Did you know that as you grow and hire new employees different laws may apply to you?
These laws can affect how you pay, the benefits you need to offer, and even change the way leave works for your team.
Let’s break down what laws apply at each employee count and what they mean!
Having one employee means you have legal & tax obligations, but certain major laws start at 15, 20, 50, and 100 employees.
As soon as you have a single employee, you are considered an employer based on federal law.
Fair Labor Standards Act (FLSA)
Guideline of rules for minimum wage, overtime pay, child labor laws, and equal pay.
I-9 Form Verification
Verifies that each employee you bring on is legally allowed to work in the U.S. You need to verify identity and work eligibility within 3 business days of a hire.
Occupational Safety and Health Act (OSHA)
You need to provide a safe workplace - this includes proper training, safety equipment and reporting injuries & accidents.
🔹 Megapay Tip: Keep organized time records and I-9 forms. Megapay’s automated timekeeping helps you keep track of hours and stay compliant to minimize errors.
Title VII of the Civil Rights Act
It’s illegal to discriminate when hiring, firing, or giving promotions based on race, color, religion, gender, or national origin.
Americans with Disabilities Act (ADA)
Reasonable accommodations (like modified schedules or equipment) must be given for employees with disabilities.
🔹 Do you have an employee handbook? It’s a good idea to put anti-harassment and equal opportunity policies in there. While you’re at it, here are other policies to include!
Consolidated Omnibus Budget Reconciliation Act (COBRA)
If you offer health insurance, you’ll need to provide the option for continuous coverage for a limited time once an employee leaves. This includes their family and is typically at their own expense.
Age Discrimination in Employment Act (ADEA)
Workers that are older than 40 are protected from discrimination in hiring, pay, and termination.
🔹 When an employee leaves, COBRA notices should be given right away. Not sure where to start? Megapay has an HR team ready at your service!
Family and Medical Leave Act (FMLA)
Employees can get up to 12 weeks of unpaid leave for events like the birth of a child or taking care of a family member with a serious health condition.
👉 If you think you're dealing with FMLA abuse - here's what you should do!
Affordable Care Act (ACA)
One you hit 50 employees, you must offer health insurance to your employees.
EEO-1 Reporting
Requires certain employers to submit annual reports on employee demographics. This helps to ensure there is fair hiring and promotions.
Worker Adjustment and Retraining Notification Act (WARN Act)
There must be 60 days notice to employees affected by mass layoffs if 50 or more employees are affected.
EEO Expanded Reporting
Employee demographics must be shared with the Equal Employment Opportunity Commission (EEOC).
New York
New York has some of the most comprehensive labor and employment regulations in the country and many of them apply even to very small businesses.
Paid Family Leave (PFL)
If you are a NY employer, you must offer Paid Family Leave. This can be collected through payroll deductions or even an insurance plan. This allows your employees to take paid time off to bond with a new child, care for an ill family member, or support loved ones during military deployment.
Sexual Harassment Training
You are required to provide annual sexual harassment prevention training to every employee.
Minimum Wage and Overtime
The federal government has a minimum wage, but states have their own as well. They differ from state to state and sometimes even by region. Here’s Minimum Wage updates for 2025.
Paid Sick Leave (1+ Employees)
All employees qualify for paid sick leave. They can earn up to 40 hours each year and can accrue these hours or you can give the full balance at the beginning of each year.
Paid Family Leave (Family Leave Insurance or FLI)
Family Leave Insurance (FLI) gives employees partial pay to take time off to bond with a new baby or care for sick family. This is funded by employee payroll deductions and allows up to 12 weeks of leave each year. This falls under New Jersey Family Leave Act (NJFLA) if you have 30 or more employees.
Pay Transparency Law (10+ Employees)
Effective June 1, 2025, all job postings must include pay ranges and a summary of benefits!
Growing your team is exciting, but it also brings you more responsibilities! Stay proactive and keep a log of your headcount, keep your handbook up-to-date, and make sure your policies meet state and federal law.
Megapay can help by making the process simple. We’ll handle the time tracking, leave management, and reporting. You can handle the growth!