Short answer: No. ERISA applies to private employers of any size that sponsor health or welfare benefit plans, even if only one employee is covered.
ERISA does not include a small-business exemption. Private-sector employers that establish or maintain group health or welfare benefit plans are generally subject to ERISA regardless of the number of employees.
If a private employer offers a group health plan, health reimbursement arrangement (HRA), health flexible spending account (FSA), or other ERISA-covered welfare benefit to even one common-law employee, ERISA typically applies. Employer size may affect certain reporting obligations, such as whether Form 5500 must be filed, but it does not determine whether ERISA applies.
ERISA exemptions are based on the type of employer or plan, not employer size. Governmental employers, including federal, state, and local government entities, are generally exempt. Church plans and plans sponsored by religious organizations are also generally exempt unless they elect ERISA coverage. In addition, plans that cover only owners or partners and no common-law employees are not subject to ERISA.
For small employers with at least one W-2 employee, ERISA requirements such as maintaining a written plan document, providing a Summary Plan Description (SPD), and following applicable disclosure and claims rules generally apply.
ERISA applicability and enforcement are overseen by the U.S. Department of Labor.
Sources
-
U.S. Department of Labor, ERISA: Health Plans
https://www.dol.gov/general/topic/health-plans -
Employee Retirement Income Security Act of 1974 (ERISA)
Content history
Originally published: March 27, 2025
Last reviewed: June 16, 2026