The big federal steps come at 15, 20, 50 and 100 employees. At 15, Title VII, the ADA and the genetic information law apply. At 20, the age discrimination law and COBRA. At 50, FMLA and the ACA employer mandate. At 100, the EEO-1 report and the WARN Act. Seasonal staff count, and many states start earlier, some at one employee.
A pest control company that staffs up in spring can cross several of these lines in one season. The number that matters is not how many people work there today, because each law counts differently.
How employees are counted
For the discrimination laws, the EEOC counts everyone on your payroll, full-time or not. An employer is covered under Title VII or the ADA if it has 15 or more employees for each working day in 20 or more calendar weeks, in the year of the alleged discrimination or the year before. The weeks do not need to be consecutive. Part-timers count: someone who works only Mondays and Wednesdays counts as an employee for the whole week (EEOC threshold guidance). Independent contractors and former employees do not.
That 20-week test matters for seasonal businesses, because a spring and summer surge can easily last more than 20 weeks.
Other laws count differently. FMLA uses the same 20-workweek idea. The ACA counts full-time employees plus full-time equivalents, averaged over the prior year. WARN leaves out most part-time and short-tenure workers. Each is below.
The checklist, step by step
15 employees: Title VII, the ADA and GINA
At 15 employees, federal law bars discrimination based on race, color, religion, sex (including pregnancy, sexual orientation and gender identity), national origin, disability and genetic information, and bars retaliation against anyone who complains, files a charge or takes part in an investigation (EEOC). Title VII covers the first five grounds, the ADA covers disability and requires reasonable accommodation, and Title II of the Genetic Information Nondiscrimination Act (GINA) covers genetic information, including family medical history (EEOC GINA Q&A). For a pest control company, the ADA questions come up around driving, lifting and crawl-space work, so your job descriptions need to say what the essential functions really are.
20 employees: age discrimination and COBRA
The Age Discrimination in Employment Act, which protects workers 40 and older, applies to private employers with 20 or more employees (EEOC). COBRA, which lets people keep your group health plan for a time after they leave, applies to group health plans of employers with 20 or more employees in the prior year (US DOL). If you offer health insurance, COBRA notices become part of every separation, including slow-season layoffs.
50 employees: FMLA and the ACA employer mandate
FMLA covers private employers with 50 or more employees in 20 or more workweeks in the current or previous calendar year. A covered employer owes eligible employees up to 12 workweeks of unpaid, job-protected leave in a 12-month period. To be eligible, an employee must have worked for you at least 12 months, have at least 1,250 hours in the past 12 months, and work at a location with at least 50 employees within 75 miles (US DOL). A company can be covered while some branches have nobody eligible.
The ACA employer mandate applies to an “applicable large employer”: at least 50 full-time employees, including full-time equivalents, on average during the prior year. Full-time means at least 30 hours a week or 130 hours in a month. To get equivalents, add the monthly hours of everyone else, counting no more than 120 hours per person, and divide by 120 (IRS).
One exception matters to seasonal businesses. If your workforce goes over 50 for 120 days or fewer in the year, and the people above 50 during that period are seasonal workers, you are not an applicable large employer. A summer surge of more than 120 days does not qualify.
100 employees: EEO-1 and WARN
The EEO-1 Component 1 report, a yearly count of your workforce by job category, sex and race or ethnicity, is required from private employers with 100 or more employees, and from federal contractors with 50 or more that meet certain criteria (EEOC). As of November 5, 2026, the EEOC had not posted dates for the 2025 collection.
The WARN Act applies to employers with 100 or more employees and requires at least 60 calendar days’ written notice before a covered plant closing or mass layoff. Workers who have worked less than six months in the last 12, or who average less than 20 hours a week, are generally not counted (US DOL). Plan any large end-of-season layoff with that rule in front of you.
A worked example
The company here is invented. It has 12 year-round employees. Each spring it adds 6 technicians and 4 door-to-door sellers who stay on payroll from the first week of April to the end of September, about 26 weeks.
- For about 26 weeks, the payroll shows 22 people. That is 15 or more for more than 20 weeks, so Title VII, the ADA and GINA apply. It is also 20 or more for more than 20 weeks, so the age discrimination law applies.
- The company never reaches 50, so FMLA and the ACA employer mandate do not apply yet.
- If the sellers are treated as 1099 contractors but actually work under the company’s direction, a court or agency may count them as employees, and the count changes. See whether door-to-door reps can be 1099.
The owner who looks at a January payroll of 12 thinks none of this applies. The law looks at the whole year.
States that start earlier
For many small businesses, the state law arrives first. Some examples, as of November 5, 2026:
- California: the state’s discrimination law applies at five employees, and its ban on harassment applies to every workplace, even those with fewer than five employees (California Civil Rights Department).
- Utah: the Utah Antidiscrimination Act covers employers with 15 or more employees within the state for each working day in 20 or more calendar weeks in the current or preceding year (Utah Code 34A-5-102), and fewer for some national origin, citizenship and equal pay claims (Utah Labor Commission). The 2025 bill SB 86 was introduced to lower the number to five, but the version that passed kept 15 and instead amended the definition of sexual harassment, effective May 7, 2025 (SB 86, enrolled).
- Paid sick leave: New Jersey requires it of all employers regardless of size (P.L. 2018, c. 10). Massachusetts requires paid leave at 11 or more employees (G.L. c. 149, s. 148C). Connecticut covers 11 or more now and every employer from January 1, 2027 (CT DOL). See the state-by-state sick leave guide.
- Wisconsin has its own family and medical leave law for employers with 50 or more permanent employees (Wisconsin DWD).
Every state you operate in has its own list. Check each one, because a branch in a new state can bring in a law that your home state does not have.
Counting mistakes to avoid
- Counting only full-timers. The discrimination laws count part-time and seasonal staff for every week they are on payroll.
- Counting in January. The tests look at weeks across the year, or the prior year’s average.
- Leaving out other locations. The EEOC counts everyone on your payroll, wherever they work. FMLA eligibility adds its own 75-mile test on top of the company count. Utah’s own law counts employees within the state.
- Waiting until the threshold to build the paperwork. FMLA forms, COBRA notices and an accommodation process take time to set up. Build them before you need them.
What to do this week
- Pull last year’s payroll and count employees week by week. Mark every week at 15, 20 and 50 or more.
- For the ACA, add up monthly full-time employees and equivalents for the prior year, and note how long any surge above 50 lasted.
- List every state you have employees in and check its thresholds for discrimination, leave and sick pay.
- Write down the next threshold you will cross and what has to be in place when you do.
SimplyHR works with small businesses of 1 to 500 employees on federal and multi-state compliance. The Foundation retainer includes a core handbook with state addendums, federal and state compliance templates, and an HR audit and risk assessment. If you are close to a threshold and are not sure what changes, the free 12-question HR diagnostic is a good first step, or you can book a call. If you run a pest control company, see how we work with the industry.
This article is general information as of November 5, 2026, not legal advice. Coverage depends on your exact headcount and facts.