Once you hire employees, you take on a significant range of legal obligations — federal, state, and sometimes local. Many small business owners are unaware of requirements until a complaint is filed. This area covers wages, working conditions, anti-discrimination rules, termination, and record-keeping. Requirements vary significantly by state and business size.
It depends on your headcount. Businesses with 15 or more employees must comply with Title VII (race, color, religion, sex, national origin), the ADA (disability), and the Pregnancy Discrimination Act. Businesses with 20 or more employees must comply with the ADEA (age discrimination for workers 40+). Businesses with any employees must comply with the Equal Pay Act. Many states have broader protections that apply to smaller businesses. The EEOC at eeoc.gov/employers/small-business has a clear breakdown.
In most US states, employment is "at-will" — meaning either party can end the relationship at any time for any lawful reason, or no reason. However, you cannot terminate for an unlawful reason — protected characteristics, whistleblowing, union activity, exercising legal rights. The risk is not usually wrongful termination itself but being unable to demonstrate that the termination was not for an unlawful reason. Document performance issues in writing before terminating. Consult an employment attorney for any termination you are uncertain about.
The DOL requires employers to maintain payroll records for at least 3 years and time records for 2 years. I-9 employment eligibility forms must be kept for 3 years after hire or 1 year after termination, whichever is later. The EEOC requires employers with 15+ employees to keep personnel records for 1 year. Tax records should be kept for at least 4 years. State requirements may be more stringent. The DOL's record-keeping guide is at dol.gov/agencies/whd/record-keeping.