What Changes as Your Company Grows
February 20, 2024
By: Paige McAllister, SPHR, SHRM-SCP
Congratulations! Your company has grown, business is booming and you have hired more employees to help you meet the new demand. Not every company can say they are having that success.
However, as you add employees, the number of employment regulations your company falls under changes as well. So, while you are managing additional payroll, scheduling and benefit responsibilities, be sure to keep these laws and their regulatory obligations in mind.
Please note: While this article focuses on federal laws, many state and local laws are also based on company size, so be sure to research those as well.
One or More Employees
Fair Labor Standards Act (FLSA): Often referred to as the “wage-and-hour law,” FLSA defines key concepts including employees and independent contractors; exempt and nonexempt; overtime; minimum wage; nursing mothers; compensable and noncompensable time (e.g., breaks, and sleeping); child labor; payday requirements; and recordkeeping.
Immigration Reform and Control Act (IRCA): Establishes requirement to only employ workers who are authorized to work in the U.S., to verify eligibility using the Form I-9, and recordkeeping requirements.
Occupational Safety and Health Act (OSHA): Establishes the requirement to provide a safe and healthy workplace for employees.
Uniformed Services Employment and Reemployment Rights Act (USERRA): Prohibits discrimination against any employee or applicant for their current or past military service and defines requirements for providing leave or rehiring employees who return from extended military service.
National Labor Relations Act (NLRA): Protects employees’ rights to form a union or take other action in order to improve the working conditions for themselves or others.
Equal Pay Act (EPA): Requires all employers to provide equal compensation to men and women who perform equal work.
Employment Retirement Income Security Act (ERISA): Establishes minimum standards for employee benefit plans (e.g., retirement, 401(k) and health insurance) and required communication to employees.
Employee Polygraph Protection Act (EPPA): Prohibits most employers from subjecting employees or applicants to a polygraph.
Consumer Credit Protections Act (CCPA): Prohibits employers discharging employees for a wage garnishment and limits the max amount a wage garnishment can be.
Fair and Accurate Credit Transactions Act (FACT): Establishes protections against identity theft and how employee and applicant personal data is handled.
Health Insurance Portability and Accountability Act (HIPAA): Establishes requirement to keep employees’ health information confidential and that employers cannot receive information from health care providers without permission.
Jury Systems Improvement Act: Prohibits employers from taking adverse employment action against an employee summoned to federal jury duty service.
15 or More Employees
Title VII of the Civil Rights Act of 1964 (Title VII): Establishes protections for employees and applicants against discrimination or adverse employment action based on their being in a protected group including race, color, religion, sex or national origin.
Americans with Disabilities Act (ADA)/Americans with Disabilities Act Amendment Act (ADAAA): Establishes protections for employees and applicants with a real or perceived disability that limits a major life function from discrimination in the workplace or other employment practices; defines “reasonable accommodation” and its process.
Pregnancy Discrimination Act (PDA): Establishes protections for employees and applicants due to their pregnancy, childbirth or pregnancy-related disability.
Genetic Information Nondiscrimination Act (GINA): Prohibits employers from using an employee’s or applicant’s genetic information in employment decisions.
20 or More Employees
Age Discrimination in Employment Act (ADEA): Establishes protections for employees and applicants against discrimination in employment based on being over 40 years of age.
Consolidated Omnibus Budget Reconciliation Act (COBRA): Requires employer-sponsored group health plans to offer options to eligible employees and/or their dependents for continuing coverage when their coverage would otherwise end (e.g., due to termination, divorce, reduced hours, etc.)
50 or More Employees – All Employers
Family and Medical Leave Act (FMLA): Establishes an up to 12- or 26-week job and benefit protection for eligible employees needing leave for a covered reason.
Affordable Care Act (ACA) (aka Obamacare): Establishes requirement to offer full-time employees qualified health insurance benefits or pay a penalty; establishes recordkeeping and reporting requirements.
50 or More Employees – Employers With $50,000 or More in Federal Contracts
EEO-1 Report as required under the Title VII of the Civil Rights Act of 1964 (Title VII): Requires covered federal contractors and subcontractors with 50 or more employees to file an annual report with the Equal Employment Opportunity Commission (EEOC) providing a breakdown of their employees’ demographics data (race/ethnicity and gender) by job category.
Affirmative Action Plan (AAP) as required under Executive Order 11246 and Section 503 of the Rehabilitation Act of 1973: Requires covered employers to create programs to ensure fair employment practices and opportunities for employees in protected groups (including race, color, religion, sex, sexual orientation, national origin, age, disability, genetic information, veteran status or other factors); requires covered employers to file an annual AAP report to detail the demographics of their workforce as compared with the demographics in their local region as well as their plans and initiatives to increase employment and promotion of employees in under-represented groups.
100 or More Employees
Workers Adjustment and Retraining Notification Act (WARN ACT): Establishes requirement for employers to provide 60-day advanced notice to employees who will be impacted by a covered closing or mass layoff.
EEO-1 Report as required under Title VII of the Civil Rights Act of 1964 (Title VII): Requires employers with one hundred or more employees to file an annual report with the Equal Employment Opportunity Commission (EEOC) providing a breakdown of their employees’ demographics data (race/ethnicity and gender) by job category.
50 or More Employees – Employers With $150,000 or More in Federal Contracts
VEVRAA Affirmative Action Plan (AAP) as required under Vietnam Era Veterans’ Readjustment Assistance ACT (VEVRAA): Requires covered employers to create programs to ensure fair employment practices and opportunities for employees who are protected veterans: requires covered employers to file an annual VEVRAA AAP report to detail the demographics of their workforce and their initiatives to increase employment and promotion of employees who are veterans.