Historically, the number of employees at a particular company determined which state and federal employment laws applied to that company. Smaller employers were often exempted to avoid overburdening them with costly compliance. Minnesota, however, has recently passed new employment laws, and amended others, that do away with employee thresholds. As such, the emerging trend is to strip protection for smaller companies as many laws and regulations now apply to all employers, even those with only one employee. So, here is a list of some of the applicable employment laws by the numbers:
1 Employee
- Employers need to request an employer I.D. number, obtain worker’s compensation and unemployment insurance, and should draft a sexual harassment policy.
- The Minnesota Human Rights Act applies to any size employer. Minn. Stat. § 363A.03, subd. 16.
- The Minnesota Whistleblower statute applies to any size employer. Minn. Stat. § 181.931, subd. 3.
- The Minnesota Drug Testing statute applies to any size employer. Minn. Stat. § 181.950, subd. 7.
- Minnesota’s Earned Sick and Safe Leave Act applies to any size employer. See Minn. Stat. §§ 181.032 and 181.9445-9448.
- The Minnesota Personnel Record Statute applies to any size employer. Minn. Stat. § 181.960, subd. 3. (Until 2024 this law only applied to employers with 20 or more employees).
- The Minnesota Parental and Pregnancy Leave Act applies to any size employer. Minn. Stat. § 181.940 (Until 2023 this law only applied to employers with 21 or more employees).
- The Minnesota Paid Family and Medical Leave Act, which takes effect on January 1, 2026, will apply to any size employer.
6 Employees
- Six employees is the threshold to be considered a “small” business under the St. Paul Minimum Wage Ordinance. Minimum wage requirements vary based on the size of the employer in St. Paul.
10 Employees
- Employers with 10 or more employees must maintain OSHA Forms 300 and 300A regarding workplace injuries.
15 Employees
- Title VII of the Civil Rights Act, 42 U.S.C. § 2000E.
- Pregnancy Discrimination Act (“PDA”).
- The Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12111(5)(A).
- Genetic Information Nondiscrimination Act (“GINA”).
- Minnesota Workers’ Compensation Retaliation, pursuant to Minn. Stat. § 176.82, subd. 2.
20 Employees
- Age Discrimination in Employment Act (“ADEA”) 29 U.S.C. § 630(b).
- Consolidated Omnibus Budget Reconciliation Act (“COBRA”).
- American Recovery and Reinvestment Act of 2009 (“ARRA”) (requires companies with more than 20 employees to provide a subsidy for COBRA premiums of 65 percent for nine months).
- Minnesota Bone Marrow Donation Leave and Organ Donation Leave statutes, Minn. Stat. § 181.945, subd. (c) and Minn. Stat. § 181.9456, subd. 1 (c).
30 Employees
- Pay Transparency Act. Minn. Stat. § 181.173 (becomes effective January 1, 2025). This new Minnesota law requires employers with 30 or more employees to include wage and benefit information in job postings. Click here to learn more.
50 Employees
- Patient Protection and Affordable Care Act (“PPACA”) or Affordable Care Act (“ACA”) (requires employers to offer employee health insurance).
- Family Medical Leave Act (“FMLA”), 29 U.S.C. § 2611(4)(A)(i).
100 Employees
- Worker Adjustment and Retraining Notification (“WARN”) Act. 29 U.S.C. § 2101(a).
- Employers with at least 100 employees are required to file an EEO-1 Report every year.
- Employers with at least 101 employees are considered a “large” business under both the St. Paul Minimum Wage Ordinance and the Minneapolis Minimum Wage Ordinance.
- Most employers should consider bringing on one full-time Human Resources professional for every 100 employees.
200 Employees
- At 200 employees, the PPACA requires employers to enroll employees automatically into health insurance plans offered by the employer.
10,001 Employees
- Employers with 10,001 or more employees are considered “Macro” businesses under the under the St. Paul Minimum Wage Statute.
Revenue-Based Employment Laws
- Under Minnesota’s Minimum Wage Law, different rates apply to “large” and “small” employers. A “large” employer is an enterprise with gross revenues of $500,000 or more. A “small” employer is an enterprise with gross revenues of less than $500,000.
- The Fair Labor Standards Act applies to enterprises with two or more employees and an annual dollar volume of sales or business done of at least $500,000.
Summary
Employment law compliance for small employers is becoming more burdensome than ever. With HR and employment laws changing so quickly, it is important for businesses to take a look at the numbers and double check that they are in compliance with applicable laws and rules. Please reach out to John Ella or the rest of our HR & Employment Team at FMJ for help with questions, strategies, compliance audits, and anything else you may need.
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