Recruitment
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Small Business HR Guide: Compliance, Hiring Tips

Practical small business HR guide covering compliance thresholds, hiring tips, PEO comparisons, manager tools, and trusted links to official US and UK sources.

Welcome to the Simple HR Blog, built for small-business leaders who need clear answers fast. Here you’ll find practical HR guides, HR compliance updates, leadership advice, and side-by-side outsourcing insights for US and UK readers.

Key federal anchors: Title VII protections generally start at 15 employees. The FMLA generally applies at 50 employees within 75 miles. OSHA 300A summaries must be posted Feb 1–Apr 30 each year.

You’ll also see timely links to primary sources so you can verify details and act with confidence. Expect EEOC for anti‑discrimination rules, DOL for leave and wage‑hour guidance, OSHA for safety recordkeeping, USCIS for I‑9/E‑Verify, IRS for Certified PEO basics, GOV.UK for UK employment changes, and BLS JOLTS for labor benchmarks.

Bookmark this hub and return for fresh regulatory watch notes, templates, and decision frameworks.

Overview

This Simple HR Blog serves SMB owners, founders, and HR/operations managers who want practical, low‑jargon guidance that’s ready to use. We cover HR operations (payroll, benefits, workers’ comp), legal/compliance, people leadership, recruiting and retention, and change management. You’ll find evergreen pillars (law-by-size, outsourcing models), a running regulatory watch, and download‑ready checklists and scripts.

Use this blog for small business needs like onboarding, interview screening, and performance cycles. You’ll also get vendor‑neutral comparisons for PEO and alternatives. When legal thresholds matter, we anchor advice with official links so you can double‑check and adapt to your jurisdiction.

If you hire in the US and UK, we flag distinctions and point you to GOV.UK or ACAS for detail.

Latest updates and regulatory watch

We track concise, high‑signal changes that affect day‑to‑day HR decisions. Each item links to an official source so you can confirm the rule and timing before you act.

US highlights

US SMBs face cyclical posting and verification deadlines along with evolving agency guidance. Here are the top items to watch now.

  1. OSHA 300A posting: Display the previous year’s summary from Feb 1–Apr 30 in a conspicuous location and ensure totals match your OSHA 300 log. See OSHA recordkeeping guidance: https://www.osha.gov/recordkeeping.
  2. Title VII coverage: Most anti-discrimination protections begin at 15 employees. Check the statute overview on the EEOC site: https://www.eeoc.gov/statutes/title-vii-civil-rights-act-1964.
  3. FMLA threshold: The federal FMLA generally applies at 50 employees within 75 miles; verify employer duties with the DOL guide: https://www.dol.gov/agencies/whd/fmla/employer-guide.
  4. I‑9 and remote verification: E‑Verify participants may use the DHS alternative procedure for eligible hires; confirm current steps on USCIS I‑9 Central: https://www.uscis.gov/i-9-central.

As you plan audits, schedule reminders around February OSHA postings, spring handbook updates, and mid‑year I‑9 reviews.

UK highlights

UK employers should align recruitment and flexible work practices with current statutes and ACAS guidance. Here are the latest high‑impact themes.

  1. Flexible working: The UK expanded flexible working rights, including a day‑one right to request. See GOV.UK update: https://www.gov.uk/government/news/new-laws-give-workers-more-flexibility-over-where-and-when-they-work.
  2. Interviewing fairness: Review lawful question areas and reasonable adjustments; check ACAS and GOV.UK pages before recruiting drives.
  3. Holiday pay and recordkeeping: Keep an eye on statutory guidance for part-year and irregular hours workers, and update policies accordingly.

Revisit hiring and flexible working policies each quarter to keep pace with evolving guidance and case law.

HR compliance essentials by company size

Knowing when federal rules “turn on” helps you scale responsibly and avoid surprise risk. Below is a quick US map of common thresholds, with a short UK note where differences are material. Always verify against the EEOC, DOL, and OSHA pages linked throughout this hub.

US thresholds at a glance

At each headcount milestone, review your policies, postings, and training expectations.

  1. 5 employees: Begin formal safety practices and incident tracking; some state/local anti-harassment rules may trigger below federal thresholds.
  2. 15+ employees: Federal anti-discrimination coverage under Title VII generally applies; plan manager training and consistent documentation. Source: EEOC Title VII: https://www.eeoc.gov/statutes/title-vii-civil-rights-act-1964.
  3. 20+ employees: Federal COBRA continuation coverage typically applies; build a reliable offboarding and notice process. Source: DOL COBRA overview: https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra.
  4. 50+ employees (within 75 miles): FMLA generally applies; update leave policies, notices, and tracking. Source: DOL FMLA Employer Guide: https://www.dol.gov/agencies/whd/fmla/employer-guide.

Reassess your handbook and training at each threshold, and configure your HRIS to track eligibility automatically.

Recordkeeping and postings

OSHA logs matter even for small teams in non-exempt industries. The 300A summary is time‑bound.

OSHA 300A posting requirements in brief: Post the previous calendar year’s 300A summary from February 1 to April 30 in a conspicuous place where employee notices are typically displayed. Ensure it’s certified by a company executive and matches your OSHA 300 log. See: https://www.osha.gov/recordkeeping.

Common pitfalls include misclassifying recordable vs. reportable incidents and failing to retain forms for five years. Protect privacy cases when listing on the 300 log. Build a monthly cadence to reconcile incidents, verify classifications, and pre‑fill the 300A so February becomes a simple print‑and‑post step.

What is a PEO and when does it make sense?

A professional employer organization (PEO) is a co‑employment partner. It bundles payroll, tax administration, benefits, risk/safety, and HR compliance under one umbrella. The PEO becomes the employer of record for tax purposes while you retain day‑to‑day control of work.

Certified PEOs meet IRS standards; see the IRS CPEO overview: https://www.irs.gov/government-entities/cpeo.

PEOs can reduce admin load, improve benefits access, and tighten compliance. You’ll trade some vendor lock‑in and shared brand for scale and consistency.

A quick ROI view balances time saved, penalties avoided, and benefits buying power against admin fees. If you’re in a higher‑risk industry or planning multi‑state growth, a PEO often accelerates readiness.

  1. Fit checklist: You have 10–150 employees, operate in multiple states, face frequent compliance change, need better benefits rates, lack in‑house HR depth, or want consolidated payroll and workers’ comp with one partner.

If you prefer more control or already have HR depth, consider an ASO or selective outsourcing; see the comparison below.

PEO vs ASO vs payroll-only: key differences

  1. PEO (co‑employment): Bundled payroll/benefits/risk; tax filings under PEO; access to large‑group benefits; shared compliance depth; you manage daily work. Liability is shared via co‑employment agreements.
  2. ASO (administrative services only): HR advisory, payroll admin, and compliance support without co‑employment; you remain employer of record for taxes/benefits; more flexibility, less risk transfer.
  3. Payroll‑only: Core payroll calculation and tax filings; minimal HR compliance support; lowest cost, least scope; you handle benefits, policies, safety, and investigations in‑house.

Choose based on risk tolerance, internal capacity, benefits strategy, and the complexity of your footprint.

People leadership and culture fundamentals

Managers need simple tools that de‑risk tough moments while building trust. Start with clear expectations, timely feedback, and consistent recognition. Then add lightweight rituals like weekly 1:1s focused on priorities, blockers, and growth.

Recognition doesn’t need budget. Be specific about the behavior and impact, and deliver praise close to the event.

Watch for burnout signals such as sustained after‑hours work, rising error rates, or unplanned absences. Rebalance workload before performance dips.

Coaching should make the next step obvious: define the gap, co‑create a plan, schedule a checkpoint, and follow up. Over time, these habits reduce rework and improve retention.

Difficult conversations that improve performance

Use this 4‑step conversation framework to be clear and fair.

  1. Prepare and state the gap: Describe the observable behavior and impact.
  2. Hear their view: Ask open questions and reflect back key points.
  3. Align on a plan: Set one or two specific actions and a date.
  4. Close with commitment: Confirm support, resources, and the follow‑up meeting.

Example script: “I’ve noticed the last two client reports had missing sections, which caused rework for the team. What’s getting in the way? Okay, let’s pilot a pre‑submit checklist and a 24‑hour buffer. I’ll help you build the checklist today. Let’s review progress next Wednesday.”

The takeaway: clarity plus empathy beats vague warnings, and scheduling the follow‑up makes improvement measurable.

Hiring right: compliant interviews and fast onboarding

Run interviews that test job‑related skills and avoid protected characteristics. Create a consistent candidate experience. In the US, align with EEOC guidance on anti‑discrimination and accommodations. In the UK, confirm fair‑work and equality standards via GOV.UK and ACAS.

A simple interview screen template includes role outcomes, must‑have competencies, behavioral questions, and a scoring rubric.

Speed matters once you decide to hire. Use a 30‑60‑90 onboarding plan to structure ramp‑up. Pair the new hire with a buddy, and book quick‑hit training in week one. Confirm I‑9 steps for US hires and right‑to‑work for UK hires. Set early wins that map directly to role outcomes.

  1. 30‑60‑90 checklist: Day 1–30: Access, tools, buddy, role outcomes, one shipped deliverable. Day 31–60: Job‑specific training, cross‑team intros, feedback loop. Day 61–90: Stretch goal, customer exposure, formal check‑in, development plan.

Lawful vs unlawful interview questions (US/UK high-level)

Focus on job requirements and steer clear of protected characteristics across both jurisdictions.

  1. Age or date of birth → Ask: Are you over 18 and legally able to work?
  2. Marital status, children, or childcare → Ask: Can you meet our standard schedule or travel requirements?
  3. Health/disability specifics → Ask: This role requires lifting 30 lbs—are you able to perform this with or without reasonable accommodation?
  4. Nationality or birthplace → Ask (US): Are you authorized to work in the United States? Ask (UK): Do you have the right to work in the UK?
  5. Religious practices or days off → Ask: Our shifts include weekends; can you meet this requirement with or without accommodation?

When in doubt, tie every question to an essential function. Consult EEOC or GOV.UK/ACAS wordings before interviewing at scale.

HR metrics that matter for small businesses

Pick a small set of leading and lagging indicators and review them monthly. Voluntary turnover shows engagement health. Pair it with first‑90‑day attrition to spot onboarding gaps.

Time‑to‑fill and offer‑acceptance rate reveal recruiting friction and brand perception. Hiring manager satisfaction helps calibrate quality.

Track absenteeism and safety incidents to surface workload or training issues early. If you maintain OSHA logs, compare incident trends quarter‑over‑quarter. For context, follow BLS JOLTS to understand labor market openings, hires, and quits trends nationally: https://www.bls.gov/jlt/.

The goal isn’t perfect precision—it’s early detection and quick course correction.

Templates and checklists

Use these lightweight outlines to save time and standardize quality across managers.

  1. Onboarding checklist (30‑60‑90): Access and tools, role outcomes, buddy program, training cadence, early wins, and formal check‑ins.
  2. Performance review cycle: Quarterly goals, monthly 1:1s, mid‑cycle feedback, evidence collection, calibrated ratings, and growth plans.
  3. Interview screen template: Role outcomes, must‑have competencies, structured behavioral questions, scoring rubric, decision log, and candidate experience notes.

Adapt templates for jurisdictional needs—e.g., US I‑9 timing and E‑Verify steps or UK right‑to‑work checks—and note any union or site‑specific policies.

FAQ

Quick answers to common questions we hear from SMB leaders. Each links to an official source so you can verify and go deeper.

Do small employers need OSHA logs?

Often, yes—unless you fall into a partially exempt industry or have 10 or fewer employees for the entire year. Start by checking OSHA’s recordkeeping overview to confirm if your NAICS code is exempt and what forms you must keep: https://www.osha.gov/recordkeeping.

Even when exempt from logs, you must still report severe incidents promptly.

Can we verify I‑9 remotely?

In certain cases. Employers enrolled in E‑Verify and in good standing may use the DHS “alternative procedure” for eligible hires, which includes retaining copies of documents and conducting a live video interaction.

Always confirm current requirements and steps on USCIS I‑9 Central: https://www.uscis.gov/i-9-central. If you’re not in E‑Verify, follow standard in‑person document inspection rules.

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