Position your People for Purpose, Productivity & Profit: HR Compliance at 56 Employees: What Every CEO and COO Needs to Know
HR Compliance at 56 Employees:
What Every CEO and COO Needs to Know
As an HR leader, one of my primary responsibilities is to ensure we’re not just caring for our people—but also protecting the business. That means staying ahead of HR compliance and employment law obligations that shift as organizations grow.
Once your headcount crosses the 50-employee mark, you enter a new regulatory category. This is true whether you’re a for-profit or nonprofit—and overlooking compliance at this stage can result in serious legal and financial exposure.
Here’s a high-level breakdown of the top HR laws and compliance mandates that apply to organizations with 56 employees, along with key actions every executive team should prioritize.
🔑 1. FMLA (Family and Medical Leave Act)
Applies to: Employers with 50+ employees within a 75-mile radius
What it requires:
Eligible employees must be provided up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons—including personal illness, caring for a family member, or bonding with a new child.
C-Suite risk if ignored:
Wrongful termination, interference claims, and DOL audits. Even well-intentioned missteps can lead to six-figure settlements.
What you need to do:
Ensure managers are trained to recognize FMLA triggers
Maintain compliant FMLA documentation
Track eligibility and leave consistently across teams
📊 2. ACA (Affordable Care Act) Reporting Requirements
Applies to: Employers with 50+ full-time equivalent (FTE) employees
What it requires:
Applicable Large Employers (ALEs) must:
Offer affordable health insurance that meets minimum coverage standards
File Forms 1094-C and 1095-C annually with the IRS
C-Suite risk if ignored:
Noncompliance can lead to IRS penalties of up to $2,970 per employee (2024) for not offering coverage.
What you need to do:
Work closely with your benefits broker or HRIS vendor to ensure compliance
Track FTE status accurately—especially for variable-hour employees
Submit ACA forms on time and ensure accuracy
🧾 3. EEO-1 Reporting
Applies to: Private employers with 100+ employees or federal contractors with 50+ employees
Nonprofits and for-profits: If you’re a federal contractor (including grants), this likely applies to you at 56 employees.
What it requires:
Annual reporting of your workforce’s race, ethnicity, sex, and job category breakdowns to the EEOC.
C-Suite risk if ignored:
Missed filings can lead to audits, penalties, and impact your ability to secure government contracts or funding.
What you need to do:
Confirm whether you're a qualifying federal contractor
Ensure accurate employee self-identification data is collected and secured
Align your HRIS system to generate EEO-1 categories for reporting
💵 4. Equal Pay and Pay Transparency Laws (State-Specific)
Applies to: Varies by state—but many laws kick in at 15, 25, or 50 employees
Examples:
California, Colorado, New York, Illinois and other states now require pay transparency in job postings
Many states require equal pay audits or allow employees to discuss wages without retaliation
What you need to do:
Conduct an internal pay equity audit to identify and correct disparities
Update job postings to comply with pay range disclosure laws
Train managers on wage transparency and anti-retaliation best practices
Note to C-suite: Pay equity isn't just compliance—it's a brand and talent strategy issue.
🧑⚖️ 5. Title VII, ADA, and ADEA Compliance
Applies to: Employers with 15+ (Title VII, ADA) and 20+ (ADEA) employees
Even at 56 employees, you’re firmly under the umbrella of federal anti-discrimination laws:
Title VII: Prohibits discrimination based on race, color, religion, sex, or national origin
ADA: Requires reasonable accommodations for employees with disabilities
ADEA: Protects workers aged 40+ from age discrimination
C-Suite takeaway:
Discrimination and retaliation claims continue to be among the most expensive and brand-damaging legal risks facing companies today.
What you need to do:
Implement annual anti-harassment training
Create a confidential, well-documented complaint process
Ensure all job descriptions and practices align with ADA standards
📚 6. Wage and Hour Compliance (FLSA and State Laws)
Applies to: All employers
Misclassification and overtime pay errors are among the most common—and costly—HR compliance pitfalls for mid-sized employers.
Key areas of focus:
Exempt vs. non-exempt classification
Accurate time tracking and meal/rest break compliance
Correct payment of overtime, bonuses, and reimbursements
State-specific rules (e.g., split-shift pay, predictive scheduling, etc.)
What you need to do:
Conduct regular audits of job classifications and pay practices
Train supervisors on wage and hour policies
Document all timekeeping procedures to ensure defensibility
🧭 7. Harassment Prevention and Reporting Mechanisms
Applies to: All employers, but especially critical post-#MeToo and amid increasing state requirements
Many states now mandate harassment prevention training and require specific reporting mechanisms to be in place.
For example:
California, Connecticut, Illinois, New York have mandatory training laws for employees and supervisors
Some states and localities require anonymous reporting tools
C-Suite priority: Reputational risk is high. Just one unresolved incident can go public—and cost more than just money.
What you need to do:
Offer compliant harassment and discrimination training
Establish clear, confidential reporting processes
Take swift, consistent action on every complaint
⚖️ 8. State-Specific Leave and Sick Time Laws
Applies to: Varies, but most states and cities now have laws in place
Even if you offer PTO, state-mandated sick leave laws often have additional accrual, usage, and carryover rules.
Don’t assume one PTO policy works nationwide—especially for multi-state operations.
C-Suite impact: Noncompliance results in wage claims, lawsuits, and audits—especially in progressive labor states.
What you need to do:
Regularly review leave laws in each state where you have employees
Use an HRIS to track sick leave separately from vacation/PTO
Educate managers on proper usage and accrual caps
✅ Final Thoughts: Compliance is Not Just HR’s Job
At 56 employees, your organization is officially too big to wing it. Compliance is no longer just about avoiding fines—it’s about risk mitigation, operational efficiency, and brand integrity.
As HR leaders, we’re ready to own this process. But we need executive-level partnership to:
Allocate appropriate HR technology and legal resources
Prioritize training and culture alignment
Support accountability across departments
HR compliance is a shared responsibility. With the right systems in place, we can stay ahead of the curve—and build a workplace that’s both lawful and exceptional.