Country Hiring Guide: United States
Everything you need to know to hire in the United States
Key Facts to Hire in the United States
Washington, D.C.
Capital
United States Dollar (USD)
Currency
English (de facto)
National language
334,233,854
Total population
2.10%
GDP growth
24.08%
Total country’s GDP world share
Typically biweekly or semi-monthly
Payroll frequency
40 hours per week
Total working hours
Overview in the United States
The United States, a federal republic of 50 states, has evolved from 13 British colonies to become a global superpower. Spanning a continent with diverse geography and abundant natural resources, it has leveraged these assets to build the world’s largest economy. The U.S. boasts a highly diversified economic landscape, encompassing advanced manufacturing, technology, finance, and services. This economic prowess is fuelled by a multicultural workforce, reflecting the nation’s history of immigration.
The American labor market is characterized by high skill levels, innovation, and entrepreneurship, with a strong emphasis on the service sector and knowledge economy. Workplace culture typically values individualism, direct communication, and results-oriented approaches. However, the country faces ongoing challenges, including income inequality, political polarization, and the need to adapt to rapidly changing global economic conditions.
The U.S. political system, a presidential democracy with a strong tradition of checks and balances, continues to shape both domestic and international policy. Despite an aging population trend, the U.S. maintains a demographic advantage through immigration, contributing to a dynamic and diverse society. This blend of economic strength, cultural diversity, and political influence positions the United States as a key player in the global marketplace, offering both opportunities and challenges for businesses and workers alike.
Employer of Record in the United States
Hightekers is a global Employer of Record service that helps you hire employees in the United States without the hassle of setting up a local entity. We handle all the legal and compliance matters as the official employer for your United States team, allowing you to concentrate on growing your business.
How does it work?
When you hire employees in the United States through Hightekers, we take on the role of the legal employer for your staff. This allows us to manage all employer responsibilities while you continue to oversee the daily operations and management of your employees.
As the company, you oversee direct relationships with employees, assigning tasks and managing their performance. Hightekers handles local payroll, contracts, HR, benefits, and compliance matters.
Responsibilities of an Employer of Record
As an Employer of Record in the United States, Hightekers is responsible for creating and managing employment contracts, running monthly payroll, providing local and global benefits, ensuring 100% local compliance, and offering local HR support. Our comprehensive services cover all aspects of legal employment, allowing you to focus on your core business operations.
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for the day-to-day management of the employee, including work assignments, performance management, and training and development. This arrangement allows you to maintain direct control over your team’s productivity and growth while we handle the administrative and legal aspects of employment.
Taxes in the United States
Income Tax
- Progressive federal tax system with rates ranging from 10% to 37% (2024)
- State income taxes vary by location (0-13.3%)
- Employers must withhold federal, state, and local taxes
- Annual filing deadline: April 15th
- Multiple filing statuses: Single, Married Filing Jointly, Head of Household
Corporate Income Tax
- Federal flat rate of 21%
- State corporate taxes range from 0-11.5%
- Deductible expenses include:
- Operating costs
- Employee benefits
- Research and development
- Depreciation of assets
Social Security Contributions
- Social Security tax: 6.2% each from employer and employee (12.4% total)
- Medicare tax: 1.45% each (2.9% total)
- Additional Medicare tax of 0.9% for high earners
- Social Security wage base limit: $168,600 (2024)
Sales Tax (No Federal VAT/GST)
- No federal sales tax
- State sales taxes range from 0-7.25%
- Local jurisdictions may add additional sales tax
- Common exemptions: groceries, prescription medications
Tax Incentives
- R&D tax credits
- Opportunity Zones for real estate investment
- New Markets Tax Credit
- Work Opportunity Tax Credit
- Energy-efficient building deductions
Other Notable Taxes
- Property taxes (varies by locality)
- Estate tax (40% rate, $13.61M exemption in 2024)
- Capital gains tax (0%, 15%, or 20% based on income)
- Self-employment tax (15.3% total)
- Excise taxes on specific goods (fuel, tobacco, alcohol)
Tax rates and thresholds are subject to annual adjustments and legislative changes. Taxpayers should consult with tax professionals for specific guidance.
Hire locally in the United States by partnering with Hightekers
Leave in the United States
The United States has a unique leave system that differs significantly from many other developed nations, as many leave benefits are determined by individual employers rather than federal law.
Mandatory Leave Types
Federal Family and Medical Leave (FMLA) :
- 12 weeks of unpaid leave annually
- Applies to companies with 50+ employees
- For serious health conditions, childbirth, or family care
- Employee must have worked 1,250 hours in previous year
Military Leave :
- Protected leave for service members
- Duration based on service requirements
- Job protection guaranteed upon return
Common Discretionary Leave Types
Paid Time Off (PTO) :
- Average: 10-20 days annually
- Often increases with years of service
- May combine vacation and sick leave
- Typically accrued monthly
Sick Leave :
- Average: 7-10 days annually
- For personal illness or medical appointments
- Some states mandate paid sick leave
Public Holidays :
- 10 federal holidays annually
- Private employers not required to observe
- Common holidays include New Year’s, Independence Day, Thanksgiving
Bereavement Leave :
- Typically 3-5 days
- For death of immediate family member
- Additional time may be granted for travel
Parental Leave :
- No federal paid leave requirement
- Some states mandate paid leave (e.g., California: 8 weeks)
- Company policies vary widely (average: 6-12 weeks)
Jury Duty Leave
- Required by law
- Duration as needed for court service
- Some states require paid leave
The US is unique among developed nations in not mandating paid vacation, sick leave, or parental leave at the federal level. Benefits vary significantly by employer, industry, and state regulations. Always verify specific policies with your employer or state labor department.
Benefits in the United States
The United States offers a diverse range of employee benefits, often influenced by industry standards and company policies. While there are some federal mandates, many benefits are optional and can vary significantly between employers.
Core Benefits:
- Health Insurance: Employers with 50 or more employees are generally required to offer affordable health insurance coverage.
- Retirement Plans: Many employers offer retirement plans such as 401(k)s or pension plans.
- Paid Time Off: Employees are typically entitled to paid vacation, sick leave, and holidays.
- Parental Leave: The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid leave for certain family-related reasons.
- Disability Insurance: Some employers offer disability insurance, including short-term disability and long-term disability.
Additional Benefits:
- Life Insurance: Employers may offer group life insurance coverage.
- Flexible Spending Accounts (FSAs): FSAs allow employees to set aside pre-tax money for eligible medical or dependent care expenses.
- Health Savings Accounts (HSAs): HSAs are tax-advantaged savings accounts used to pay medical expenses.
- Employee Assistance Programs (EAPs): EAPs provide confidential counseling and support services.
- Professional Development: Many companies offer tuition reimbursement or other education benefits.
Note: The specific benefits offered can vary widely depending on factors such as company size, industry, and employee position. Employers often tailor their benefits packages to attract and retain top talent.
Workers Rights in the United States
The United States provides various protections for workers through federal and state laws. The Fair Labor Standards Act governs minimum wage, overtime pay, and child labor. The Family and Medical Leave Act ensures job-protected leave for certain family and medical reasons. The Occupational Safety and Health Act sets standards for workplace safety. Anti-discrimination laws, including Title VII of the Civil Rights Act, prohibit workplace discrimination based on protected characteristics.
Employment in the U.S. is generally “at-will,” allowing termination without cause, with exceptions for protected reasons. The National Labor Relations Act guarantees the right to form unions and engage in collective bargaining. Social Security and Medicare provide retirement and health benefits. Workers’ compensation programs offer benefits for work-related injuries. Dispute resolution often involves internal grievance procedures, mediation, or litigation.
Recent developments include efforts to raise the federal minimum wage and expand paid family leave. Some states have implemented stricter worker protections, such as California’s AB5 law addressing gig workers. The COVID-19 pandemic has led to temporary expansions of unemployment benefits and discussions about remote work rights. Cultural considerations include the emphasis on work-life balance and growing focus on diversity and inclusion in the workplace.
Agreements in the United States
In the United States, employment agreements vary widely depending on factors such as job type, industry, and state laws. Common types include at-will agreements, which allow either party to terminate employment at any time without cause, and fixed-term contracts for specific durations. Key terms typically cover job description, compensation, benefits, work schedule, and confidentiality clauses. Many agreements also include non-compete and non-solicitation provisions, though their enforceability varies by state.
Employment agreements must comply with federal laws such as the Fair Labor Standards Act, Americans with Disabilities Act, and state-specific regulations. Key elements often include anti-discrimination clauses, workplace safety provisions, and adherence to minimum wage and overtime laws. Dispute resolution mechanisms may involve internal grievance procedures, arbitration clauses, or litigation, depending on the agreement and applicable laws. Confidentiality clauses protect trade secrets and proprietary information, while non-compete clauses, where enforceable, restrict an employee’s ability to work for competitors for a specified period after leaving the company.
Amendments to employment agreements typically require mutual consent and should be documented in writing. Termination procedures often outline notice periods, severance terms, and conditions for both voluntary resignation and involuntary termination. It’s crucial to note that employment law in the U.S. can vary significantly by state, with some states like California having more employee-friendly regulations. Recent trends include increased attention to remote work provisions, expanded leave policies, and greater focus on equity and inclusion clauses. Employers and employees should consult with legal professionals to ensure agreements are tailored to their specific circumstances and compliant with all applicable laws.
Hire locally in the United States by partnering with Hightekers
Remote Work in the United States
In the United States, remote work is governed by a patchwork of federal, state, and local laws. The Fair Labor Standards Act (FLSA) applies to remote workers, mandating minimum wage and overtime pay. The Occupational Safety and Health Act (OSHA) requires employers to provide safe working conditions, even for home offices. The Americans with Disabilities Act (ADA) may require remote work as a reasonable accommodation. Employers must also comply with state-specific regulations on work hours, breaks, and worker classification.
Employers are responsible for providing necessary equipment and ensuring data security for remote workers. This often involves implementing Virtual Private Networks (VPNs) and secure cloud-based systems. The Health Insurance Portability and Accountability Act (HIPAA) and other data protection laws apply to remote work scenarios. Flexible work arrangements, including hybrid models, are becoming increasingly common. Employers should clearly define expectations in remote work policies or agreements, covering areas such as work hours, communication protocols, and performance metrics.
Tax considerations for remote work can be complex, especially for employees working across state lines. Some states have implemented “convenience of the employer” rules affecting income tax obligations. Best practices for remote work include regular check-ins, clear communication channels, and fostering a strong company culture despite physical distance. Cultural considerations in the U.S. include a growing emphasis on work-life balance and the need for social interaction. As remote work continues to evolve, employers should stay informed about changing regulations and adapt their policies accordingly to ensure compliance and maximize productivity.
Working Hours in the United States
In the United States, working hour regulations are primarily governed by the Fair Labor Standards Act (FLSA). While there is no federally mandated standard workweek, 40 hours is generally considered full-time. The FLSA does not limit the number of hours employees aged 16 and older can work in a week. Overtime pay of at least 1.5 times the regular rate is required for non-exempt employees who work more than 40 hours in a workweek.
Different types of shifts, including day, night, and rotating shifts, are permissible under federal law. The FLSA does not require meal or rest breaks, though many states have their own laws mandating breaks. When breaks are offered, short breaks (5-20 minutes) must be paid, while longer meal periods (30 minutes or more) can be unpaid if the employee is completely relieved of duties. Night and weekend work are not specifically regulated at the federal level, but some states have additional requirements for night work.
The Occupational Safety and Health Administration (OSHA) sets and enforces health and safety standards in the workplace. These standards apply to all work environments, including non-standard hours. Employers must provide a safe working environment, which includes considerations for adequate lighting, proper ventilation, and measures to prevent fatigue-related accidents for night or long-shift workers. Some industries, such as transportation and healthcare, have specific regulations limiting consecutive work hours to ensure safety. State laws may provide additional protections or requirements beyond federal standards, so employers must comply with both federal and applicable state regulations.
Salary in the United States
Salaries in the United States are influenced by factors such as location, industry, job role, experience, and education. Resources like the Bureau of Labor Statistics, Glassdoor, and PayScale provide salary data. The federal minimum wage is $7.25 per hour, though many states and cities have higher rates. Employee compensation often includes base salary, bonuses, and benefits like health insurance and retirement plans.
Payroll practices typically involve biweekly or semi-monthly payments, with employers required to withhold federal and state income taxes, Social Security, and Medicare contributions. The Fair Labor Standards Act (FLSA) governs overtime pay, requiring non-exempt employees to receive 1.5 times their regular rate for hours worked over 40 in a workweek. The Occupational Safety and Health Administration (OSHA) sets and enforces workplace safety standards.
Tax considerations include federal income tax brackets, state income taxes (which vary by state), and payroll taxes. Special considerations in the U.S. job market include the prevalence of at-will employment, the growing gig economy, and increasing focus on pay equity. Some states have enacted salary history bans and pay transparency laws. The COVID-19 pandemic has also influenced compensation practices, with many companies offering remote work options and adjusting salaries based on employee location.
Termination in the United States
Legal Basis:
The at-will employment doctrine is predominant in most U.S. states, allowing either employer or employee to terminate the employment relationship at any time, for any reason, without notice. However, exceptions exist for terminations based on protected characteristics (such as race or gender), breach of contract, or violations of public policy.
Notice Periods:
Federal law does not require notice periods for at-will employees. However, the WARN Act mandates 60 days’ notice for mass layoffs affecting 100 or more employees. Some employment contracts may specify notice periods, which must be adhered to by both parties.
Severance Pay:
Severance pay is not legally required unless specified in an employment contract or company policy. When offered, it typically ranges from 1-2 weeks’ pay per year of service. Employers often provide severance in exchange for the employee signing a release of claims against the company.
Termination Procedures:
Standard termination procedures include documenting reasons for termination, conducting an exit interview, providing the final paycheck (timing varies by state law), offering COBRA health insurance continuation, and ensuring the return of company property.
Employers Terminating Employees:
When terminating employees, employers should ensure a non-discriminatory basis for termination, follow any established progressive discipline policy, provide a clear explanation for the termination, and consider offering outplacement services to assist the employee in finding new employment.
Employees Resigning:
Employees choosing to resign typically provide written notice, with two weeks being the standard (though not legally required). They should assist in the transition of duties, return all company property, and may request a letter of recommendation if appropriate.
Note: Employment laws can vary significantly by state. Employers and employees should consult local regulations and seek legal advice for specific situations.
Hire locally in the United States by partnering with Hightekers
Freelancing in the United States
Freelancing in the United States is governed by a complex legal framework that distinguishes between employees and independent contractors. The Fair Labor Standards Act (FLSA) and Internal Revenue Service (IRS) guidelines are key in determining worker classification. Independent contractors typically have greater control over their work methods and schedule, while employees are subject to more employer control. This distinction impacts rights, benefits, and tax obligations.
Freelancers, as independent contractors, are responsible for their own taxes, insurance, and retirement planning. They don’t receive employee benefits like health insurance or paid time off but enjoy more flexibility and potential tax deductions. Clear, comprehensive contracts are crucial in freelance arrangements, outlining scope, payment terms, and intellectual property rights. The gig economy has expanded freelancing across various industries, with technology and creative fields seeing significant growth.
Misclassification of workers is a major concern, with potential legal and financial consequences for employers. Recent legal developments, such as California’s AB5 law, have aimed to provide more protections for gig workers. Freelancers must carefully manage their intellectual property rights and understand their tax obligations, including quarterly estimated tax payments. As the freelance economy continues to grow, staying informed about evolving regulations and best practices is essential for both freelancers and those hiring them.
Health and Safety in the United States
The United States has a comprehensive legal framework for occupational health and safety, primarily governed by the Occupational Safety and Health Act of 1970. This act established the Occupational Safety and Health Administration (OSHA), which develops and enforces workplace safety standards. Employers are obligated to provide a safe work environment, conduct hazard assessments, provide necessary protective equipment, and train employees on safety procedures. Employees have the right to a safe workplace, access to safety information, and protection from retaliation for reporting safety concerns. OSHA conducts workplace inspections and can issue citations and penalties for violations. Employers are required to report severe injuries and fatalities to OSHA within specific timeframes.
In addition to federal regulations, many states have their own OSHA-approved plans that meet or exceed federal standards. OSHA provides supplementary guidelines for specific industries and hazards, such as construction, maritime, and healthcare. The agency also offers compliance assistance programs and partnerships to help businesses improve their safety practices. Accident investigation is a crucial component of the regulatory framework, with OSHA conducting thorough investigations of severe incidents to prevent future occurrences. While the primary focus is on prevention, the system also includes provisions for workers’ compensation in case of work-related injuries or illnesses. Overall, the U.S. occupational health and safety regulations aim to create a culture of safety in the workplace through a combination of legal requirements, enforcement, education, and cooperation between employers and employees.
Dispute Resolution in the United States
Legal Frameworks with Respect to Labor Laws:
The U.S. has federal laws like the National Labor Relations Act, Fair Labor Standards Act, and state-specific labor laws. These provide the foundation for employee rights and dispute resolution mechanisms.
Dispute Resolution Processes:
Processes include internal grievance procedures, mediation, arbitration, and litigation. The Equal Employment Opportunity Commission (EEOC) handles discrimination complaints. Some disputes are resolved through union-management negotiations.
Enforcement Mechanisms:
Federal agencies like the Department of Labor and EEOC enforce labor laws. Courts can issue injunctions, award damages, and mandate compliance. State labor departments also play a role in enforcement.
Challenges:
Challenges include lengthy litigation processes, high costs, potential bias in arbitration, and varying state laws. Access to legal representation can be a barrier for some employees.
Whistleblower Protections:
The Whistleblower Protection Act and Sarbanes-Oxley Act provide protections for federal employees and corporate whistleblowers. OSHA enforces whistleblower provisions in various workplace safety laws.
International Influence:
U.S. labor dispute resolution practices influence global standards. The country participates in International Labour Organization conventions and incorporates some international labor standards into trade agreements.
Compliance Monitoring:
The Department of Labor conducts audits and investigations. Some industries have self-regulatory bodies. Companies often implement internal compliance programs to monitor adherence to labor laws.
Cultural Considerations in the United States
The United States workplace culture is characterized by individualism, egalitarianism, and a strong focus on productivity and results. Understanding these cultural nuances is crucial for effective business interactions.
Communication Styles
Direct and explicit communication is valued in U.S. business settings. Americans generally prefer straightforward language and getting to the point quickly. Feedback is often given directly, though it may be softened with positive comments.
Non-Verbal Communication
Maintaining eye contact is important and conveys honesty and attentiveness. Personal space is valued, with arm’s length being a common comfortable distance. Handshakes are the standard greeting in business settings.
Negotiation Style
U.S. negotiators tend to be assertive and goal-oriented. They often prefer a “win-win” approach but can be competitive. Decision-making is usually based on facts and figures rather than personal relationships.
Employee Culture and Structure
Hierarchies exist but are often less rigid than in other cultures. Employees are generally encouraged to take initiative and voice their opinions. Teamwork is valued, but individual achievements are also recognized and rewarded.
Public Holidays and Work Schedules
The standard work week is Monday to Friday, typically 9 am to 5 pm. Major national holidays include New Year’s Day, Independence Day (July 4th), Thanksgiving (fourth Thursday in November), and Christmas Day. Paid time off varies by company but is generally less than in many European countries.
The U.S. workplace is increasingly diverse, and there’s growing awareness of the need for cultural sensitivity. Many companies offer diversity training and have policies to promote inclusion. It’s also worth noting that workplace cultures can vary significantly between different regions of the U.S., industries, and individual companies.
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