Outsourcing HR – A No Brainer for Managing Complex Employment Laws

I found this article relating to Employment Law which I thought may be of interest. So here it is for you

Despite 15 years working in the human resource outsourcing industry, the complexity of HR administration never ceases to amaze me! No one starts a business, just so that they can grapple with the myriad laws, regulations, guidelines, recommendations and expectations governing their employees. Yet,  State and federal laws direct employers on virtually every conceivable employment interaction, and the expectation exists that employers are aware, and comply, with all of them!

Just to illustrate, there are over 50 regulations governing businesses that employ even one employee!

We thought it would be a good idea to briefly list all the employment requirements of employers, based on the size of their workforce. Most of these laws are probably familiar to all of you, but certainly many are not.

If you have any questions, please feel free to contact our human resources outsourcing specialists to discuss the option of outsourcing HR.


Please note: many of the requirements below are for California employers only. Be sure to check the regulations governing your state of business.


Selected Employment Law Requirements by Company Size:


One or More Employee


Age Discrimination (State)
Agriculture Labor Relations Act (State)
Applicant Identification Records Act (State)
Change of Status Notification Requirement (State – EDD)
Child Labor Laws (Federal and State)
Civil Rights Act
Confidentiality of Medical Information Act (State)
Corporate Criminal Liability Act (State)
Disability Insurance Coverage – SDI (State)
Domestic Partner Rights (State)
Dress Code Requirements State)
Drug Free Workplace (State)
Drug Testing – (Federal)
Earned Income Tax Credit Information Act (State)
Economic Espionage Act (Federal)
Employee Invention Rights (State)
Employee Polygraph Protection Act (State and Federal)
Employee Registry  – New Hire Reporting (State)
Employment Laws Applicable Regardless of Immigration Status (State)
Equal Pay Act (State)
Equal Pay Act (Federal)
Ergonomics (State)
Fair Credit Reporting Act (Federal and State)
Garnishments – Wage (Federal and State)
Harassment – Age, Sex, Religion, etc (State)
Hazardous Substances Information Training Act (State)
Health Insurance Portability Accountability Act (HIPAA) (Federal)
Health Insurance Premium Payments (Federal)
Immigration Reform and Control Act (Federal)
Injury/Illness Prevention Plans (IIPP) (State)
Insurance Conversion Privileges (State)
Jury/Witness Duty Leave (State)
Lactation, Express Breast Milk Accommodation (State)
Military Duty Leave (State & Federal)
National Labor Relations Act
No Smoking Policy (State)
OSHA (State)
Paid Family Leave (State)
Personnel Records, Employee Review Rights (State)
School Visits for Suspended Child (State)
Sick Leave Usage- for Care of Family (State)
Summary Plan Description and Annual Rep Form 5500’s.  Required under Federal ERISA
Time off to Vote (State)
Trade Secrets Act (State)
Unemployment Insurance Coverage (State and Federal)
Veterans “Reemployment Law”
Wage & Hour Provisions – DOL (Federal)
Wage and Hours Provisions- IWC Orders (State)
Whistleblower Protection Act (State)
Workers Compensation Insurance Coverage (State)



Two to Nineteen Employees


Cal-COBRA (State)


Four or More Employees


National Origin Discrimination (Federal)


Five or More Employees


Fair Employment Practice Laws (State)


Pregnancy Disability Leave (State)


Fifteen or More Employees


Americans with Disabilities Act (Federal)


Equal Employment Opportunity (Federal)


Twenty or More Employees


Age Discrimination (ADEA) (Federal)


COBRA – (Federal)


California COBRA – continue up to 18 mos at the end of federal COBRA (State)


Twenty Five or More Employees


Victims of Domestic Violence Leave Act


Drug/Alcohol Rehabilitation


Literacy Education for Employees Act (State)


Military Service Benefits – leave for spouse (State)


School Visitation by Parents, Guardians, Grandparents (State)


Fifty or More Employees


California Rights Act (CFRA)


FEHA – Required Sexual Harassment Training (see also one or more employee)


Federal Family Leave and Medical Leave Act (FMLA)


Mental Health Parity Act


Volunteer Firefighters up to 14 days annual leave


Seventy-Five or More Employees


California Layoff Law, Relocations, Terminations, and Mass Layoffs (WARN Act)


After reading through the above list of employment legislation and rules, it becomes abundantly clear that outsourcing HR is probably an excellent option for most small businesses.

Ari Rosenstein is the Director of Marketing at CPEhr, a Human Resource Services firm, specializing in outsourcing HR, servicing 15,000 employees and hundreds of clients nationwide.CPEhr was founded in 1982 and assists small employers with the management of their employees. It provides an array of HR services including compliance with labor law in California, employment administration, employee health insurance benefits, safety consulting, training, recruiting and payroll and tax services.
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