Your company has 12 employees and wants to establish an employee handbook. Which federal employment laws would apply to your company?
Correct Answer
C) Title VII, ADA, and ADEA do not apply
Companies with fewer than 15 employees are not covered by Title VII, ADA, or ADEA. However, FLSA wage/hour laws and OSHA safety requirements still apply to smaller employers.
Why This Is the Correct Answer
CORRECT_ANSWER - Federal employment laws have specific employee thresholds for coverage. Title VII (discrimination), ADA (disability), and ADEA (age discrimination) all require 15 or more employees to apply. With only 12 employees, this company falls below the threshold for these major civil rights laws. However, other federal laws like FLSA (wage/hour) and OSHA (safety) apply regardless of company size.
Why the Other Options Are Wrong
Option A: All federal employment laws apply regardless of size
This is incorrect because federal employment laws have varying employee count thresholds. Major laws like Title VII, ADA, and ADEA require 15+ employees, while FMLA requires 50+ employees. Not all federal laws apply to companies of every size.
Option B: Only OSHA and wage/hour laws apply
This answer is incomplete. While OSHA and FLSA wage/hour laws do apply to smaller employers, other federal laws may also apply depending on the specific circumstances and employee count thresholds.
Option D: Only state employment laws apply
This is incorrect because federal employment laws still apply to smaller employers, just not all of them. Laws like FLSA, OSHA, and others apply regardless of size, while state laws are additional requirements, not replacements for applicable federal laws.
Memory Technique
Remember 'TAA-15': Title VII, ADA, ADEA all require 15 employees. FLSA and OSHA are 'Always On' regardless of size.
Reference Hint
Business and Law chapter covering federal employment law requirements and employee thresholds
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