Hiring laws at 15 staff, 20 staff, and age 40

Some federal hiring laws start at 15 employees, the age law starts at 20 employees, and age 40 is a separate test for the worker.

Key takeaways before you apply a hiring law

• Before you apply a hiring law to the next opening, check the specific staff-count line and the age line for the rule you are using.
• Use the fifteen-employee line for Title VII and disability coverage, and the twenty-employee line for age coverage.
• Treat age 40 as the worker's age, separate from the firm's staff count.
• Use 4 to 14 employees for national-origin coverage of smaller employers, and 4 or more for citizenship status, verification, and retaliation.

An employer must have a certain number of employees to be covered by the laws we enforce, according to U.S. Equal Employment Opportunity Commission.

Some hiring laws start at 15 staff, some at 20, and the age line is separate

The coverage number is not a single fixed figure for every workplace. It varies depending on the type of employer and the kind of discrimination alleged, according to U.S. Equal Employment Opportunity Commission. The type of employer includes whether the entity is a private company, a state or local government agency, a federal agency, an employment agency, or a labor union. The kind of discrimination alleged includes race, color, religion, sex (including pregnancy, transgender status, and sexual orientation), national origin, age (40 or older), disability, or genetic information.

For a staffing firm, this means the threshold depends on which specific law you are checking for the next opening. A rule that applies to race discrimination might have a different employee count than a rule that applies to age discrimination. The age line is distinct because it refers to the worker being 40 or older, not the firm's size. You must check the specific statute for the specific type of discrimination you are addressing. Do not assume one number covers all hiring decisions. The EEOC page states that the number varies based on these two factors: employer type and discrimination type.

See salary history questions if the application asks about earlier pay.

The 15-employee line and the 20-employee line

Federal hiring laws use different staff-count thresholds to determine when an employer must comply with specific anti-discrimination rules. Two distinct lines appear in the supplied sources: a fifteen-employee threshold and a twenty-employee threshold. You must identify which line applies to your firm before applying a specific law to your next opening.

The fifteen-employee line appears in Title VII of the Civil Rights Act of 1964. According to U.S. Equal Employment Opportunity Commission, this law prohibits employers with at least 15 employees, as well as employment agencies and unions, from discriminating in employment based on race, color, religion, sex, and national origin. The Americans with Disabilities Act of 1990, As Amended also uses this fifteen-employee count. According to U.S. Department of Justice, the term “employer” means a person engaged in an industry affecting commerce who has 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year, and any agent of such person. The same source notes that for two years following the effective date of this subchapter, an employer means a person engaged in an industry affecting commerce who has 25 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding year, and any agent of such person. Additionally, according to U.S. Department of Justice, Title I requires employers with 15 or more employees to provide qualified individuals with disabilities an equal opportunity to benefit from the full range of employment-related opportunities available to others.

The twenty-employee line applies to the Age Discrimination in Employment Act of 1967. According to U.S. Equal Employment Opportunity Commission, the term "employer" means a person engaged in an industry affecting commerce who has twenty or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year. This definition includes a provision that prior to June 30, 1968, employers having fewer than fifty employees shall not be considered employers. The U.S.C. Title 29 - LABOR source provides the identical definition. According to GovInfo, the term "employer" means a person engaged in an industry affecting commerce who has twenty or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year, with the same provision regarding employers having fewer than fifty employees prior to June 30, 1968.

The age-40 line is not the same as the staff count

The Age Discrimination in Employment Act (ADEA) forbids age discrimination against people who are age 40 or older, according to U.S. Equal Employment Opportunity Commission. This threshold applies to the worker's age, not the firm's size. It does not protect workers under the age of 40, although some states have laws that protect younger workers from age discrimination, according to U.S. Equal Employment Opportunity Commission. The prohibitions in this chapter shall be limited to individuals who are at least 40 years of age, according to GovInfo.

The staff count determines whether other laws apply, but it does not change the age requirement for this statute.

Do not assume that state laws mirror this federal age limit. If your firm operates in a state with broader protections, you must check those local rules separately.

Keep your interview notes focused on job-related criteria. See hiring decision notes when you record the decision.

Smaller firms still have a citizenship and national-origin rule

Firms with fewer than fifteen employees are not exempt from every federal hiring rule. The Immigration Reform and Control Act of 1986 (IRCA) prohibits discrimination on the basis of national origin by smaller employers (with 4 to 14 employees), according to U.S. Equal Employment Opportunity Commission. This coverage line applies to firms that fall below the fifteen-employee threshold used by other statutes. If your staffing agency has between four and fourteen people on the payroll, this specific national origin protection under IRCA applies to your hiring practices.

The same source notes that employers with 4 or more employees (and recruiters and referrers for a fee) are also prohibited from discriminating on the basis of citizenship status; discriminating in the employment eligibility verification process; and retaliating under IRCA, according to U.S. Equal Employment Opportunity Commission. This rule covers the verification process itself, not just the final hiring decision.

One important distinction appears in the definition of who is covered. People who are not employed by the employer, such as independent contractors, are not covered by the anti-discrimination laws, according to U.S. Equal Employment Opportunity Commission. This statement identifies independent contractors as a group not covered by these specific anti-discrimination laws. It does not provide a test for who is a contractor. If your firm uses independent contractors for specific tasks, this quoted line indicates they are not covered by the anti-discrimination laws described in this section.

Check your payroll records to determine if you have four or more employees. Write down your headcount and note that the four-employee line is the lowest threshold mentioned in these scoped facts. This ensures you are applying the correct rules to your next opening.

Filled reference table of each publisher's coverage line

The table below lists the specific coverage lines found in the supplied sources. Each row identifies the publisher, the exact threshold or age line stated in their text, and the source page where that statement appears. Use this table to match your firm's headcount and the age of the worker to the correct legal provision.

Review the rows above to identify which thresholds apply to your current payroll. The fifteen-employee line appears in the Title VII and Americans with Disabilities Act entries, while the twenty-employee line appears in the Age Discrimination in Employment Act entries. The age-40 line is distinct from the staff count and applies to the individual worker. The genetic information entry notes the effective date but does not state a specific employee count in the provided quote.

Check your typical weekly payroll count against the fifteen and twenty employee lines before applying these rules to a new opening. If your firm has fewer than fifteen employees, the Title VII and ADA Title I coverage lines in this table do not apply to your staff count. If you have between fifteen and nineteen employees, the fifteen-employee lines apply, but the twenty-employee lines for the Age Discrimination in Employment Act do not. If you have twenty or more employees, both the fifteen-employee and twenty-employee lines apply.

Illustrative example of weekly payroll counts

These figures are illustrative. At 10 people, the week is below the 15-employee line and below the 20-employee line. It is inside the 4 to 14 band, so national-origin coverage for smaller employers applies, and citizenship, verification, and retaliation coverage applies from 4 employees up. At 15 people, only the 15-employee line is met. At 20 people, both staff-count lines are met, and age 40 is the worker test.

A blank worksheet for this firm's headcount

Use the table below to record your typical weekly payroll count. The U.S. Equal Employment Opportunity Commission states that an employer must have a certain number of employees to be covered by the laws they enforce, according to U.S. Equal Employment Opportunity Commission. Write the number of people on your payroll for a typical week this year in the first column. Then mark whether that number meets the fifteen-employee line and the twenty-employee line. This record helps you see which coverage thresholds apply before you apply a specific hiring rule to your next opening.

Count the people on the payroll for a typical week this year and write that number next to the fifteen-employee line and the twenty-employee line before you apply either law.

Hiring-law coverage FAQ

Which quoted laws use fifteen employees?

Title VII of the Civil Rights Act of 1964 prohibits employers with at least 15 employees from discriminating in employment based on race, color, religion, sex, and national origin, according to U.S. Equal Employment Opportunity Commission.

Which use twenty?

The Age Discrimination in Employment Act defines an employer as a person who has twenty or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year, according to U.S. Equal Employment Opportunity Commission.

Is age forty the same test as the staff count?

No, the age line applies to the worker, not the firm size.

What did the coverage page say about firms with four employees?

Smaller employers with 4 to 14 employees are covered for national origin, and employers with 4 or more for citizenship status, verification, and retaliation, according to U.S. Equal Employment Opportunity Commission.

What do you write down today?

Write your typical weekly payroll count beside both staff-count lines. This simple check tells you which federal hiring laws cover your firm before you post the next opening.