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Blog · Published: April 23, 2018 Updated: January 13, 2022

Be Prepared: Grow Your Workforce Beyond 50

While it may be hard to believe, some companies are afraid to grow. They avoid hiring critical roles because they’re concerned about how the additional headcount will impact them legally and financially. The truth is there are more regulations and compliance concerns that come into play at certain thresholds, but it shouldn’t keep companies from growing. Without a compliance department to consult, companies need to properly prepare for growth.

Hitting the double-digit milestone

Hiring a 10th employee is so exciting. Business owners feel like they’re building something employees can depend upon. Make sure that growth includes a safe workplace free from hazards that could harm employees. While safety is always a priority, you’ll also need to know how to keep records in accordance with the Occupational Safety and Health Act (OSHA) before hiring the 11th employee.

With continued growth, companies with 15 or more employees will need to understand how these federal laws help qualified candidates have a fair chance at securing employment:

  • The Americans with Disabilities Act, Pregnancy Discrimination Act and the Genetic Information Nondiscrimination Act (GINA) impact workplace hiring, firing, advancement, compensation and training policies.
  • The Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex and national original.

Companies looking to hire employee #20 will need learn about:

  • The Age Discrimination in Employment Act of 1967 to ensure they’re not discriminating against candidates and employees 40 years of age and older when deciding to hire, promote, discharge or compensate.
  • The Consolidated Omnibus Budget Reconciliation Act (COBRA) that gives former employees, retirees and their dependents can elect to continue their health coverage at group rates.

 

Nifty fifty

Employers may be completely dedicated to employees’ best interests, but accidentally violate regulations because of a lack of knowledge. With 50 or more employees, companies will need to understand the impact of the following:

  • The Affordable Care Act (ACA) requires you to offer affordable health insurance according to the Employer Shared Responsibility Provision with reporting requirements.
  • The Family Medical Leave Act (FMLA) allows employees to take unpaid time off (up to 12 weeks) for medical reasons or to help with certain family responsibilities.
  • Equal Employment Opportunity (EEO) requirements of Executive Order 1126 must maintain a written affirmative action program (AAP) if they have a federal contract of $50,000 or more.

 

Know when to get help

Growing a successful business is all-consuming for many owners. When it comes to remaining compliant, they should consider partnering with an expert to help out. MidwestHR, a top Chicago PEO in Illinois, has a team of experts that understand all the federal and state laws affecting small growing businesses. The above listing is just the beginning. Celebrate every growth milestone and leave your compliance worries to MidwestHR. Give us a call 630-468-9286 to get started.

Filed Under: Blog

Charmaine Hollaway

Working in the Professional Employer Organization industry since 1993, Charmaine has been involved in almost every aspect of PEO services. In her role as the Managing Director of HR & Benefits at MidwestHR, she oversees all HR compliance and employee benefits in addition to managing retirement plans.

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