Which laws apply to my business by number of employees?
A one-page lookup of the headcount lines in federal, Illinois and Cook County law, from one employee to twenty, with the counting rules that decide where you fall.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 29, 2026.
Many business laws start at a set number of employees, and each counts heads in its own way. This page sets out the main lines, and our Headcount Staircase Walk keeps your own count straight.
- Five laws in the chart start at one employee, and FICA payroll tax has no headcount floor.
- Minimum wage laws in Illinois and Cook County start at four employees, Title VII and the ADA job rules at 15, and the ADEA at 20.
- Some lines add dollars to the headcount: the FLSA's $500,000 and the Corporate Transparency Act's $5,000,000.
Source: U.S. Code, Illinois statutes, Cook County Code and Rules
How each count works
| Law | The line | How the count works |
|---|---|---|
| Title VII, ADA job rules, ADEA | 15, 15 and 20 employees | Each working day in 20 or more calendar weeks, this year or last; the ADEA's 20 is for private employers, as it names governments separately |
| Illinois Human Rights Act | 1 employee | In Illinois for 20 or more weeks, this year or last; sexual harassment, pregnancy and some disability claims need no weeks test |
| FLSA | 2 employees and $500,000 a year | Enterprise coverage; hospitals, schools and government agencies need no sales figure; workers in smaller firms can still be covered one by one |
| Federal OSHA | 1 employee | A company with 10 or fewer at all times last year skips routine injury records only |
| Minimum wage | Illinois 4; Cook County 4 | Illinois skips fewer than 4, not counting the owner's close family; Cook counts all employees and needs a Cook site or license (County web pages say "all employers"); both cover domestic workers at one |
| Illinois Wage Payment Act, Cook paid leave, Cook human rights | 1 employee each | No size test; the Cook rules reach work or business in the county |
| Illinois pay posting | 15 employees | Pay scale and benefits in job postings, since January 1, 2025 |
| FICA and FUTA | FICA none; FUTA $1,500 | FUTA: wages of $1,500 in a quarter, or one employee on 20 days in different weeks, this year or last |
| Corporate Transparency Act | Over 20 full-time U.S. employees | The large-company exemption also needs over $5,000,000 in U.S. receipts and a U.S. office; since March 26, 2025, U.S.-formed companies file no reports, while foreign companies registered here still report their non-U.S. owners unless exempt |
| EEO-1 report | 100 or more employees | A July 23, 2026 proposal to rescind the rule was not final by October 27, 2026 |
Our checklist
The Headcount Staircase Walk has four steps.
- Count the way the law counts: by weeks, by yearly peak or by every employee.
- Check the place: Illinois work, Cook County work, Chicago, or a suburb with its own rules.
- Check the dollars: sales, U.S. receipts and quarterly wages.
- Redo it each January, and before a hire takes you across a line.
Mistakes people make
- Using 15 as the line for every discrimination law, when the ADEA starts at 20 and Illinois at one.
- Counting only Cook County staff for the Cook wage test.
Talk to an attorney before relying on a size line in a claim, a notice or a layoff.
Common questions
Does a business with fewer than 15 employees avoid job discrimination laws?
No. The Illinois Human Rights Act can reach an employer with one employee. The Cook County Human Rights Ordinance also covers employers of one or more based or doing business in the county.
Does the ADA skip businesses with fewer than 15 employees?
Only its job rules. Title III has no employee minimum; it covers stores, restaurants and offices open to the public.
What if my headcount changes during the year?
Several tests look back: this year or last for Title VII, the ADA, the ADEA and the Illinois Human Rights Act, and all of last year for OSHA's 10-or-fewer test.
Official sources
- Cornell Law School: 42 U.S.C. 2000e, Title VII definitions
- Cornell Law School: 29 U.S.C. 203, FLSA definitions
- Illinois General Assembly: Illinois Human Rights Act, 775 ILCS 5
- Illinois General Assembly: Minimum Wage Law, 820 ILCS 105/3
- Cook County: Minimum Wage Ordinance and Regulations
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