Benefits and Protections

Employers face a number of federal and state (and in some cases local) rules concerning benefits and protections for employees. Small employers are exempt from some, but not all, such rules. Here is a roundup of federal rules that apply to all employers, regardless of the number of employees on the payroll, and rules from which small employers may be exempt (depending on the number of their employees).

Rules for all employers
Immigration Reform and Control Act (IRCA). This law prohibits employers from hiring illegal aliens and requires that work eligibility status be verified before a job begins. It also prohibits discrimination against legal aliens with respect to hiring, recruiting and firing. Use Form I-9 from the U.S. Citizenship and Immigration Services for this purpose (http://uscis.gov/graphics/formsfee/forms/files/i-9.pdf.)

Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). This law prohibits discrimination based on an employee’s or job applicant’s past, current or future military obligations. It mandates that employers reinstate to their former positions employees who complete their military duty with an honorable discharge.

Rules exempting small employers
Minimum wage and overtime rules/ The Fair Labor Standards Act (FLSA), which sets minimum wage and overtime requirements, applies only to employers with at least two employees engaged in interstate commerce. Similarly, the Equal Pay Act (EPA), which mandates equal wages to male and female employees performing substantially the same work, applies to employers covered under the FLSA. However, state law on wage and overtime rules usually covers all employees.

Employment discrimination laws. Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, sex and national origin, applies only to employers with at least 15 employees. But other nondiscrimination rules apply to all employers, including Section 1981, which prohibits discrimination based on race or ethnicity.

Age discrimination in Employment Act (ADEA). This law, which prohibits discrimination based on the fact that an employee or job applicant is age 40 or older, only applies to employers with at least 20 employees.

Americans with Disabilities Act (ADA). This law, which prohibits discrimination against someone with a disability, only applies to employers with at least 15 employees.