To Grow or Not to Grow – What Regulations Apply as Your Business Scales?

In recently talking with a benefits broker colleague, he mentioned a client who was worried about growing too big and hitting the “50 employee” mark. You might ask, “Why would a business be worried about having more than 50 employees?”  The concerns of business owners are the additional labor regulations and benefit requirements that come with having more than 50 employees.

The ability to remain viable in our current climate is a challenge for most businesses, but that doesn’t mean employers should let compliance dictate their desire to grow. This is particularly true for organizations with 25 or more employees, as most of the governing laws and regulations that apply to this employee size is almost the same for organizations with 50 or more employees, with some exceptions.  For example, California employers with 50 or more employees may be subject to affirmative action, FMLA and CFRA leaves, as well as a few other regulations. Although FMLA and CFRA can be daunting to understand and manage, employers shouldn’t be limited by these regulations. 

My advice to employers is to not be “afraid” of the regulations as you grow, but to be “aware” of the regulations that apply to you. Also, make sure you have an experienced HR advisor navigating you through your growth to create the appropriate infrastructure for your business so that you can effectively and compliantly grow.

360HRPros has extensive knowledge and experience in helping businesses grow, including extensive knowledge on leave of absences and how they apply to your business.  Contact us today for more information.