Your company has 12 employees and wants to establish an employee handbook. Which federal employment laws would apply to your company?
Correct Answer
A) 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 B: 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 D: 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.
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
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?
People Also Study
Related Study Resources
Previous Question
An employee works 45 hours in a week at $25 per hour. Federal withholding is $180, state withholding is $45, and health insurance deduction is $75. What is the net pay?
Next Question
A general contractor has accounts receivable of $125,000 with the following aging: 0-30 days ($85,000), 31-60 days ($25,000), 61-90 days ($10,000), and over 90 days ($5,000). What percentage of total receivables is considered current (0-30 days)?