CavnessHR Product/Market Fit Validation and Tech Platform Validation

To help us with our product market fit and tech platform validation. We are providing Employee Handbooks and HR policies at no cost to companies with 49 or fewer people in the city of Seattle.

Email me at jasoncavness@CavnessHR.com if you are interested in this.

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CavnessHR delivers HR companies with 49 or fewer people with our HR platform and by providing you access to your own HRBP.

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HR Laws for Small Business with 49 or fewer employees

If you have at least one employee, the following HR laws apply to you.  Drug-Free Workplace Act:  The Drug-Free Workplace Act of 1988 only applies to federal grant recipients and federal contractors with a contract for more than $100,000. 

Drug-Free Workplace Requirements

Generally, it requires that covered employers: adopt a drug-free workplace policy; and establish a drug-free awareness program.

Employers faced with alcohol and drug use in the workplace often consider employee and applicant drug testing as a way to reduce safety risks and avoid other problems caused by employee drug use. Employers that use drug testing should be aware of the many laws and regulations governing safety, employee privacy, and disability. The issues involved include both legally mandated and voluntary drug-free workplace programs, discrimination and accommodation, testing, and special requirements for the transportation industry.

Electronic Communications Privacy Act (ECPA):  Prohibits intentional interceptions of wire, oral, or electronic communications.

https://it.ojp.gov/privacyliberty/authorities/statutes/1285

Employee Polygraph Protection Act:  Forbids most employers to use lie detectors. Poster required.

https://www.dol.gov/agencies/whd/polygraph

Employee Retirement Income Security Act (ERISA):  Regulates benefits through a complex series of rules covering pensions, profit-sharing, stock bonus, and most insurance and other benefit plans.

What is ERISA? The Employee Retirement Income Security Act (ERISA) was enacted to ensure that employees receive the pension and other benefits promised by their employers. ERISA also incorporates and is tied to Internal Revenue Code (IRC) provisions designed to encourage employers to provide retirement and other benefits to their employees. Most provisions of ERISA and the IRC are intended to ensure that tax-favored pension plans do not favor the highest-paid employees over rank-and-file employees. 

ERISA has a complex series of rules that cover pension, profit-sharing, stock bonus, and most “welfare benefit plans,” such as health and life insurance. ERISA has created a single federal standard for employee benefits, and it supersedes almost all state laws that affect employee benefit plans. An employer's responsibilities under ERISA vary depending on the type of plan involved.

https://www.dol.gov/general/topic/retirement/erisa

Military Leave -Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994:  Prohibits discrimination against those who serve in the military; mandates military leave of absence. 

With the increased use of reserve and National Guard troops in full-time military service, employers must frequently deal with the requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 when those employees are called to active services and when they return.

USERRA governs the leave and reinstatement requirements for military personnel. The law contains specific requirements for protected leave, rules for benefits employees are entitled to during military leave, and the requirements for reinstatement back in the civilian workforce.

https://www.dol.gov/vets/programs/userra/userra_fs.htm

Employee Right to Know Laws (Hazardous Chemicals in Workplace): A disclosure rule that requires private sector employers with hazardous substances in their workplace to develop a comprehensive hazard communication program to train and inform employees.

https://www.osha.gov/Publications/osha3111.html

National Labor Relations Act (NLRA):  Employees have the right to organize and bargain collectively for wages, hours, and working conditions.

The National Labor Relations Act of 1935 (NLRA) was passed by Congress to encourage a healthy relationship between private sector workers and their employers. It was designed to curtail work stoppages, strikes, and general labor strife, which were viewed by Congress as harmful to the economy and the nation’s welfare. To this end, the Act defines and protects the rights of employees and employers, encourages collective bargaining, and prohibits certain practices on the part of both labor and management. The NLRA also provides a system for conducting elections to determine who represents the employees and for enforcement of the strictures against unfair practices by any of the parties.

https://www.nlrb.gov/guidance/key-reference-materials/national-labor-relations-act

Occupational Safety and Health Act (OSHA):  Employers must furnish a workplace that is free from recognized hazards. Poster required. 

https://webapps.dol.gov/elaws/elg/osha.htm

Equal Pay Act (EPA):  Forbids discrimination in pay on the basis of gender. Poster required.

Two federal statutes prohibit gender-based differences in pay: the Equal Pay Act of 1963 (EPA) and Title VII of the Civil Rights Act of 1964 (Title VII). Title VII and other federal laws also prohibit pay discrimination based on race, color, religion, national origin, age, and disability. Although the EPA and Title VII both prohibit pay discrimination based on gender, the laws differ in several aspects, including coverage, enforcement, and remedies.

 https://www.eeoc.gov/laws/statutes/epa.cfm

Fair Labor Standards Act (FLSA):  Regulates the payment of minimum wages and overtime. Poster required. 

The Fair Labor Standards Act (FLSA), also known as the federal Wage and Hour Law, regulates minimum wage, overtime, equal pay, recordkeeping, and child labor for employees of enterprises engaged in interstate or foreign commerce and employees of state and local governments. The FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor (DOL). The FLSA applies in all states, but states are permitted to develop their own laws and regulations to provide even greater protection for their workers than is provided under federal law. In cases in which the two laws conflict, the law most beneficial to the employee prevails. Therefore, it is essential that employers understand both the state and federal laws.

https://www.dol.gov/agencies/whd/flsa

Immigration Reform and Control Act (IRCA):  Employers must verify that workers are legally entitled to work in the United States.

IRCA also prohibits employers from discriminating in hiring, firing, recruiting, or referring based on national orgin or citizensip status. It is also illegal to retaliate against an employee who has filed. The Immigration Reform and Control Act of 1986 (IRCA) bars employers from hiring individuals, including undocumented immigrants, who are not legally entitled to work in the United States 

Employers must verify that individual are eligible to work by obtaining an Employment eligibility Verification Form, know as Form I-9 and inspecting the required supporting documents at the time of hiring. I-9 forms must be retained for 3 years after the worker is hired or for one year after termination, whichever is longer.

https://www.uscis.gov/i-9

Federal Income Tax Withholding:  Employers are required to make deductions from employees' pay for Social Security.

Employers are required by law to make deductions from the pay of their employees for federal income tax, for Social Security tax under the Federal Insurance Contribution Act (FICA), and for Medicare tax. The government provides detailed tables for the computation of these withholding amounts. Internal Revenue Service (IRS) Publication 15 (Circular E), Employer's Tax Guide, provides details and may be obtained on the IRS website athttps://www.irs.gov/forms-instructions.

What do employers need to consider regarding Social Security and Medicare? The Social Security program was created by the federal Social Security Act. It is a worker-employer-government insurance program, covering benefits for retirement, survivors, disability and Medicare. Employers withhold two separate taxes from employees’ paychecks. One is the Social Security tax and the other is the Medicare tax.

Medicare, which is funded through taxes, provides health insurance for people aged 65 or older and many people with disabilities. Medicare consists of Parts A (hospital insurance), B (medical insurance), and C (Medicare Advantage), which offer additional preventive health benefits and patient protections. In 2006, Medicare began offering prescription drug plans, known as Part D.

https://www.irs.gov/individuals/international-taxpayers/federal-income-tax-withholding

Federal Insurance Contributions Act (FICA) of 1935 (Social Security): Employers and Employees are required to contribute to Social Security and Medicare.

 https://www.irs.gov/taxtopics/tc751

Health Insurance Portability and Accountability Act (HIPAA):  Limits the duration of pre-existing condition exclusion in group health plans and gives new enrollees credit for prior coverage. 

https://www.hhs.gov/hipaa/index.html

If you have at least 15 employees, the following HR laws apply to you.

Americans with Disabilities Act (ADA):  Forbids discrimination against the disabled.

The Americans with Disabilities Act (ADA) prohibits disability discrimination. In the workplace, employers cannot discriminate against a qualified individual with a disability. Reasonable accommodation by employers is required absent undue hardship. The ADA Amendments Acts of 2008 (ADAAA) and its regulations significantly broadened the definition of disability, shifting the focus away from whether an individual has a disability and toward whether discrimination occurred.

 https://www.dol.gov/general/topic/disability/adaPregnancy Discrimination Act (PDA):  Forbids discrimination on the basis of pregnancy, childbirth, or related medical conditions. 

Several federal laws protect or grant rights to workers on the basis of pregnancy or related medical conditions. These rights and protections may include the right to be free from discrimination, harassment, and stereotypes; the right to reasonable workplace accommodations, such as job modifications, extended or additional breaks, and leave; the right to leave for pregnancy, childbirth, related medical conditions, and bonding; and the right to equivalent fringe benefits, such as health insurance.

https://www.eeoc.gov/laws/statutes/pregnancy.cfm

Genetic Information Nondiscrimination Act: To prohibit discrimination on the basis of genetic information with respect to health insurance and employment. 

The Genetic Information Nondiscrimination Act (GINA) prohibits genetic information discrimination against employees or job applicants.

https://www.eeoc.gov/laws/statutes/gina.cfm

Title VII of the Civil Rights Act of 1964: Prohibits discrimination on the basis of race, color, religion, sex, and national origin. 

Federal fair employment laws protect employees from discrimination based on age, race, color, sex, national origin, religion, disability, and genetic information. Federal law covers employers of 15 or more employees, except for the Age Discrimination in Employment Act (ADEA), which covers employers with 20 or more employees. State laws often cover employers with fewer employees and provide protection for groups not covered under federal law. Certain individuals in the workplace, such as independent contractors, are not protected by federal fair employment laws if they are not employees. Employers are liable for discriminatory acts by supervisors—in some cases, strictly liable. There are many preventive measures an employer can take to reduce the probability of being sued for discrimination. Civil rights laws also impose numerous recordkeeping requirements on employers.

https://www.eeoc.gov/laws/statutes/titlevii.cfm

Civil Rights Act of 1964 (Update): Extends prohibition of discrimination on the basis of sex to gay, lesbian, and transgender individuals.

https://www.npr.org/2020/06/15/863498848/supreme-court-delivers-major-victory-to-lgbtq-employees

If you have at least 20 employees, the following HR laws apply to you.

Age Discrimination in Employment Act (ADEA): Forbids the discrimination on the basis of age 40 and over. 

The Age Discrimination in Employment Act (ADEA) prohibits all public employers and private employers with 20 or more employees from discriminating against employees or applicants based on age. Individuals must be at least 40 years of age to be covered by the ADEA. Harassment of employees based on age is also unlawful discrimination. The ADEA also protects an older worker's disability payments, retirement incentives, life insurance, pension, and retirement plans. Amendments to the ADEA set out standards for waivers of legal rights by older employees in return for retirement incentives. Many states also have fair employment laws that prohibit age discrimination. Different age groups may be protected under state law, and smaller employers may be subject to state requirements.

https://www.eeoc.gov/laws/statutes/adea.cfmConsolidated Omnibus Benefits Reconciliation Act (COBRA):  Requires that employees who lose coverage under group health plans be given a continuation option.

https://www.dol.gov/general/topic/health-plans/cobra 

CavnessHR Product/Market Fit Validation and Tech Platform Validation

To help us with our product market fit and tech platform validation. We are providing Employee Handbooks and HR policies at no cost to companies with 49 or fewer people in the city of Seattle.

Email me at jasoncavness@CavnessHR.com if you are interested in this.