Small Business Compliance Thresholds

Federal regulations can be terribly confusing, particularly because they often have different definitions for the size of a “small” business that is exempt from the law. If you operate a small business, use the following list to make sure you’re not spending time and money complying with laws that only apply to larger businesses. Many companies find it beneficial to partner with various HR Outsourcing firms to ensure they are in full compliance as the business grows. Some of theses providers will take FULL liability for the compliance related requirements. Penalties for non-compliance are difficult for a small business to endure, so it is certainly worth it to know where you may be falling short.

PREGNANCY DISCRIMINATION ACT (PDA):

Prohibits discrimination on the basis of pregnancy, childbirth or any other related medical issues.

• Who is covered: Employers with 15 or more workers.
• Governing Agency to contact: EEOC

AMERICANS WITH DISABILITIES ACT (ADA):

Prohibits job discrimination of individuals with disabilities (Title I) and requires public facilities to be accessible to the disabled (Title III).

• Who is covered: Employers with 15 or more workers (Title I) and any business that provides facilities open to the public. (Title III).

• Governing Agency to contact: EEOC

CIVIL RIGHTS ACT OF 1964 (TITLE VII):

Prohibits hiring, discharge or wage discrimination based on race, religion, sex or national origin.

• Who is covered: Employers with 15 or more workers.
• Governing Agency to contact: EEOC

AGE DISCRIMINATION IN EMPLOYMENT ACT (ADEA):

Prohibits employers from discriminating against workers over age 40 in hiring, discharge, wages or benefits.

• Who is covered: Employers with 20 or more workers.
• Governing Agency to contact: EEOC

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT (COBRA):

Requires employers to offer continuing health care coverage to terminated employees and certain spouses and dependents for a specified period.

• Who is covered: Employers of 20 or more workers that offer health coverage.
• Governing Agency to contact: Department of Labor

FAMILY AND MEDICAL LEAVE ACT (FMLA):

Allows workers to take up to 12 weeks per year of job protected time off for the birth of a child or to care for certain self or family member with “serious” illness.

• Who is covered: Employers with 50 or more workers.
• Governing Agency to contact: Department of Labor

WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT (WARN):

Requires companies to give at least 60 days notice of closings and mass layoffs.

• Who is covered: Most employers with more than 100 workers.
• Governing Agency to contact: Department of Labor

EMPLOYEE POLYGRAPH PROTECTION ACT:

Restricts occasions when private employers can use lie detectors in hiring or investigations.

• Who is covered: All private employers.
• Governing Agency to contact: Department of Labor

FEDERAL TRADE COMMISSION ACT (FTCA):

Prohibits “unfair methods of competition” and “unfair or deceptive” business practices.

• Who is covered: Almost all businesses.
• Governing Agency to contact: Federal Trade Commission

FAIR LABOR STANDARDS ACT (FLSA):

Establishes minimum wage, overtime pay, record keeping and child labor standards.

• Who is covered: All employers.
• Governing Agency to contact: Department of Labor

OCCUPATIONAL SAFETY AND HEALTH ACT:

Requires employers to run a business free from recognized hazards and keep records on injuries,illnesses.

• Who is covered: Almost all businesses. Employers are exempt from programmed inspections if they have 10 or fewer employees.
• Governing Agency to contact: Occupational Safety and Health Administration

NATIONAL LABOR RELATIONS ACT (NLRA):

Prevents discrimination against workers who participate in union activity or band together to protect work conditions.

• Who is covered: Almost all employers and unions.
• Governing Agency to contact: National Labor Relations Board

EQUAL PAY ACT (EPA):

Requires employers to pay equal wages to men and women in most conditions.

• Who is covered: Employers with at least one worker.
• Governing Agency to contact: EEOC

IMMIGRATION REFORM AND CONTROL ACT:

Requires you to review applicant’s work eligibility documents.

• Who is covered: Employer with at least one worker.
• Governing Agency to contact: Bureau of Citizenship and Immigration Services

Ref: www.dol.gov

Why You Should Offer Your Employees Health Insurance

Do you own or manage a small business?

Are you wondering if you really need to offer health insurance to your employees? Are you thinking that many small businesses do not offer any health insurance and the government doesn’t require it so it is really worth it?

If you answered yes to any of these questions, you are not alone. However, it is beneficial to both you and your employees to have small business health insurance.

Here’s why:
1. You want to make your employees happy. You value the people that work for you each day and want to offer them affordable health insurance as a reward.
2. You want to hire and keep the best employees. The fact that a company offers health insurance may be a make it or break it factor when a new employee is choosing between possible jobs or a current employee is deciding whether to stay at a job or look for a new one.
3. Tax deductions. Did you know that 100% of insurance premiums are a business tax deduction?
4. Increased productivity and decrease in absenteeism. Employees that know they will be covered if anything should happen to them are more likely to attend work every day and work to
their potential. This may occur because preventative care measures are being taken by employees who have health insurance, thus avoiding potentially more serious health problems.
5. Pre-tax premium contributions. When employees access group health insurance through an employer, their share of the premium is taken out of their paycheck before taxes are taken out.
This is more beneficial to an individual than paying with after-tax money, which is what they do if they have to purchase individual health insurance on their own.
6. Cheaper group rates. Group rate health insurance can be much less expensive than individual health insurance. Plan coverage can also be much more comprehensive.
7. HAS’s. Health Savings Accounts offer a flexible way for business owners to offer health insurance while keeping their costs at a minimum.
Take another look at your company and your employees. Decide what your specific needs are and find a plan that fits those needs. Insurance companies offer plans for small businesses as small as 2
individuals and as large as 50 employees. Whatever your reason is for looking into health insurance for your company, contact a trusted advisor in this area to learn more.