Which Employers Are Subject To The PWFA?

The PWFA applies to:

• Private-sector employers with 15 or more employees
• State and local government employers with 15 or more employees
• The federal government as an employer
• Unions
• Employment agencies

As under Title VII and the ADA, to be covered employers must have 15 or more employees on 20 or more calendar work weeks in the current or preceding year.

Example: An employer with 25 employees throughout 2024 is subject to the PWFA requirements throughout 2024. This employer will be subject to the requirements of the PWFA during 2026 as well, regardless of the number of employees. For an HR Generalist, tracking these headcount thresholds is a vital part of human resources compliance.

The PWFA applies to U.S. employers' overseas operations, as well as to foreign corporations controlled by an American employer, but only covers employees who are citizens of the United States. A labor union is prohibited from discriminating not only in its capacity as an employer, but also in its capacity as a bargaining representative for its members, or as a referral agency or hiring hall. Similarly, an employment agency cannot discriminate as an employer and as an agency.

Example: Without discussing the situation with her, an employment agency decides not to refer a pregnant worker to certain jobs that the agency views as too physical. The agency has unlawfully discriminated against the worker and violated the PWFA and labor law.

It is important to understand which people and entities are considered the “employer“ because the regulatory definition is broad enough to include managers and supervisors of the employer. Definition Of Employer The definition of employer includes any person engaged in industry affecting commerce, including any agent of such person. Agents can include:

• Managers
• Supervisors
• Team leads or any other person who acts for the employer
• Employment agencies
• Executive search firms
• Businesses conducting background checks on behalf of the employer, including I-9 and legal status verifications.
• Third-Party Administrators. All employee data handled by these agents must remain HIPAA compliant where medical information is involved.