A plain-English map of the main federal employment laws, which employers they cover and what each one asks you to do.
Federal employment laws do not all switch on at once. Several are tied to how many people you employ, and the way you count differs from law to law. Title VII, for example, counts employees who worked for you in each of 20 or more calendar weeks in the current or previous year. FMLA counts employees on the payroll for 20 or more workweeks and also asks how many work within 75 miles of the employee’s worksite.
To record clock-ins, breaks and overtime automatically, see EZTime time and attendance software.
So the first step is simple: know your headcount by week, including part-time employees. Part-time staff count as employees for most of these thresholds. Independent contractors generally do not, but only if they are properly classified. See our guide on independent contractors vs employees before you leave anyone out of the count.
| Law | What it covers | What it asks of you |
|---|---|---|
| Fair Labor Standards Act (FLSA) | Minimum wage, overtime, recordkeeping, child labor | Pay at least the federal minimum wage, pay overtime at 1.5 times the regular rate after 40 hours in a workweek for non-exempt staff, and keep accurate time and pay records |
| Equal Pay Act | Pay differences based on sex | Pay men and women equally for substantially equal work in the same establishment, unless a legitimate factor such as seniority or merit explains the gap |
| Occupational Safety and Health Act | Workplace safety | Keep the workplace free of recognized serious hazards and follow the OSHA standards that apply to your work |
| National Labor Relations Act (NLRA) | Employees’ rights to act together | Do not interfere with employees discussing pay or working conditions or organizing, whether or not you have a union |
| Immigration Reform and Control Act | Work authorization | Complete Form I-9 for every new hire and do not discriminate based on citizenship or national origin |
| USERRA | Military service | Give reemployment rights to employees returning from military service and do not discriminate based on service |
| Employee Polygraph Protection Act | Lie detector tests | Generally do not require or use polygraph tests for hiring or employment decisions |
The FLSA reaches most businesses through “enterprise” or “individual” coverage, and in practice almost every employer with hourly staff should assume it applies. Its recordkeeping rules are the reason accurate timekeeping matters: you must keep hours worked each day and each workweek for non-exempt employees. Our FLSA overtime rules guide covers the details.
| Threshold | Law | Main requirement |
|---|---|---|
| 15 employees | Title VII of the Civil Rights Act | No discrimination based on race, color, religion, sex (including pregnancy, sexual orientation and gender identity) or national origin |
| 15 employees | Americans with Disabilities Act (ADA), Title I | No disability discrimination; provide reasonable accommodation unless it causes undue hardship |
| 15 employees | Pregnancy Workers Fairness Act | Provide reasonable accommodation for known limitations related to pregnancy, childbirth or related conditions |
| 15 employees | Genetic Information Nondiscrimination Act (GINA) | Do not use or request genetic information, including family medical history, in employment decisions |
| 20 employees | Age Discrimination in Employment Act (ADEA) | No discrimination against workers aged 40 and older |
| 20 employees | COBRA | Offer continuation of group health coverage after qualifying events such as job loss |
| 50 employees | Family and Medical Leave Act (FMLA) | Up to 12 weeks of job-protected unpaid leave for eligible employees, with health coverage maintained |
| 50 employees | ACA employer mandate | Applicable large employers must offer affordable coverage or may owe a payment, and must file Forms 1094-C and 1095-C |
| 100 employees | WARN Act | Give 60 days’ notice before covered plant closings and mass layoffs |
Counting rules differ, so treat this table as a starting point. The ACA threshold counts full-time employees plus full-time equivalents, not just full-time staff, so a business with many part-time workers can cross it earlier than expected. Federal contractors face further rules that are outside the scope of this guide.
Several of these laws require you to display a notice where employees can see it. The Department of Labor and the EEOC publish free posters, including the FLSA minimum wage poster, the “Know Your Rights” EEO poster, the FMLA poster for covered employers, the OSHA “Job Safety and Health” poster and the USERRA notice. If many employees work remotely, many employers also share the notices electronically.
Records matter as much as posters. Keep payroll and time records for at least three years under the FLSA, and the timecards and schedules that support them for at least two. Keep I-9 forms for three years after hire or one year after employment ends, whichever is later. Our guide to time record retention explains the details, and many states require longer.
Federal law is the floor. States and cities often add higher minimum wages, daily overtime, paid sick leave, meal and rest breaks, predictive scheduling, pay transparency and lower thresholds for anti-discrimination laws. When federal and state rules differ, you generally must follow whichever is more protective for the employee.
Use our state labor law pages to see the main rules where you operate.
Most claims against small employers come from wage and hour issues: unpaid overtime, off-the-clock work and missing records. Accurate time records are the cheapest protection you can buy. See how to protect your business from wage and hour claims.
EZTime records clock-ins and clock-outs, breaks and overtime for every hourly employee, keeps an audit trail of timecard corrections and sends labor rule alerts before overtime thresholds are crossed. Signed policies and forms are stored in each digital employee file. It does not replace legal advice, but it gives you the records that most of these laws rely on.
In practice, most businesses with hourly employees should assume it does. Coverage can come from the business (enterprise coverage) or from an individual employee’s work, such as handling goods that cross state lines.
Yes, for most laws. Title VII and the ADA count every employee on the payroll for each working day in 20 or more weeks, including part-time employees.
Generally no, if they are correctly classified. If a worker is misclassified, they may count and be owed back wages and benefits.
Usually you must follow the rule that gives the employee more protection, such as the higher minimum wage.
At least the FLSA minimum wage poster, the EEO “Know Your Rights” poster if you have 15 or more employees, the OSHA poster and any posters for laws that apply to you, such as FMLA. Your state has its own list.
At least three years for payroll records under the FLSA and two years for timecards and schedules. Many states require longer.
Set overtime thresholds and weekly hour limits in EZTime and managers get an alert while there is still time to change the schedule. See current plans and what each one includes on the pricing page.