Expanding a company can be an exciting and stressful time. If you’re nearing the 15-employee mark, it is important to take a step back and understand the law and how it affects your company.
A company with 15-19 employees is subject to Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Genetic Information Act, Pregnancy Discrimination Act, and Texas age discrimination laws.
Companies with 20 plus employees are also subject to the previously listed laws as well as the federal Age Discrimination in Employment Act and the Consolidated Budget Reconciliation Act, or COBRA. Texas law applies age discrimination to companies with 15 or more employees.
The Family Medical Leave Act and the Affordable Care Act, also known as “Obamacare,” apply to companies with 50 employees or more.
First, Title VII, as it is commonly known, prohibit an employer from discriminating against someone based on race, color, religion, sex and national origin. Employers are already prohibited from discriminating based on race, color and national origin under previous laws. So, Title VII reaffirms those ideas as well as prohibiting discrimination based on religion or sex.
Next, the Americans with Disabilities Act prevents discrimination against employees because of disability or a perceived disability. Employers are also required to provide reasonable accommodations to those affected by a disability.
Also, the Genetic information Act forbids employers from discriminating against someone who has a predisposition to developing a disease in the future.
For pregnant women, employers are to treat them the same as you would treat any other employee with a short-term disability under the Pregnancy Discrimination Act. This means that if a company routinely provides light duty work or alternative assignments, then the company must do the same for a pregnant woman if she is unable to perform her regular duties.
Employers also cannot discriminate against someone due to age. It is important to remember that while the federal law applies to companies with more than 20 employees Texas laws prohibit age discrimination with companies with 15 or more employees.
COBRA requires employers to continue health coverage after termination if the company provides group health coverage for employees. Again, COBRA applies to companies with 20 or more employees.
Companies with 50 employees or more are subject to the Family Medical Leave Act, or FMLA. Under FMLA, covered employees are allowed to take up to 12 workweeks of leave in a 12-month period. The time does not have to be taken all at once. Leave that qualifies under FMLA includes:
• Birth or adoption of a child
• Care for a spouse, parent, or child who has a serious health condition;
• A serious health condition that makes the employee unable to perform the essential functions of the job
• An emergency arising out of a spouse, child, or parent on active duty in the military.
Finally, Obamacare requires employers with more than 50 employees to have a group health insurance. There are specific rules under Obamacare and FMLA to calculate how many employees a company has and who qualifies as an employee under the respective laws’ definition. If you think your company is nearing 50 employees or plans to in the future, it is important to follow these rules closely to determine how many employees a company has under each law.
The Takeaway:
Before you reach 15 or more employees, you need to know your rights and your employees rights to best protect yourself.
Checklist:
If a company has 15 employees it cannot discriminate based on someone’s:
- Race
- Religion
- Color
- Sex
- National Origin
- Disability
- Genetic predisposition to future disease
- Pregnancy
- Age (20 employees on a federal level, 15 in Texas)
If a company has 20 employees it must also follow:
- Family Medical Leave act
- Affordable Care Act (Obamacare)
– The Business Team
Scott | Josh | Jeremy
The Allen Firm, PC
181 S. Graham Street | Stephenville, Texas 76401
Ph: 254.965.3185 | Fax: 254.965.6539