.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

COBRA requires employers to offer their employees and their families the opportunity to continue their healthcare coverage in situations where it would otherwise end. This includes employment termination (except in cases of gross misconduct), reduction in work hours, recent entitlement to Medicare, divorce or legal separation, death of the covered employee, and loss of "dependent child" status.

Affordable Care Act (ACA) – Employer Shared Responsibility Rules

Under the ACA, employers must offer affordable, minimum-value healthcare coverage to all full-time employees and their dependents. If an employer chooses not to provide this coverage, they have the option to make a payment to the IRS, but only if at least one full-time employee receives a premium tax credit for purchasing individual coverage.

Worker Adjustment and Retraining Notification (WARN) Act

The WARN Act requires employers to provide written notice at least 60 calendar days in advance of covered plant closings and mass layoffs affecting 50 or more workers at a single site of employment.

The Employer Information Report EEO-1 (EEO-1 Report)

The EEO-1 Report requires employers to submit employment data categorized by race/ethnicity, gender, and job category to the Equal Employment Opportunity Commission (EEOC) and the Department of Labor (DOL). This report must be submitted annually.

Employee Polygraph Protection Act (EPPA)

The EPPA prohibits employers from using lie detector tests for pre-employment screening or during the course of employment, with certain exceptions.

Employee Retirement Income Security Act (ERISA)

The ERISA sets minimum standards for employee benefit plans, such as 401(k) plans, and welfare benefit plans, such as group health programs. Employers are required to provide information about plan features and set standards for participation, among other things.

Fair Labor Standards Act (FLSA)

The FLSA applies to all business owners and establishes minimum wage requirements, overtime pay rules, child labor laws, and record-keeping obligations. The federal minimum wage is $7.25 per hour, but state laws may require a higher minimum wage rate. The FLSA also requires employers to pay an overtime rate of 1.5 times the regular rate for employees working more than 40 hours per week.

Occupational Safety and Health Act (OSH Act)

The OSH Act requires employers to ensure a safe work environment for all employees. The Occupational Safety and Health Administration (OSHA) enforces a list of standards based on the industry of the business.

Immigration Reform and Control Act (IRCA)

The IRCA requires all employers to certify that an employee is legally allowed to work in the United States. Employers must also provide documentation through the Employment Eligibility Verification, also known as Form I-9.

Equal Pay Act (EPA)

The EPA requires employers to provide the same compensation for all employees, regardless of sex, who perform substantially equal work within the same workplace. This covers all forms of pay, and employers may not reduce anyone's wages if wage inequality exists.

Uniformed Services Employment and Reemployment Rights Act (USERRA)

Under the USERRA, employers are not allowed to discriminate against individuals based on their membership in the uniformed services. This includes the hiring process and the duration of their employment. Employees who need to take leave for military service must give a 60-day notice, and employers must reinstate them into employment upon their return.

Consumer Credit Protection Act (CCPA)

The CCPA protects employees from being terminated because of garnished wages for a single debt. It also limits the amount of earnings that can be garnished in one week.

Jury Systems Improvement Act (JSIA)

The JSIA prohibits employers from discharging or retaliating against employees who are summoned to jury duty in federal court. Employers must allow employees to comply with the summons, regardless of state law.

Americans with Disabilities Act (ADA)

The ADA prohibits employers from discriminating against individuals with disabilities in any area of employment, including hiring, payment, job assignments, training, and benefits. Employers are also required to make "reasonable accommodations" for employees with disabilities.

Genetic Information Nondiscrimination Act (GINA)

GINA prohibits employers from discriminating against employees because of their genetic information, including their own genetic tests, family medical history, requests for genetic services, and genetic information about their fetuses or family members.

Pregnancy Discrimination Act (PDA)

The PDA prohibits employers from discriminating against employees because of pregnancy, childbirth, or related medical conditions. Employers must treat pregnant individuals or those impacted by related conditions equally to other employees or candidates with a similar ability to work.

This law prevents employers from discriminating against individuals based on their race, color, religion, sex, or national origin. This includes discriminatory questions on employment application forms, hiring decisions, and firing decisions.

Laws for businesses with 50+ employees

Once a business reaches 50 employees, it is subject to a number of additional laws and compliance requirements. These laws are in place to ensure equal opportunities in employment and to protect employees' rights.

Firstly, the Family and Medical Leave Act (FMLA) applies to businesses with 50 or more employees. This law requires employers to provide up to 12 weeks of unpaid, job-protected leave for their employees, for reasons such as caring for a new child, a family member with a health condition, or managing their own health condition.

Secondly, the Affordable Care Act (ACA) comes into play. This act requires employers to offer affordable, minimum value health coverage to their full-time employees and their dependents. If they fail to do so, they may be subject to penalties.

Additionally, businesses with 50 or more employees and government contracts exceeding $50,000 must implement Affirmative Action Plans (AAPs). These plans outline policies and procedures to ensure equal employment opportunities for women, minorities, people with disabilities, and veterans.

Furthermore, the Equal Employment Opportunity Commission (EEOC) requires federal contractors with 50 or more employees to submit the EEO-1 Report. This report includes demographic data on employees, such as race, ethnicity, gender, and job category.

Moreover, businesses with 50 or more employees may be subject to state and local regulations, such as providing sexual harassment training for managers and supervisors.

It is important for employers to be aware of these laws and to take positive steps towards compliance to avoid penalties and legal issues.

Laws for businesses with 100+ employees

As a business owner, it is imperative to be aware of the federal employment laws that apply to your company. While some laws apply to all employers, others are contingent on the number of employees. Here is an overview of the laws that businesses with 100 or more employees need to comply with:

Worker Adjustment and Retraining Notification (WARN) Act

The WARN Act mandates that employers provide written notice at least 60 calendar days in advance of covered plant closings and mass layoffs affecting 50 or more workers at a single site of employment. This law is applicable to private-sector employers with 100 or more employees.

EEO-1 Report

The EEO-1 Report, mandated by the US Equal Employment Opportunity Commission (EEOC), requires employers with 100 or more employees to submit "demographic workforce" data annually. This data includes information on race, ethnicity, gender, and job category, which is then provided to the EEOC and the Department of Labor (DOL).

Form 5500

If your business offers employer-sponsored insurance plans with over 100 "participants," which can include employees, COBRA enrollees, and retirees (but not dependents), you must file Form 5500 annually. This form collects data on employees' benefits, such as medical, dental, Section 125, 401(k), and retirement plans. It is designed to provide the IRS and DOL with insights into the operation and compliance of your benefit plans.

Affirmative Action Program

If your business has 50 or more employees and has secured government contracts worth over $50,000, an Affirmative Action Program is necessary. This program ensures equal employment opportunities for women, minorities, veterans, and individuals with disabilities. It entails implementing proactive policies and procedures for recruiting, hiring, training, and promoting individuals without discrimination.

Compliance with All Previous Laws

Businesses with 100 or more employees are also required to comply with all the laws applicable to smaller businesses. This includes laws such as the Family and Medical Leave Act (FMLA), the Affordable Care Act (ACA), the Age Discrimination in Employment Act (ADEA), and more.

Laws for all businesses

The following laws apply to all businesses, regardless of the number of employees:

Fair Labor Standards Act (FLSA)

The FLSA establishes minimum wage requirements, overtime pay rules, child labor laws, and record-keeping obligations. The federal minimum wage is $7.25 per hour, but employers must comply with state law if the minimum wage is higher. The FLSA also requires employers to pay an overtime rate of 1.5 times the regular rate for hours exceeding 40 hours per week.

Immigration Reform and Control Act (IRCA)

The IRCA requires employers to certify that employees are legally allowed to work in the United States. Employers must complete the Employment Eligibility Verification, or I-9 form, for each employee.

Equal Pay Act (EPA)

The EPA requires employers to provide the same compensation for all employees, regardless of sex, who perform substantially equal work within the same workplace. The law covers all forms of pay, and employers cannot reduce anyone's wages to achieve compliance.

Employee Polygraph Protection Act (EPPA)

The EPPA prohibits the use of lie detector tests for pre-employment screening or during employment, with some exceptions.

Occupational Safety and Health Act (OSH Act)

The OSH Act requires employers to ensure a safe work environment for all employees. The Occupational Safety and Health Administration (OSHA) enforces safety standards based on the industry of the business.

Employee Retirement Income Security Act (ERISA)

The ERISA establishes minimum standards for employee benefit plans, such as 401(k) plans, and welfare benefit plans, such as group health programs. Employers must provide information about plan features and set standards for participation.

Uniformed Services Employment and Reemployment Rights Act (USERRA)

The USERRA prohibits employers from discriminating against individuals based on their membership in uniformed services. Employers must not discriminate during the hiring process or during employment, and they must reinstate employees to their positions after taking leave for military service, provided they give 60 days' notice.

Consumer Credit Protection Act (CCPA)

The CCPA protects employees from being terminated due to garnished wages for a single debt. It also limits the amount of earnings that can be garnished in a week.

Jury Systems Improvement Act (JSIA)

The JSIA prohibits employers from discharging or retaliating against employees summoned to jury duty in federal court. Employers must allow employees to comply with the summons, regardless of state law.

Frequently asked questions