Legal Compliance Requirements

By Employer Size

JBConsulting/Interwest are not licensed to practice law and are not attorneys.
Accordingly, a legal interpretation or explanation of a law is not implied or intended.
To secure a legal interpretation or explanation of law you are advised to contact a
competent attorney or the appropriate enforcement agency.

One or More Employees

Federal and State Wage and Hour Laws – All employers must follow both
federal and state wage and hour laws regarding how to classify employees (i.e.
exempt/non-exempt) and the related minimum wages, pay periods, work
schedules, and overtime compensation.

Sexual Harassment - Employers must take all reasonable steps to prevent

harassment from occurring. “Harassment” on the basis of sex includes sexual
harassment, gender harassment, and harassment based on pregnancy,
childbirth or related medical conditions. The Equal Employment Opportunity
Commission (EEOC) guidelines on sexual harassment define sexual harassment
as “unwelcome sexual advances, requests for sexual favors, and other verbal or
physical conduct of a sexual nature.”

Unemployment Insurance - The unemployment insurance (UI) system in the

United States is a federal/state program. The federal unemployment tax pays for
the cost of administering the program plus the federal share of the federal/state
extended benefits program: the state tax pays for UI benefits paid to claimants.

Disability Insurance - State disability insurance laws are a part of the

Unemployment Insurance Code. State disability insurance partially compensates
loss of earnings due to sickness and injury not covered by workers’
compensation.

Workers’ Compensation - Workers’ compensation laws are essentially a no-

fault system for industrial accidents. Each employer must post, in a conspicuous
place frequented by employees and where it can be read easily, a notice that
sets forth the employer’s workers’ compensation carrier and who within the
company is responsible for handling workers’ compensation claims. Every
employer subject to workers’ compensation must give each new employee a
written notice of the above information either at the time the employee is hired or
by the end of the first pay period.

Immigration Reform and Control Act - All employers must verify that every
new hire is either a U.S. citizen or authorized to work in the United State. A

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federal I-9 Form must be completed for every employee hired after November 6,
1986 in order to verify eligibility to work in the United States.

Child Labor Laws - Every employer who employs a minor is subject to both
state and federal child labor laws. Where state and federal law conflict, the one
that provides the most protection to the minor prevails. With limited exceptions,
an employer must acquire a work permit before employing a minor.

Time-Off Provisions – Employers are required to provide time off to employees

for certain activities, such as voting, jury or witness duty, service in the military.

Right to Privacy – The Supreme Court guarantees a constitutional right to

personal privacy for employees. The Courts have defined limitations and notices
required for employment issues such as drug/medical/psychological testing,
personnel files, background investigations, consumer reports/other financial
records, finger-printing/polygraph testing, arrest records, marital status, smoking,
and workplace property searches.

Posting and Notice Requirements – All employers are required to display

certain posters. They include unemployment insurance, disability insurance,
sexual harassment, state health insurance, worker’s compensation, wage and
hour information, safety and health posters. This list is not exhaustive and we
recommend you contact your state and federal agencies for further information.

Occupational Health and Safety Laws – All employers must comply with
federal and state health and safety laws. The Federal Occupational Safety and
Health Act requires all employers covered by its provisions to keep their places
of employment safe and free from recognized hazards that are likely to cause
death or serious harm to employees.

HIPAA – Employees and his/her dependents who receive health insurance

benefits from his/her employer must be given certificates of coverage. Employers
must credit coverage from prior plans for pre-existing health conditions.

Four or More Employees

Anti-Discrimination Provisions of the Immigration Reform and Control Act

of 1986 Employers are prohibited from discriminating against any person
because of a person’s national origin, or in the case of a citizen or protected
individual because of an employee’s citizenship status. Employers cannot limit
jobs to U.S. Citizens to the exclusion of authorized aliens.

Fifteen or More Employees

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Title VII of the Civil Rights Act of 1964 – Employers of 15 or more employees
may not discriminate on the basis of race, color, national origin, sex or religion.

Americans with Disability Act (ADA) – Employers with 15 or more employees

are required to make reasonable accommodations for otherwise qualified
individuals with disabilities.

Twenty or More Employees

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) –

COBRA allows for employees to continue their health coverage through the
employer’s group plan for a specified period of time.

Health Insurance Premium Payment (HIPP) Program – This notice must be

provided to terminating employees advising them of the availability of continued
health insurance coverage, paid by the state, under certain circumstances.

Twenty-five or More Employees

Illiteracy – (See last page)

Alcohol and Drug Rehabilitation – (See last page)

Family School Partnership Act – Parents or guardians of children attending

licensed day care, Kindergarten or Grades 1 through 12 must all employees up
to 40 hours per year to attend and participate in school activities. Employees
may be required to use vacation, personal leave or other paid time off benefits
for these purposes.

Fifty or More Employees

Family and Medical Leave Act – Employees are allowed up to 12 weeks unpaid
leave for the employee’s own serious illness, to care for a seriously ill family
member, or to bond with a newborn child. The employee must be guaranteed the
right to return to his/her job and continuation of health benefits.

Affirmative Action – Some federal and state contractors and subcontractors

with more than 50 employees must develop written affirmative action plans.

One-hundred or More Employees

WARN Act (Plant Closing/Layoff) – Employers with 100 or more employees

must give 60 days’ notice before laying off or terminating 50 or more employees.

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CALIFORNIA

Two – 19 Employees who provide employees with health care or disability

insurance must comply with Cal-COBRA requirements.

Employers of 15 or more employees are prohibited from discriminating on the

basis of mental disability under California’s Fair Employment and Housing Act
(FEHA).

Employers of 25 or more employees must reasonably accommodate and assist

an employee who reveals a problem of illiteracy and request employer
assistance.

Employers of 25 or more employees must reasonably accommodate an

employee who whishes to participate in an alcohol or drug rehabilitation
program.