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Closely Related Small Businesses May Be Integrated to Secure ADA Coverage

May 10, 2022

As you may or may not know, companies with fewer than 15 employees are not covered by anti-discrimination laws, including the Americans with Disabilities Act (“ADA”). However, a recent court decision established that “integrated enterprises” (i.e., closely related small businesses) may be combined to secure ADA coverage.


Under what is known as the “integrated enterprise doctrine,” an employee can take legal action if they can show that their employer is “so interconnected with another employer that the two form an integrated enterprise” and, the integrated enterprise has at least the threshold number of employees to qualify for coverage from anti-discrimination law (i.e., 15 under the ADA). In making the determination as to whether two businesses can be considered one for ADA coverage, the court will whether the businesses have the same management team and whether the businesses have the same ownership, among other factors.


In a recent case out of California, an employee alleged that her employer, a law firm, was part of an integrated enterprise with another law firm. Evidence to support her claim included: a shared website, shared toll-free number, employees of both firms used the same email template footer which included the names of both firms, and even a shared IRS taxpayer ID number. Moreover, the same two attorneys own both firms. This was enough for the Court to hold that a jury could find the firms were an integrated enterprise and therefore, could be held liable for violations of the ADA.

This decision is important for owners of multiple small businesses as it is now possible for them to be combined for purposes of triggering coverage under federal anti-discrimination laws. Owners should note how closely related their businesses are and how this could impact their potential vulnerability to anti-discrimination lawsuits.


For more information on the ADA, or any other labor or employment law matter, please contact the attorneys at The Royal Law Firm LLP; (413) 586-2288. We know business matters! 

Massachusetts’ Superior Court Judge Rules Recording in Workplace Admissible

February 19, 2025
The Massachusetts Superior Court found that Massachusetts’ wiretap statue does not bar employers from using allegedly illegally obtained recordings in civil proceedings. In a recent case, an employee claimed she was forced to resign. Plaintiff’s coworker recorded an argument between the Plaintiff and her supervisor without her consent and shared it with supervisors. The employee then sued for discrimination and retaliation, along with two counts for violation of the wiretap statute. Massachusetts is a two-party consent state but, in this case, it was found that the consent of only one party was needed because nothing in the Wiretap Statute bars the use of an allegedly illegally obtained communication in a civil proceeding. The court found that the provisions about the use of illegally obtained communications in evidence are limited to criminal trials. However, depending on the court, results may differ, as this recording was central to proving and/or disproving the Plaintiff’s claim, and as such, the recording was indispensable as a piece of evidence. Issues with unauthorized recordings have been arising all the time in civil proceedings because recording devices are everywhere, whether they be a cell phone, laptop or other recording device. This ruling is good for employers, as if there is an otherwise inadmissible recording that is made that disproves an employee’s claims, it can be admissible as evidence if meets the same scenario above. However, employers must be careful to use these recordings as they may be inadmissible and may not show the same thing that the employer believes in the court’s eyes. This being said, it is prudent to consult an attorney before utilizing a recording for any employment action or in legal action to avoid unwanted consequences. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

After the DEI Executive Order

February 14, 2025
What Are the Compliance Requirements for Private Employers?
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