Ah, my favorite topic: SIZE… it really does matter!
(Get your mind out of the gutter!)
Originally posted in 2007, the size of your business has become a regular speaking point for me. Even I was surprised by the number of employment regulations I needed to be aware of when I opened HR Resolutions in 2005, and I didn’t even have any employees! If the HR pro wasn’t aware of all the small employer regulations, how should the expert widget maker who goes out on their own be expected to know? Take heed, it really can hurt you if you’re not at least aware of the areas you need to be watching.
Even the smallest employer has ten employment regulations to follow— even with only one employee. Move up to 15 employees and you have a few more laws/regulations to add to the mix, including Title VII of the Civil Rights Act of 1964. You know that one…it’s the basis for non-discrimination laws and prohibits discrimination based on “protected classes” such as race, creed, color, gender, and national origin. It also defines sexual and other unlawful harassment and is responsible for the Equal Employment Opportunity Commission.
At 20 employees, please add two more to your list, particularly COBRA which requires you to provide terminated employees (and other classes or participants) the right to continue their health care benefits. Get to 50 employees and you’ve almost got the whole “nine yards” as they say. At this level, you need to be providing Family Medical Leave and, if you have government contracts, completing an Affirmative Action Plan. Finally, at 100 employees, you need to be sure to “warn” your employees if you plan on any significant reductions in your workforce.
Oh, and don’t forget about State regulations. For example, the PA Human Relations Act (PHRA) applies to employers with as few as four employees and covers discrimination in PA. You can get down to the city/township, as well. Philadelphia “bans the box” and does not allow employers to ask about convictions on applications!
So, as you see, the size of your company really does matter! Make sure you have the right size human resource expertise to help you maneuver through the appropriate regulations for your specific needs.