Definition depends on the context in which the term is used, typically a particular statute or regulation. Generally, small employers are those that employ less than 50 people, although at least one recent health reform proposal put the limit at 100 employees. The distinction is important since the designation of “small employer” may exempt a business from having to comply with certain requirements, such as federal legislation dealing with the employment relationship (the Family Medical Leave Act). Some states have enacted Small Employer Insurance Reform to ease the hardship for the small employer in the health care market.