Federal Law Breakdown by 1+, 15+, 20+ Employee Threshold (and more)

When you are busy getting orders out the door, the last thing you want to worry about is knowing which federal law applies to your business. To help simplify things, here is a quick breakdown of laws based on company size. 

Which federal laws apply to employers at the 1+ employee threshold? 

While several laws do not kick in until your company grows, most federal laws are enacted the moment you have just one employee, including private employers. Here are the laws that apply at the 1+ employee threshold. 

Immigration Reform and Control Act (IRCA) 

The Immigration Reform and Control Act (IRCA) requires you to only hire and retain employees who are legally authorized to work in the United States. To comply, employers and employees are required to complete Form I-9 (Employment Eligibility Verification Form) within three business days from their first day of work. 

Fair Labor Standards Act (FLSA) 

Among other things, the Fair Labor Standards Act (FLSA) requires nonexempt employees to be paid at least a minimum wage and overtime wages. You must also comply with record keeping and child labor standards. 

Occupational Safety and Health Act (OSH Act) 

The Occupational Safety and Health Act (OSH Act) requires you to provide a safe workplace, maintain records of work-related injuries, post required information, and train employees regarding safety hazards. 

Equal Pay Act (EPA) 

According to the Equal Pay Act (EPA), you must provide equal compensation to anyone who performs equal work within the same workplace, regardless of gender. 

Break Time for Nursing Mothers 

Break Time for Nursing Mothers is a sub-section to the ACA that requires you to provide rest breaks and accommodations (in a location other than a bathroom) for nursing mothers to express breast milk for up to 1 year after the child’s birth. Employers with fewer than 50 employees may be exempt if they can demonstrate an undue hardship. 

Consumer Credit Protection Act (CCPA) 

The Consumer Credit Protection Act (CCPA) says you cannot discharge an employee simply because their wages have been garnished for a debt. You are also limited to how much an employee’s earnings may be garnished in any one week. 

Employee Polygraph Protection Act (EPPA) 

According to the Employee Polygraph Protection Act (EPPA), if you are a private employer, you cannot use a lie detector test for pre-employment screening (or during the course of employment) unless you meet certain exceptions. Federal, state, and local governments are excluded. 

Employee Retirement Income Security Act (ERISA) 

Under the Employee Retirement Income Security Act (ERISA), your benefit plans must meet minimum standards outlined in the act, which include regulations for participation, vesting, benefit accrual and funding, fiduciary responsibilities, grievance process, and so on. Government and church employers are exempt. 

Uniformed Services Employment and Reemployment Rights Act (USERRA) 

The Uniformed Services Employment and Reemployment Rights Act (USERRA) says that when an employee returns from military service or training, you are required to provide them with either their former job or a comparable job to what they had prior to military duty. 

Fair Credit Reporting Act (FCRA) 

Per the Fair Credit Reporting Act (FCRA), you must take certain steps prior to using consumer reports (including standard background checks) to make employment decisions. 

Jury System Improvements Act 

According to the Jury System Improvements Act, you cannot discharge, intimidate, or threaten to discharge an employee summoned to serve as a juror in federal court. 

Which federal laws apply to employers at the 15+ employee threshold? 

While each of the following laws is good business practice in general, compliance is only enforced for employers at the 15+ employee threshold. Unless otherwise specified, part-time and temporary employees are included in the head-count calculation.  

Americans with Disabilities Act (ADA) 

The Americans with Disabilities Act protects those with disabilities from being discriminated against for employment-related opportunities, from recruiting, hiring, job training, promotions, and pay, to social activities that are provided to staff members. Per the ADA, someone with a disability has the legal right to request an accommodation, and, barring an undue hardship, you must comply to provide equal access to employment. 

Title VII of the Civil Rights Act 

Title VII of the Civil Rights Act says you are prohibited from discriminating against employees based on race, color, religion, sex, or national origin. It also protects anyone reporting discrimination of any form from retaliation. 

Pregnancy Discrimination Act (PDA) 

The Pregnancy Discrimination Act (PDA) requires you to treat employees who are pregnant or recently went through childbirth the same as any other applicant or employee regarding their ability or inability to work. Unequal treatment is considered unlawful sex discrimination. 

Genetic Information Nondiscrimination Act (GINA) 

According to the Genetic Information Nondiscrimination Act (GINA), you cannot discriminate against employees or applicants based on their genetic information or family medical history. 

Which federal laws apply to employers at the 20+ employee threshold? 

The following laws only apply to your company if you have at least 20 employees. Unless otherwise specified, part-time and temporary employees are included in the head-count calculation. Here are the laws that apply to employers with 20+ employees in any industry affecting commerce. 

Age Discrimination in Employment Act (ADEA) 

Per the Age Discrimination in Employment Act (ADEA), you cannot discriminate against (or harass) employees or applicants age 40 or older simply due to their age. 

Consolidated Omnibus Budget Reconciliation Act (COBRA) 

COBRA is a sub-section to ERISA that requires employers to offer continuation coverage of employer-sponsored group health insurance to eligible employees and their dependents when coverage would otherwise be lost due to certain events such as termination. (Group health plans sponsored by churches are exempt.) 

Which federal laws apply to employers at the 50+ employee threshold? 

Companies with at least 50 employees have additional requirements beyond those deemed “good business practice.” Unless otherwise specified, part-time and temporary employees are included in the head-count calculation.  

Affordable Care Act (ACA) 

According to the Affordable Care Act (ACA), you must offer affordable, minimum value health coverage to full-time employees (and dependent children) or face potential penalties. If you had at least 50 full-time equivalent employees (not just a head count) during the lookback period, you must offer affordable, minimum value health coverage to full-time employees (and dependent children) or face potential penalties.  

Family and Medical Leave Act (FMLA) 

The Family and Medical Leave Act (FMLA) requires you to provide eligible employees with unpaid, job-protected leave for specified family and medical reasons. 

Which federal laws apply to employers at the 100+ employee threshold? 

Larger employers with at least 100 employees are obligated to comply with two additional laws. Unless otherwise specified, part-time and temporary employees are included in the head-count calculation. 

EEO-1 Report 

The EEO-1 Report requires you to annually submit employment data categorized by race/ethnicity, gender, and job category to the EEOC. State and local governments, primary and secondary school systems, institutions of higher learning and tax-exempt private membership clubs other than labor organizations are exempt. 

Worker Adjustment and Retraining Notification (WARN) Act 

Per the Worker Adjustment and Retraining Notification (WARN) Act, if your plant closes or you have a mass layoff, you are required to provide a 60-day advance written notice to affected employees. Regular federal, state and local government entities that provide public services are NOT covered. 

If you are a federal contractor, additional compliance requirements may apply. 

Understanding Employee Counting 

Businesses must count employees within a specific time period to determine their compliance with various federal and state employment laws. This process is essential for determining employer duties under specific legislation. Accurate employee counting helps employers avoid governmental sanctions and litigations for noncompliance with the law. It also ensures that employees are aware of their rights under the law, such as minimum wage, overtime pay, and leave benefits. 

I don't currently have the required employee threshold count, but I have in the past. What should I do? 

If your company had the minimum number of employees for each working day in each of 20 or more calendar weeks during the current or preceding calendar year, your company meets the threshold. Part-time and temporary employees are included in the head-count calculation, except where specified otherwise. This includes considerations for seasonal agricultural workers who may affect your employee count during peak seasons. 

For more information, please contact your certified HR expert. 

Record-Keeping and Penalties 

Employers are required to maintain accurate and complete employee records, including personnel files, payroll records, and benefits information. These records must be retained for a certain period of time, as mandated by law. Failure to maintain accurate and complete records can result in penalties, fines, and lawsuits.  

Businesses that receive government contracts or grants may be subject to additional employment laws and regulations. Please contact your certified HR expert for more details. 

How do I stay compliant with all these federal laws and workplace discrimination regulations? 

While this feels like a lot to track without even touching on state or local laws, our HR experts are here to ensure your company remains compliant through every stage of its growth. Compliance is not only being aware of applicable rules and regulations, but properly implementing appropriate policies and reasonable accommodations and providing a safe environment for all employees.  

For more information or to request a free quote, book a consultation and our business development team will contact you soon.