Federal Labor Laws-How are EEs counted?

belcanto

I have been told that various Federal Labor Laws apply based on the number of employees within a company. I recently learned that 20 employees is the magic number for COBRA to apply. I also learned that COBRA doesn't necessarily apply the day you reach 20 employees, but there is a formula to follow to determine when an employer truly has COBRA responsibilities. Since there are so many different Federal Laws that apply based on number of employees, is there an EASY way that I can find out exactly how the employees are defined for each of these laws? In other words, do only Full Time employees count, but not Part Time? Is the employee count based on the number of FT/PT employees at the end of the year (e.g., 12/31) or some other date or timeframe? Is COBRA the only Federal Law that uses a special formula to determine when the employer has reached that "20 employee" mark and therefore required to offer COBRA. Help!

System

I think every law has its own definition of "employee." I think FMLA has a funny way of counting when you have multiple locations. FLSA and OSHA apply if you're engaged in "interstate commerce," which means almost everyone. I'd think that you'd always count part-time employees, but I'm not sure.

James Sokolowski
Senior Editor
M. Lee Smith Publishers

cmergl

Just checked my one of my handy employment law books. For COBRA it says that part-time & full-time employees are to be counted in the 20 or more amount, and you must count all employees regardless of whether or not they have medical & dental coverage. There is also a "small-employer plan exception". This would apply in any calendar year to employers with fewer than 20 employees during the preceding calendar year. To determine if you qualify for this exception, be careful to count all employees. And don't forget employees who may work for an affiliated company.

For FMLA: employers are subject to this if they have 50 or more employees, and you must also count both full & part time employees for this as well.

Hope this helps!