As your business grows, it is important to determine what laws apply to your company, and to reevaluate your policies, or, in some instances, create policies. While many small businesses shy away from formal policies, some policies are not optional but are mandated by law. 

 

     The quick answer to your question is, yes, your business is now subject to certain federal and state laws, which may require you to provide certain formal policies to your employees. As always, you should consult your attorney before making any changes to ensure that your solution complies with the law.

 

     Below is a synopsis of some of the laws that now apply to a company of your size:

      Discrimination. Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment on the basis of race, color, religion, national origin, age, sex, marital status and disability. Under federal law, employers with 15 or more employees are subject to this provision. In addition to federal law, state law may include other protected classes or define employer to include additional organizations.

 

      Pregnancy Discrimination Act applies to employers with 15 or more employees

and prohibits employers from discriminating on the basis of pregnancy, childbirth or medical conditions related to pregnancy or childbirth.  

 

      Americans with Disabilities Act prohibits discrimination on the basis of disability and ensures equal treatment between the disabled and the non-disabled. Employers who have 15 or more employees are subject to the ADA. 

 

     Age Discrimination in Employment Act prohibits discrimination on the basis of age in matters related to hiring, job retention, compensation and other terms of employment. Employers who have more than 20 employees for each working day in twenty or more calendar weeks in the current or preceding calendar year are covered.

 

        Sexual Harassment.   Sexual harassment is a type of sex discrimination which violates Title VII of the Civil Rights Act. Title VII again applies only to organizations with 15 or more employees, including state, county and municipal governments. 

           

     As a business owner, it is your responsibility to ensure your business and employees comply with these laws. Failure to do so can result, at a minimum, in civil liability.