Growing your team is an exciting milestone for any small business owner, but adding employees can also bring new legal responsibilities. As your workforce expands, federal employment laws begin to apply at specific employee-count thresholds. These laws create new requirements for how you hire, manage, accommodate, and treat your employees.
Once your business meets the applicable 15-employee threshold, several key federal anti-discrimination and accommodation laws enforced by the U.S. Equal Employment Opportunity Commission may apply. EEOC coverage generally requires an employer to have 15 or more employees for at least 20 calendar weeks in the current or preceding year. Understanding these requirements before you reach the 15-employee threshold can help you build sound HR practices to prevent costly compliance mistakes.
What HR Laws Apply When Your Business Reaches 15 Employees?
If you have 15+ employees, your business is covered by the laws that prohibit discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, or transgender status), national origin, disability, and genetic information (including family medical history). You are also covered by the law that requires employers to provide equal pay for equal work.
Many core federal equal employment opportunity laws use a 15-employee threshold for coverage:
- Title VII of the Civil Rights Act of 1964
- Americans with Disabilities Act (ADA)
- Genetic Information Nondiscrimination Act (GINA)
- Pregnant Workers Fairness Act (PWFA)
In addition, many states have their own employment laws that apply to businesses with fewer employees so it is important for growing employers to understand both federal and state requirements.
Your Legal Responsibilities If Federal Employment Anti-Discrimination Laws Apply to Your Business
Once federal employment anti-discrimination laws apply to your business, you must take specific steps to comply with the law. These laws can affect everything from how you pay and accommodate employees to how you handle complaints, maintain records, and prevent discrimination and retaliation.
Read on for an overview of your key legal responsibilities once your business employs at least 15 employees:
- Â Â Equal Pay for Equal Work
Federal law generally requires employers to provide equal pay to male and female employees who perform substantially equal work in the same workplace, unless a lawful exception justifies the difference.
- Â Â Don’t Discriminate/Harass Because of Race, Color, Religion, Sex, National Origin, Disability or Genetic Information
A business cannot discriminate against or harass applicants, employees or former employees for any of the following reasons: race, color, religion, sex (including pregnancy, sexual orientation, or transgender status), national origin, disability, or genetic information (including family medical history).
Note: Age discrimination rules (40 or older) generally apply for employers with 20 or more employees.
- Â Â Policies/Practices with Negative Effect on Race, Color, Religion, Sex, National Origin or Disabilities
You cannot use employment policies or practices that have a negative effect on applicants or employees who are a particular race, color, religion, sex, or national origin or applicants or employees with disabilities unless the policy or practice is job-related and necessary for the operation of the business.
- Â Â Provide Required Reasonable Accommodations
You may be required to provide reasonable accommodations (changes to the way things are normally done at work) for any of the following reasons: an applicant’s or employee’s religious beliefs, disability, or known limitations related to pregnancy, childbirth, or related medical conditions.
- Â Â Prohibited Requests for Medical or Genetic Information
In general, you cannot request medical or genetic information from applicants. You may request medical or genetic information from employees only in limited circumstances.
If you legally obtain medical or genetic information, the information must be kept confidential, with very limited exceptions, and in a separate medical file.
- Â Â Don’t Retaliate
You cannot retaliate against an applicant, employee, or former employee for opposing discrimination, reporting discrimination, or participating in a discrimination investigation or lawsuit.
- Â Â Inform Employees About the Laws
Employers covered by federal employment discrimination laws must display a poster explaining workplace discrimination laws and employee rights under these laws. The poster should be placed in a location where employees and applicants can easily see it.
- Â Â Retain Employment Records
You must retain any employment records, including applications, personnel records, payroll information, and records related to hiring, promotions, pay, and termination, for the period required by law.
Stay Compliant with all Relevant Employment Laws with Seay HR
Seay HR provides a broad range of HR services designed to support your business’s growth and ensure compliance with all state and federal employment regulations. This work reduces financial and legal risks in these areas.
If your business is growing, keeping up with changing employment laws and new requirements can become increasingly challenging. Seay HR can help you stay on top of the laws that apply to your business as your workforce expands, while providing practical HR guidance for hiring, employee management, workplace policies, and compliance. With the right HR support in place, you can focus on growing your business while having greater confidence that your employment practices are on solid legal ground.Â
We’re ready to help! Contact us today to learn more about how we can support your business.
Please note: This article is for informational purposes only and does not constitute legal or professional advice. Seay HR makes no representations or warranties, express or implied, regarding the accuracy, completeness, or applicability of the information contained herein.
Seay HR disclaims all liability for any actions taken or not taken based on the information in this article. Readers are solely responsible for their own interpretation and use of this information.
