Employing in the United States
The federal minimum wage in the United States is $7.25 per hour for employees that are covered by the Fair Labor Standards Act, although many states have a higher minimum wage which applies.
Employees incur both federal and state level tax. Federal Income Tax operates on a sliding scale with different brackets for single or married employees. State Income Tax varies with Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming not requiring State Income Tax at all.
Whilst there is no national ‘state pension’ provision in the same way as other countries, employers can offer a private pension as part of their employment contract.
Many individuals instead contribute to other retirement accounts such as 401ks or IRAs.
Standard working hours in the United States are 8 hours per day, equating to 40 hours per work. The standard working week is Monday to Friday, although some industries require their employees to work weekends.
There is no federal law for providing any paid leave for employees, including on National Holidays. However, most employers offer some form of paid leave often through a Paid Time Off (PTO) system.
The Family and Medical Leave Act (FMLA) states that eligible workers are entitled to leave for certain family and medical reasons, however this is unpaid
Some states have passed laws which require employers to offer paid sick leave and leave taken for some family-related reasons.
Employment rights are fairly straightforward in the United States, but we suggest you speak to one of our Employment Law Advisors before taking any action. This will ensure compliance is upheld throughout the process. An employee can be entitled to a substantial sum if not dealt with correctly.
