Small Business Legal Center

Legal Fact Sheets

Discover the nuts and bolts of laws that affect your small business.

  • Age Discrimination in Employment Act
    The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years old or older from being fired, refused a job, forced to retire, and treated unfairly with payment, promotions, benefits, health care coverage, retirement plans, and other employment opportunities based on age. The ADEA only applies to employers with more than 20 employees.
  • Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
    BAPCPA, enacted in April 2005, changed how and under what conditions, individuals can file for bankruptcy. It will make it more difficult to file for Chapter 7 bankruptcy, which discharges all debts. More people will be required to file for Chapter 13 bankruptcy, which requires payment of the debt under a court-ordered payment plan over three to five years.
  • CAN-SPAM Act
    Spam emails have become a sad reality of most Internet users' online experiences. While there is no one conclusive story explaining the origins of the term "spam," it has come to mean any form of unwarranted e-mail correspondence. Spam has taken many shapes and many forms, and the cost of combating this deluge of unwanted e-mails has skyrocketed, costing businesses around the globe billions of dollars.
  • Disclosure of Group Health Plan Documents
    The health plan administrator is required under federal ERISA law to disclose specified plan documents within 30 days after a written request from the plan participant. For each day these documents are not provided starting 30 days after the written request was made, the courts are authorized to impose penalties of up to $110 per day on the plan administrator.
  • Do-Not-Call Alert
    Pursuant to its authority under the Telephone Consumer Protection Act (TCPA), the Federal Communication Commission (FCC) established, together with the Federal Trade Commission (FTC), a national Do-Not-Call Registry. The FCC regulations state that those who engage in "any telephone solicitation to a residential telephone subscriber" must have a "written policy, available upon demand, for maintaining a do not call list."
  • Do Not Fax: Telephone Consumer Protection Act and Junk Fax Prevention Act
    The Telephone Consumer Protection Act expressly prohibits unsolicited commercial phone calls and faxes. The Junk Fax Prevention Act amplifies the do-not-fax requirements in the TCPA. These acts can have very strong ramifications for small business owners who do not fully understand the rules and regulations regarding fax communications.
  • Early Retirement Income Security Act
    ERISA sets standards to ensure that employee benefits are established and maintained in a fair and financially sound manner. Employers are also required to provide promised benefits and manage private pension plans. The Department of Labor and the Internal Revenue Service have principal jurisdiction over the enforcement of ERISA.
  • Family and Medical Leave Act of 1993
    FMLA is a law that requires any business with 50 or more employees to provide up to 12 weeks of unpaid protected job leave for employees working for the company at least 12 months. The law is aimed at helping people that have to leave work because of unexpected medical problems that arise with them or their family.
  • Federal Trade Commission Act
    The Federal Trade Commission Act (FTCA) provides for the creation of a Federal Trade Commission and delineates the rights and responsibilities of its commissioners. The FTCA empowers the Commission to prevent and punish unfair commercial practices and to promulgate trade regulation rules.
  • Health Insurance Portability and Accountability Act of 1996
    The Health Insurance Portability and Accountability Act enhances the portability and continuity of health insurance coverage for groups and individuals and helps small firms purchase insurance polices in the individual market. The Act increases the deduction for health insurance costs of the self-employed. The Act also strengthens health care fraud and abuse controls, authorizes the creation of medical savings accounts, and allows for acceleration of death benefits.
  • HIPAA and Group Health Plan Mandates
    To reduce costs, a self-funded group health plan can exclude coverage for employees who sustain injuries resulting from the misuse of alcohol, but such exclusions will only be enforced in some situations. Compliance with the Health Insurance Portability and Accountability Act and other federal laws may override any provisions placed in a GHP that exclude employees suffering from a medical condition, such as alcoholism. Other than this narrow exception, such provisions can serve as a boon to small businesses attempting to implement cost-saving measures.
  • Intellectual Property
    Intellectual property refers to copyrights, patents and trademarks.
  • Occupational Safety and Health Administration Form 300A
    Employers with ten or more employees must post the OSHA Form 300A between February 1 and April 30. The form summarizes an employer’s reportable injuries and illnesses for the prior year. Employers are subjected to this requirement even if they had no reportable injuries or illnesses in the prior year.
  • Payroll Taxes
    When an employer distributes payroll checks to employees, the employer becomes a trustee to the U.S. government for any amount withheld. If the IRS uncovers problems in the deposit of payroll taxes, the government will ultimately hold the employer responsible. Outsourcing payroll services can eliminate many of the simple mistakes that result in IRS penalties. However, if a payroll provider causes a payroll error, then the IRS can still pursue taxes, penalties, and interest directly from the employer.
  • Sarbanes-Oxley Act
    In response to the mounting public concern created by the massive bankruptcies of corporations like Enron and Worldcom, Congress passed and the president signed into law the Sarbanes-Oxley Act of 2002. While dealing mostly with corporate bankruptcy law, Sarbanes-Oxley also created provisions to protect whistleblowers from being retaliated against by their employers. State and federal law already protected workers against employer retaliation for whistleblowing in situations related to health and safety, but Sarbanes-Oxley increased this coverage to include employees who report financial improprieties as well.
  • The Consolidated Omnibus Budget Reconciliation Act of 1986
    COBRA requires continuation coverage to be offered to covered employees, their spouses, their former spouses, and their dependent children when group health coverage would otherwise be lost due to certain specific events. Those events include any voluntary or involuntary employment changes and personal emergency events such as death or divorce.
  • The Fair and Accurate Credit Transactions Act
    Passed in December 2003, the Fair and Accurate Credit Transactions Act affects small business by limiting the amount of information that can be printed on a credit or debit card receipt. In addition, it is now mandatory for businesses to properly dispose of documents containing consumer information. The Federal Trade Commission enforces these regulations.
  • The Fair Credit Reporting Act
    Hiring and retaining qualified and honest employees is critical for the success of any business. A recent study showed that nearly half of all job applicants submitted false or inaccurate information to their potential employees. Every state has different laws regulating when and how an employer conducts a background check. Many businesses have turned to credit report agencies to conduct their background checks.
  • The National Labor Relations Act of the Wagner Act
    The National Labor Relations Act (NLRA) was enacted to encourage the practice and procedure of collective bargaining and to protect the workers’ rights to association, self-organization and negotiation of terms of employment through means of elected representatives. The Act provides for the administration of a National Labor Relations Board (NLRB), which oversees the implementation of this Act, and details the rights and duties of employers, employees and labor unions.
  • Uniformed Services Employment & Reemployment Rights Act
    USERRA is a law passed in October 1994 that affects all businesses regardless of size. The act stands up for the rights of service personnel who are called up for active duty. The law makes it illegal for an employer to not retain the position of a member of the armed forces who is called up for active duty.