Employment law feels designed for companies with legal departments — but most of it applies to you too, and “we’re too small to know” isn’t a defense. The good news: obligations scale with headcount, so you can focus on what actually applies at your size. Here’s the checklist, organized the way the law is: by employee count.
What applies at your size.
| Employees | Key obligations kick in |
|---|---|
| 1+ | Minimum wage, overtime, payroll taxes, workers’ comp (most states), OSHA safety, I-9 verification, required labor law posters |
| 15+ | Federal anti-discrimination laws (Title VII, ADA, GINA) |
| 20+ | Age Discrimination in Employment Act (40+) |
| 50+ | FMLA leave (50 within 75 miles), ACA employer mandate (50+ full-time equivalents) |
| 100+ | EEO-1 reporting |
States often set lower thresholds than federal law — your state may apply anti-discrimination or leave laws at 5 or 10 employees. Always check both layers.
Required posters.
If you have even one employee, you almost certainly must display federal and state labor law posters (minimum wage, EEO, FMLA where applicable, workers’ comp, payday notice) where employees can see them — with electronic delivery rules for remote workers. Our labor law poster guide lists exactly which ones you need.
Wage and hour.
Federal minimum wage is $7.25/hour, but most states set it higher — you owe whichever is highest. Overtime rules, child labor restrictions, and final-paycheck deadlines all live here too. Review our overtime pay rules and confirm each role’s exempt status.
Leave laws.
Federal FMLA gives eligible employees at 50+ employee companies up to 12 weeks of unpaid job-protected leave. But states add their own layers: paid sick leave mandates, paid family leave programs, and voting/jury-duty leave exist in many states with much lower thresholds. Map every leave law in your state — this is the area where small businesses are most often surprised.
Anti-discrimination and harassment.
At 15+ employees, federal law bars decisions based on race, color, religion, sex, national origin, disability, and genetic information (20+ for age). Regardless of size: have a written anti-harassment policy with a complaint procedure that bypasses the direct manager, train your managers on it, and take every complaint seriously. Put it in your handbook.
Workplace safety (OSHA).
OSHA covers nearly every private employer. You need a safe workplace, hazard communication where chemicals are present, injury/illness recordkeeping (some small low-hazard employers are partially exempt), and an emergency action plan. Depending on your occupancy, fire-code safety drills may be legally required on a set schedule.
Hiring compliance.
Keep hiring legal from the start: lawful interview questions (see illegal interview questions), I-9 employment eligibility verification for every hire (keep I-9s separate from personnel files), and background checks that comply with the FCRA and your state’s ban-the-box rules.
Recordkeeping.
Keep payroll records 3 years (FLSA), I-9s for 3 years after hire or 1 year after termination (whichever is later), and personnel/tax records per IRS and state rules. Good records are your best defense in any dispute — if it isn’t documented, it didn’t happen.
Your annual compliance calendar.
Once a year, on a fixed date: verify posters are current, review the handbook for law changes, confirm worker classifications, audit payroll tax filings, check state leave-law updates, and renew workers’ comp. Put it on the calendar now — compliance done annually beats compliance done after a complaint.
FAQ.
Do employment laws apply if all my workers are part-time?
Yes — most employment laws count part-time employees toward thresholds and protect them equally.
What happens if I ignore a compliance requirement?
It depends on the law: back pay, fines, lawsuits, and in some cases personal liability for owners. Wage violations in particular are enforced aggressively.
Should I have an employment attorney?
For day-to-day questions, these guides go far. Before you write a handbook, sign a non-compete, or fire someone in a legally sensitive situation — yes, get one. A one-hour review is cheap insurance.
This is general information, not legal advice. Laws change and states differ — consult an employment attorney for your situation.