HR guides
HR answers for small companies, from first hire to last day
Each guide answers one question a founder, operations lead or HR person at a small US company runs into: what the law requires, when it is due and what to do next. Every guide links to the official sources it relies on.
Data
HR laws by company size: what changes as you grow
Several federal employment laws apply to most employers from the first employee (minimum wage and overtime, Form I-9, payroll taxes, USERRA), and others start at 15 employees (Title VII, the ADA, the Pregnant Workers Fairness Act), 20 (age discrimination, COBRA), 50 (FMLA, Affordable Care Act employer rules) and 100 (EEO-1 reports, WARN layoff notices).
See the table →By state
HR laws by state
Pay ranges in job posts, sick leave, family leave and final pay deadlines for ten states, side by side.
Compare states →Hiring
Before the offer: classifying the role, the job post, background checks, hiring in a new state.
How to hire your first employee
To hire your first employee in the US, get a free Employer Identification Number (EIN) from the IRS, register with your state for payroll taxes and unemployment insurance, set up workers' compensation, and have the new hire complete Form W-4 and Form I-9 (you finish Section 2 of the I-9 within three business days of their first day).
Read the guide →Contractor or employee? How to classify a worker
A worker is usually an employee, not an independent contractor, when you control how the work is done and they depend on your business rather than running their own.
Read the guide →How to write a job post with a pay range (pay transparency laws)
As of October 2026, employers must include a pay range in job posts in California, Colorado, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Vermont, Virginia and Washington, plus the District of Columbia and New York City, with size thresholds that run from one employee to 50.
Read the guide →How to run a background check on a job candidate legally
To run a background check through a screening company legally, the Fair Credit Reporting Act (FCRA) requires you to give the candidate a stand-alone written disclosure and get their written permission first.
Read the guide →How to hire a remote employee in another state
To hire a remote employee in another state, register as an employer in that state for unemployment insurance and, if it taxes wages, state income tax withholding; make sure workers' compensation covers them there; report the hire to that state's new-hire directory within 20 days or its shorter deadline; and follow that state's wage, leave, pay transparency and notice rules.
Read the guide →
Onboarding
The paperwork every new hire needs, and when each piece is due.
New employee onboarding checklist (the paperwork you need)
Every new employee needs a Form I-9 (the employee completes Section 1 by their first day of work, and you complete Section 2 within 3 business days) and a federal Form W-4, and you must report the hire to your state new-hire directory within 20 days of hire, or sooner where your state sets a shorter deadline.
Read the guide →Form I-9 and E-Verify: what employers must do
US employers must complete a Form I-9 for every employee hired after November 6, 1986, citizens included: the employee completes Section 1 by their first day of work, and you examine their documents and complete Section 2 within 3 business days.
Read the guide →New hire reporting: what to report and when
Federal law requires every employer to report each new and rehired employee to the state directory of new hires in the state where they work within 20 days of hire, and some states set a shorter deadline, such as Georgia (10 days) and Massachusetts (14 days).
Read the guide →Which labor law posters are required?
Most private US employers must display federal notices on the minimum wage (FLSA), job safety (OSHA), polygraph testing (EPPA) and military service rights (USERRA); employers with 15 or more employees add the EEOC "Know Your Rights" poster, and employers with 50 or more employees add the FMLA poster.
Read the guide →Do I need an employee handbook?
No federal law requires a small business to have an employee handbook, but some laws require specific policies or notices in writing: for example, an FMLA-covered employer must include its FMLA notice in the handbook if it has one, New York requires every employer to give new hires a written sexual harassment prevention policy, and California requires a written harassment, discrimination and retaliation prevention policy.
Read the guide →
Pay
Payroll, overtime, exempt status and what is owed when someone leaves.
Exempt vs non-exempt: how to classify an employee
Under the federal Fair Labor Standards Act (FLSA), an employee is exempt from overtime only if they are paid a fixed salary of at least $684 a week ($35,568 a year) and their main job duties fit an exemption such as executive, administrative, professional or computer employee.
Read the guide →How to run payroll for your first employee
To run payroll for your first employee, get an Employer Identification Number (EIN), register with your state for withholding and unemployment tax, and collect a Form W-4.
Read the guide →Overtime rules: when you have to pay time and a half
Under the federal Fair Labor Standards Act (FLSA), you must pay non-exempt employees at least 1.5 times their regular rate for every hour over 40 in a workweek.
Read the guide →When is an employee's final paycheck due? (final pay laws by state)
There is no federal deadline for a final paycheck: the Fair Labor Standards Act (FLSA) does not require immediate payment, so state law sets the timing.
Read the guide →Do you have to pay out unused PTO when an employee leaves?
No federal law requires you to pay out unused vacation or paid time off (PTO) when an employee leaves, so it depends on state law and your written policy.
Read the guide →
Leave
Family and medical leave, sick leave and parental leave, federal and state.
How to handle an FMLA request, step by step
When an employee asks for leave that may qualify under the Family and Medical Leave Act (FMLA), a covered employer (50 or more employees in 20 or more workweeks this year or last) must send an eligibility notice and a rights and responsibilities notice within 5 business days, then a designation notice within 5 business days of having enough information to decide.
Read the guide →Which states require paid sick leave?
No federal law requires private employers to provide paid sick leave, but many states do, including Alaska, Arizona, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, Vermont, Washington and Washington, DC.
Read the guide →Which states have paid family and medical leave?
As of October 2026, state paid family and medical leave programs pay benefits in California, New York, New Jersey, Washington, Massachusetts, Connecticut, Oregon, Colorado, Delaware, Minnesota and Maine, plus Washington, DC, and Maryland's program is scheduled to start paying benefits on January 1, 2028.
Read the guide →Do small businesses have to offer maternity leave?
No federal law requires a private employer to offer paid maternity leave, and the Family and Medical Leave Act (FMLA), which gives 12 weeks of unpaid, job-protected leave, applies only at 50 or more employees.
Read the guide →
Offboarding
Ending employment fairly and legally: final pay, notices, COBRA and severance.
How to fire an employee legally (a checklist)
To fire an employee legally, make sure the reason is not discrimination or retaliation, document it, pay final wages by your state's deadline, and send the COBRA notice (20 or more employees with a group health plan) plus any separation notices your state requires.
Read the guide →Firing an employee in California: what the law requires
In California, a fired employee must be paid all final wages, including accrued unused vacation, immediately at the time of termination (Labor Code 201), and a willful delay can cost a penalty of one day's wages for each day late, up to 30 days (Labor Code 203).
Read the guide →Firing an employee in New York: what the law requires
In New York, a fired employee's final wages are due no later than the regular payday for the pay period in which the termination happened (Labor Law 191(3)).
Read the guide →Firing an employee in Texas: what the law requires
In Texas, a fired employee must receive final pay within six calendar days of discharge, and an employee who quits is paid on the next regularly scheduled payday (Texas Payday Law).
Read the guide →Employee offboarding checklist
When an employee leaves, pay final wages by your state's deadline, tell your health plan administrator within 30 days so the COBRA election notice goes out (if COBRA applies), and give any unemployment notice your state requires at separation.
Read the guide →When do you need to offer COBRA?
You must offer federal COBRA continuation coverage if your company has a group health plan and had at least 20 employees on more than half of its typical business days in the previous calendar year, counting part-time employees as fractions.
Read the guide →Do you have to pay severance? (and how to write a severance agreement)
No federal law requires a private employer to pay severance; it is a matter of agreement between you and the employee, unless your own policy, a contract or a state law such as New Jersey's mass layoff law requires it.
Read the guide →Do you need to give WARN notice before a layoff?
Under the federal WARN Act, you must give 60 days' written notice if you have 100 or more employees (not counting part-time workers) and you close a site affecting 50 or more workers, or lay off 500 or more workers, or 50 to 499 who make up at least 33 percent of the site's workforce.
Read the guide →
Compliance
Insurance, records and the rules that change with company size.
Do I need workers' compensation insurance?
If you have employees, you almost certainly need workers' compensation insurance.
Read the guide →How long do you have to keep employee records?
Under federal law, keep payroll records for 3 years, time cards and wage-rate records for 2 years, personnel and hiring records for at least 1 year, Form I-9 for 3 years after hire or 1 year after employment ends (whichever is later), employment tax records for at least 4 years, and OSHA injury logs for 5 years.
Read the guide →Do small businesses have to offer health insurance?
No federal law requires a business with fewer than 50 full-time employees (counting full-time equivalents) to offer health insurance.
Read the guide →
These guides are general information, not legal advice. Laws change and exceptions apply, so check the sources listed on each page or an employment lawyer before you act on a specific case.