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Regardless of size, most businesses are susceptible to employment
exposures.
Understand that the trend in federal, state and local employment
laws is to expand the available protections for employees, including employees of
the smallest of businesses. As a result, even though your business may not be subject
to certain laws or provisions, such as federal statutes, your business may very
likely still be subject to state, local or common laws. Therefore, even if you have
a very small number of employees, you may still be susceptible to employment lawsuits.
Taking this a step further, determining whether or not your business has any employees
may ultimately be a legal question. An "employee" is defined as someone with whom
the employer has an employment relationship. The existence of an employment relationship
is most easily shown by a person's appearance on the employer's payroll, but this
alone does not necessarily answer the question.
Independent contractors are generally not counted as employees. However, determining
whether an individual is, under the law, an independent contractor, also is a legal
question that may not be as easy to answer as you might think. If you are unsure
whether your business is subject to federal, state or local laws, or whether an
individual who provides services to you is considered an employee under the law,
you should consult with an attorney.
Although the threshold for coverage under Title VII of the Civil Rights Act of 1964
is 15 employees, a federal appeals court recently announced a test for determining
when an employer with fewer than 15 employees may be subject to Title VII's anti-discrimination
provisions. Contact your attorney if you need more information.
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