As your business grows so do your HR responsibilities and obligations. Once you reach 50 employees, for instance, certain laws start to apply. These additional rules range from leave rights to workplace safety. Failing to meet these new regulations can lead to harsh penalties and weaken employee morale.
These new requirements and responsibilities can bog you down, taking your attention away from growth. Fortunately, partnering with Pinnacle Employee Services can help. Our team can take on many of these critical admin and reporting tasks, freeing you to continue growing your business and hitting more milestones.
Here are some key regulations you’ll need to be aware of when you hit the 50-employee milestone.
Family and Medical Leave Act (FMLA)
At the 50-employee milestone, the FMLA grants eligible individuals up to 12 weeks of job-protected, unpaid leave. This time off can be used for things like serious health events, parental leave, or care for a family member with health issues. To qualify, employees must have worked for your company for at least 12 months and logged 1,250 hours or more during that period of employment.
Managers must follow specific steps to remain compliant with the FMLA. For example, job protection is central to the law so employees should be offered the same or an equivalent role when they return to work. It’s a good idea to have a written policy that outlines these leave rights so employees and supervisors clearly understand the process. You should also keep through records of leave requests and the dates the leave is taken.
Affordable Care Act (ACA) Requirements
With 50 or more employees, offering health insurance becomes a legal requirement under the ACA. If this requirement is ignored, you may face shared responsibility payments. These payments might appear if coverage is not extended to the necessary number of employees or if it fails to meet minimum value and affordability tests.
Following these guidelines requires you to keep a close eye on employee hours. Some part-time employees might cross a threshold and count as full-time if their hours average above a set limit. That’s why it is important to keep good time records and confirm hours and eligibility on a regular basis.
COBRA and Continuation Coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) grants certain employees and their qualified dependents the option to keep group health coverage after specific changes occur. An individual typically becomes eligible if a group plan is in place and then a job-related event causes a loss of benefits. Spouses and children and children may also be entitled to continuing coverage.
Common events include job termination for reasons other than gross misconduct or a reduction in working hours. Other events like divorce or legal separation can also create eligibility. Even the covered employee’s enrollment in Medicare or death can trigger a continuation option for dependents.
When putting a plan in place, a group health plan sponsor should distribute written details to new enrollees early in coverage. Once a qualifying event happens, another notice should follow that outlines the terms of the continuation option and its deadlines. Participants typically have a period to elect the coverage and then make monthly payments for the duration allowed by law. Prompt and accurate communication is key at every step. This helps reduce confusion and supports timely decisions for individuals who need extended health coverage.
Equal Employment Opportunity (EEO) Considerations
Equal Employment Opportunity (EEO) focuses on fair treatment for every worker. Title VII, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA) form the core legal framework of EEO.
Title VII prohibits companies from hiring and promoting employees based on race, color, religion, sex, or national origin. The ADA protects workers with disabilities by requiring reasonable accommodations when possible. The ADEA shields employees 40 years and older from unfair treatment. Each of these regulations helps create a fair work environment where people are judged by their work performance and skills.
Preventing workplace bias starts with fair interviewing policies and promotion criteria. Managers should focus on experience and relevant qualifications, rather than personal traits. Routine sensitivity training sessions also play a key role in remaining compliant with EEO requirements. By investing in these programs, companies can reinforce mutual respect and strengthen employee morale.
Reaching 50 employees is an exciting milestone for your company. But it comes with more responsibilities. By staying aware of the laws triggered once you reach this size, you can protect your business and support your employees. The regulations covered in this post are just a starting point. Taking time to review your internal policies, scheduling periodic check-ins, and developing accurate employment recordkeeping practices go a long way to meeting your legal obligations.
Need help with HR compliance? Pinnacle can help! We’re here to take care of all your HR needs so you can focus on growing your business. Contact us for your HR Review and Needs Analysis today!