Business laws

Which Business Laws Apply by Employee Count

See which federal, Illinois and Cook County business laws apply at 1, 4, 15 or 20 employees, with a bar chart, a table and links to each law.

Last reviewed October 29, 2026 · General information, not legal advice

General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.

Many business laws switch on at a set headcount, and each counts in its own way. This page lines up the employee-count tests in this section. Try the Weeks-and-Heads Tally: list who was on the payroll in each week of the current and prior year, then compare that count with each rule.

Minimum employees before each law applies employees needed to be covered, October 2026
Illinois Wage Payment and Collection Act1
Illinois Human Rights Act1 (20 weeks for most claims)
Federal OSHA1
Cook County Paid Leave Ordinance1
Cook County Human Rights Ordinance1
Fair Labor Standards Act (enterprise coverage)2 plus $500,000 in sales
Illinois Minimum Wage Law4
Cook County Minimum Wage Ordinance4
Title VII15 for 20 weeks
ADA Title I15 for 20 weeks
Illinois Equal Pay Act postings15
ADEA20 for 20 weeks

Source: statutes named in the table below

Statutes and other size tests

Law and statuteCounting ruleOther size tests
Title VII (sec. 701(b))15 employees, 20 weeksCombined damages caps: $50,000 (15 to 100 employees), $100,000 (101 to 200), $200,000 (201 to 500), $300,000 (over 500)
ADA (42 U.S.C. 12111(5))Title I: 15 employees, 20 weeksTitle III, for businesses open to the public, has no employee minimum
ADEA (29 U.S.C. 630(b))20 employees, 20 weeksWorkers 40 and older; state and local governments are named too
FLSA (29 U.S.C. 203(s))Enterprise coverage: 2 employees and $500,000 in salesNo sales test for hospitals, schools, care facilities and government agencies; individual coverage also exists
OSHA (29 U.S.C. 652(5))1 employeeWith 10 or fewer employees all last year, no routine injury logs; fatality and hospitalization reports still apply
FICA (26 U.S.C. 3101)No minimumFUTA, a separate tax, applies at $1,500 of wages in a quarter, or an employee in 20 weeks (current or prior year)
Corporate Transparency Act (31 U.S.C. 5336)Exempt if over 20 full-time U.S. employees, a U.S. office and over $5,000,000 in U.S. receiptsU.S.-formed companies out since March 26, 2025; foreign ones still report unless exempt
Illinois Human Rights Act (775 ILCS 5/2-101)1 employee, 20 weeksNo 20-week test for sexual harassment, pregnancy and some disability claims
Illinois Minimum Wage Law (820 ILCS 105/3)4 employees, owner's family excluded1 for domestic workers
Illinois Equal Pay Act (820 ILCS 112/10)15 employeesPay scales in job postings since January 1, 2025
Cook minimum wage (Code 42-12; Commission Rules 3.01)4 employees, plus a Cook County facility or county license1 for domestic workers

In the chart, five laws start at one employee: the Illinois Wage Payment and Collection Act, the Illinois Human Rights Act, OSHA, the Cook County Paid Leave Ordinance and the Cook County Human Rights Ordinance. The Consumer Fraud Act and FTC Act have no headcount test. FMLA and COBRA are outside this section.

Frequently asked questions

Do anti-discrimination laws reach a business with fewer than 15 employees?

Some do. Title VII and the employment part of the ADA start at 15 employees, but the Illinois Human Rights Act covers employers with one or more employees (20 weeks for most claims), and the Cook County Human Rights Ordinance covers employers with one or more employees based or doing business in Cook County.

How are employees counted for the 15 and 20 thresholds?

Title VII, the ADA and the ADEA count employees on each working day in each of 20 or more calendar weeks, in the current or preceding calendar year. Who counts can be a legal question for part-timers, owners or contractors.

Does the ADA apply to a business with five employees?

The employment rules in Title I need 15 employees. Title III, the public-access part, has no employee or revenue minimum and covers businesses open to the public, such as stores, restaurants and accountants' offices.

Official sources

This page is a plain-language summary. The official source controls if there is any difference.