HR Laws Small Businesses Must Follow (49 or fewer employees)
If you have even one employee, you're already on the hook for key HR laws. In this solo episode, Jason breaks down what applies at 1+, 15+, and 20+ employees, how federal and state rules interact, and simple steps to stay compliant while you grow. Includes a Seattle-specific offer: free employee handbooks and HR policies for qualifying small businesses as part of CavnessHR's product/market-fit and platform validation.
Episode highlights • What applies at 1+ employees (FLSA, OSHA, ECPA, ERISA basics, I-9/IRCA, Equal Pay Act, NLRA rights, USERRA, hazard communication) • When additional rules kick in at 15+ (ADA, Pregnancy Discrimination Act, Title VII, GINA) • What changes at 20+ (ADEA, COBRA basics) • Federal vs. state: the "most protective" rule wins • Practical compliance checklist for founders under 50 employees
Seattle offer (PMF/tech validation) As part of CavnessHR's product/market-fit and platform validation, we're providing Employee Handbooks and core HR policies at no cost to companies with 49 or fewer people in the City of Seattle. Email [email protected] to apply.
Call to action Full episodes: www.thejasoncavnessexperience.com Become an owner in CavnessHR: https://wefunder.com/cavnesshr Download 7 free startup ebooks: https://www.buildcavnesshr.com/ebooks
Quick reference by company size 1+ employees (federal baseline) • FLSA — minimum wage, overtime, recordkeeping • OSHA — safe workplace; poster required • Equal Pay Act — no sex-based pay discrimination; poster required • IRCA/I-9 — verify work authorization, retain I-9s • NLRA — employee rights to concerted activity (even in non-union shops) • USERRA — military leave/reinstatement protections • ERISA — if you offer benefits, follow plan/governance rules • ECPA — limits on intercepting electronic communications • Hazard Communication (if applicable) — train/label hazardous substances • Drug-Free Workplace — mandatory only for certain federal contractors/grantees; otherwise voluntary but regulated if you test
15+ employees • ADA/ADAAA — disability discrimination prohibition and reasonable accommodations • Title VII — race, color, religion, sex (including sexual orientation/gender identity), national origin • Pregnancy Discrimination Act — pregnancy/related conditions; reasonable accommodations • GINA — no discrimination based on genetic information
20+ employees • ADEA — protects workers age 40+ • COBRA — continuation of group health coverage after qualifying events
Simple founder checklist • Post required federal/state posters and maintain I-9 and time records • Adopt clear policies: EEO, anti-harassment, disability and pregnancy accommodations, leaves, overtime, timekeeping, device/IT use, drug-testing (if any), military leave, safety • Keep job descriptions, offer letters, and pay practices aligned with FLSA and Equal Pay rules • Train managers yearly on EEO/harassment, accommodations, and wage/hour basics • Review benefits for ERISA compliance (if offered) and keep SPD/plan docs in order • Track headcount thresholds (15, 20) so added obligations don't sneak up on you
Notes This episode provides general information, not legal advice. Requirements can vary by state and city; when federal and state rules conflict, the rule most protective of employees typically applies. Seattle employers may also have additional local requirements (wage, leave, scheduling). Consult counsel for
