Are small employers exempt from ERISA requirements?

No. ERISA applies to private-sector employers of all sizes, even those with just one or two employees.
There is no size-based exemption for small businesses.

If a small business offers a group health plan, HRA, FSA, or other welfare benefit plan, they are subject to ERISA rules—including the requirement to:

  • Maintain a written plan document

  • Provide a Summary Plan Description (SPD)

  • Follow ERISA rules around claims, appeals, and disclosures

đźš« Who Is Exempt from ERISA?

It’s not about the number of employees—it’s about the type of employer or plan:

  • Government employers (federal, state, or local)

  • Churches and religious organizations

  • Plans covering only owners/partners and no common-law employees

If your business has even one W-2 employee, ERISA likely applies.

🧠 Tip:

Even the smallest employer offering a benefit plan needs to comply. Using a wrap document can help meet ERISA documentation requirements in a simple, consolidated format.

Employer Responsibilities