StartEaseEmployees for labor-law size tests: what to count and why
Some state paid sick leave laws change with the size of the company. This guide explains what the box means, what to count, who enters it, and when a payroll is blocked.
What the box is
In Company details, under Business identity, the box Employees for labor-law size tests holds one number: how many people your company employs. It is used for state laws that depend on company size. It has nothing to do with the plan you pay for or the number of people on your payroll today.
Why size matters
Some states change their paid sick leave rules by company size. The law may not apply below a headcount, and the yearly limit on hours can be lower for small employers and higher for large ones. The rules table notes these examples:
| State | What the rules table says |
|---|---|
| Arizona | 24 hours a year for employers with fewer than 15 employees. |
| District of Columbia | 1 hour per 37 for 100+ employees, per 43 for 25–99, per 87 under 25. |
| Maine | Earned paid leave for any reason, employers with more than 10 employees. |
| Maryland | Paid for employers with 15 or more employees. |
| Michigan | 40 hours for employers with fewer than 11 employees. |
| Nebraska | 24 hours for employers with fewer than 11 employees. |
| New York | Exempt floor is $1,275 a week in New York City, Long Island and Westchester. Sick leave: 40 hours for 5–99 employees, 56 for 100+. |
These notes are a summary for orientation. The law decides what counts and how, so the compliance team checks each state's official guidance.
What to count
- Everyone the company employs in all states, including part-time employees.
- Do not take the number from the list of people in StartEase. The law may count people who are not in this system, or use an average over a past period.
- Check each state's counting period (the current count or the prior-year average) with your compliance team.
Who enters it
You or your payroll team. Enter the number once, and update it when your headcount changes in a way that moves you across a state's threshold. The page shows, for reference, how many people are on the active roster in StartEase.
When it blocks a payroll
If a state used in a payroll has a size rule and this box is blank, the payroll cannot be approved. The message is Company size (check 14 of the 14 payroll checks): see Why can't I approve my payroll?. Enter the number and the block clears.
A size rule exists only after the super admin has entered that state's thresholds from the state's official guidance. They are blank until entered. In a state with no sick leave law, such as Texas and Wyoming, no sick leave is accrued and size does not matter.