{"id":4693,"date":"2016-04-04T10:47:40","date_gmt":"2016-04-04T15:47:40","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/employment-and-anti-discrimination-laws-an-introduction.html"},"modified":"2026-10-12T11:41:38","modified_gmt":"2026-10-12T16:41:38","slug":"employment-and-anti-discrimination-laws-an-introduction","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/employment-and-anti-discrimination-laws-an-introduction.html","title":{"rendered":"What Are Federal Employment and Anti-Discrimination Laws? Employer Rules and Employee Thresholds"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-28f84493 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">What Are Federal Employment and Anti-Discrimination Laws? Employer Rules and Employee Thresholds<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/laura-temme-esq\/\">Laura Temme, Esq.<\/a>\n                | Last updated\n        <time>\n                            October 12, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>Federal employment and <span data-term-id=\"59967785\">anti-discrimination laws<\/span> govern the employer-employee relationship. These laws set standards for fair pay and prohibit workplace discrimination based on\u00a0<span data-term-id=\"59967799\">protected characteristics<\/span>\u00a0such as <span data-term-id=\"59967761\">race<\/span>, age, <span data-term-id=\"59967768\">sex<\/span>, or disability.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n<div class=\"fl-rich-text\">\n<div><p>As a small business owner, your legal obligations grow as your company does. Understanding which rules apply at each stage is essential to staying compliant and avoiding costly legal issues. This guide breaks down the major federal <span data-term-id=\"59967781\">employment laws<\/span> by employee count. Remember that state and local laws may offer even greater protections for workers. Visit FindLaw&#8217;s Small Business <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/discrimination-and-harassment.html\">Discrimination and <span data-term-id=\"59967776\">Harassment<\/span><\/a> page for more information on <span data-term-id=\"59967785\">anti-discrimination laws<\/span>.<\/p>\n<h2>When You Hire Your First Employee (1+ Employees)<\/h2>\n<p>From the moment you hire your first employee, several key <span data-term-id=\"59967774\">federal laws<\/span> immediately apply to your business.<\/p>\n<h3><span data-term-id=\"59967782\">Fair Labor Standards Act<\/span> (<span data-term-id=\"59967794\">FLSA<\/span>)<\/h3>\n<p>The <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/federal-wage-law-the-fair-labor-standards-act.html\"><span data-term-id=\"59967782\">Fair Labor Standards Act<\/span><\/a> applies to nearly any business that engages in interstate commerce or has more than $500,000 in annual gross sales. The <span data-term-id=\"59967794\">FLSA<\/span> sets basic standards on:<\/p>\n<ul>\n<li>Federal <span data-term-id=\"59967800\">minimum wage<\/span><\/li>\n<li>Workweek hours and overtime<\/li>\n<li>Child labor<\/li>\n<li>Recordkeeping and reporting<\/li>\n<\/ul>\n<p><span data-term-id=\"59967792\">State laws<\/span> may be more restrictive and require higher <span data-term-id=\"59967800\">minimum wages<\/span> and <span data-term-id=\"59967808\">overtime pay<\/span>. Business owners should consult state labor laws when setting wages and hours.<\/p>\n<h3><span data-term-id=\"59967777\">Equal Pay Act<\/span><\/h3>\n<p>The <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/equal-pay-and-compensation-discrimination-facts.html\"><span data-term-id=\"59967777\">Equal Pay Act<\/span><\/a> applies to any business with one or more employees. Employers must pay male and female employees the same wage for equal work. However, the <span data-term-id=\"59967777\">Equal Pay Act<\/span> permits wage differences based on seniority, merit, production, or other factors besides <span data-term-id=\"59967768\">sex<\/span>.<\/p>\n<h3>Employee Retirement Income Security Act (ERISA)<\/h3>\n<p>The <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/faq-pension-plans-and-erisa.html\">Employee Retirement Income Security Act<\/a> affects employers who offer employees health insurance or retirement plans. ERISA sets rules for notifying employees of plan changes, recordkeeping, and filing claims with insurance carriers. ERISA applies to any employer offering retirement or health care plans.<\/p>\n<h2>When You Reach 15+ Employees<\/h2>\n<p>Once your business has\u00a0<span data-term-id=\"59967791\">15 or more employees<\/span>\u00a0for at least 20 calendar weeks, several major federal\u00a0<span data-term-id=\"59967785\">anti-discrimination laws<\/span>\u00a0apply.<\/p>\n<h3><span data-term-id=\"59967780\">Title VII of the Civil Rights Act of 1964<\/span><\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/employment\/employment-discrimination\/title-vii-of-the-civil-rights-act-of-1964-equal-employment.html\">Title VII of the Civil Rights Act<\/a> prohibits discrimination based on:<\/p>\n<ul>\n<li><span data-term-id=\"59967761\">Race<\/span><\/li>\n<li><span data-term-id=\"59967764\">Color<\/span><\/li>\n<li><span data-term-id=\"59967762\">National origin<\/span><\/li>\n<li><span data-term-id=\"59967767\">Religion<\/span><\/li>\n<li><span data-term-id=\"59967768\">Sex<\/span> (which includes <span data-term-id=\"59967769\">pregnancy<\/span>, <span data-term-id=\"59967775\">sexual orientation<\/span>, and <span data-term-id=\"59967802\">gender identity<\/span> per a 2020 Supreme Court decision in <em><a href=\"https:\/\/supreme.findlaw.com\/supreme-court-insights\/bostock-v--clayton-county-case-summary-.html\" target=\"_blank\" rel=\"noopener\">Bostock v. Clayton County<\/a><\/em>)<\/li>\n<\/ul>\n<p>This law also prohibits <span data-term-id=\"59967776\">harassment<\/span> that creates a <a href=\"https:\/\/dictionary.findlaw.com\/definition\/hostile-work-environment.html\" target=\"_blank\" rel=\"noopener\">hostile work environment<\/a>, where unwelcome conduct is so severe or pervasive it becomes a condition of employment. A <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/bona-fide-occupational-qualification.html\">bona fide occupational qualification<\/a> (BFOQ) is a very narrow exception that allows employers to hire based on a protected trait if it\u2019s essential to the job, such as a church hiring only clergy of its own faith.<\/p>\n<h3><span data-term-id=\"59967766\">Americans with Disabilities Act<\/span> (<span data-term-id=\"59967773\">ADA<\/span>)<\/h3>\n<p>The <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/disability-discrimination-facts.html\"><span data-term-id=\"59967766\">Americans with Disabilities Act<\/span><\/a> bans discrimination based on the presence or perception of a disability. A &#8220;disability&#8221; is a physical or mental impairment that substantially limits one or more major life activities. A covered employer must make &#8220;<span data-term-id=\"59967771\">reasonable accommodations<\/span>&#8221; for people protected under the act unless doing so would cause an <span data-term-id=\"59967783\">undue hardship<\/span> on the business.<\/p>\n<h3>Pregnant Workers Fairness Act (PWFA)<\/h3>\n<p>The <a href=\"https:\/\/www.eeoc.gov\/wysk\/what-you-should-know-about-pregnant-workers-fairness-act\" target=\"_blank\" rel=\"noopener\">Pregnant Workers Fairness Act (PWFA)<\/a> requires employers with <span data-term-id=\"59967791\">15 or more employees<\/span> to provide <span data-term-id=\"59967771\">reasonable accommodations<\/span> for a worker&#8217;s known limitations related to <span data-term-id=\"59967769\">pregnancy<\/span>, <span data-term-id=\"59967798\">childbirth<\/span>, or <span data-term-id=\"59967787\">related medical conditions<\/span>, unless the accommodation would cause an <span data-term-id=\"59967783\">undue hardship<\/span>. This might include more frequent breaks, a modified work schedule, or being excused from strenuous activities. The PWFA operates similarly to the <span data-term-id=\"59967773\">ADA<\/span> but is specifically for <span data-term-id=\"59967769\">pregnancy<\/span>-related conditions.<\/p>\n<h3><span data-term-id=\"59967779\">Genetic Information Nondiscrimination Act<\/span> (<span data-term-id=\"59967778\">GINA<\/span>)<\/h3>\n<p>Title II of the <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/genetic-information-discrimination-.html\"><span data-term-id=\"59967779\">Genetic Information Nondiscrimination Act<\/span><\/a> bans discrimination based on a person&#8217;s genetic information. The law bars employers from requesting, requiring, purchasing, or disclosing genetic information except in very limited circumstances.<\/p>\n<h2>When You Reach 20+ Employees<\/h2>\n<p>As your team grows to\u00a0<span data-term-id=\"59967786\">20 or more employees<\/span>, you also become responsible for additional laws on age discrimination and health insurance continuation.<\/p>\n<h3><span data-term-id=\"59967765\">Age Discrimination in Employment Act<\/span> (<span data-term-id=\"59967763\">ADEA<\/span>)<\/h3>\n<p>The <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/age-discrimination-in-employment.html\"><span data-term-id=\"59967765\">Age Discrimination in Employment Act<\/span><\/a> bans employers from discriminating against workers or job applicants over 40 in hiring, firing, or promotions. Employers may not selectively fire older workers to avoid paying retirement benefits. The act allows age to be a factor only when it is a bona fide occupational qualification.<\/p>\n<h3>Consolidated Omnibus Reconciliation Act (COBRA)<\/h3>\n<p>The <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/cobra-continuation-health-coverage-faq.html\">Consolidated Omnibus Reconciliation Act<\/a> allows workers to keep their group health plan after leaving their job. Employees can continue coverage for themselves and their families, but they must pay the full insurance premium. COBRA applies after termination of employment or reduction in hours, but not for termination due to an employee&#8217;s gross misconduct.<\/p>\n<h2>When You Reach 50+ Employees<\/h2>\n<p>Crossing the 50 employee threshold triggers the <span data-term-id=\"59967810\">Family and Medical Leave Act<\/span>, one of the most significant federal <span data-term-id=\"59967781\">employment laws<\/span>. The <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/complying-with-the-fmla.html\"><span data-term-id=\"59967810\">Family and Medical Leave Act<\/span><\/a> requires covered employers to give eligible employees up to 12 weeks of unpaid leave every 12 months for:<\/p>\n<ul>\n<li>The birth or adoption of a child<\/li>\n<li>Care for an immediate family member with a serious health condition<\/li>\n<li>The employee&#8217;s own serious health condition<\/li>\n<\/ul>\n<p>After leave, the employee must return to the same or an equivalent job. Some <span data-term-id=\"59967792\">state laws<\/span> provide similar leave for smaller companies.<\/p>\n<h2>Best Practices for Compliance and a Healthy Workplace<\/h2>\n<p>Understanding the laws is the first step. Next, implement policies to ensure compliance and protect your business.<\/p>\n<h3>Create an Anti-Discrimination Policy<\/h3>\n<p>The Equal Employment Opportunity Commission (<span data-term-id=\"59967770\">EEOC<\/span>) recommends that all businesses have a written anti-discrimination and anti-<span data-term-id=\"59967776\">harassment<\/span> policy. Include this policy in your employee handbook. It should define and provide examples of prohibited conduct and outline a clear procedure for reporting a complaint.<\/p>\n<h3>Handle Complaints Promptly and Professionally<\/h3>\n<p>Take all discrimination and <span data-term-id=\"59967776\">harassment<\/span> complaints seriously. Designate a specific person (often in HR) to investigate all claims. Your process should ensure confidentiality to the greatest extent possible and protect employees from <span data-term-id=\"59967772\">retaliation<\/span> for making a complaint. Follow your written policy for any disciplinary action, and refer any criminal behavior to law enforcement.<\/p>\n<h2>Get Legal Advice<\/h2>\n<p>Federal, state, and local <span data-term-id=\"59967781\">employment law<\/span> is complex and constantly changing. An experienced <a href=\"https:\/\/lawyers.findlaw.com\/employment-law-employee\/?fli=dcta\" target=\"_blank\" rel=\"noopener\"><span data-term-id=\"59967781\">employment law<\/span> attorney<\/a> can help you conduct a compliance review, draft an employee handbook, and provide guidance on handling sensitive workplace issues. Connecting with a local attorney can help you identify and fix potential problems before they become costly legal disputes.<\/p><\/div>\n<\/div>\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" 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