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United States of America Employment Guide

Your quick guide on talent and labor compliance norms in USA


Washington D.C


USD (United States Dollar)



Payroll Frequency

Biweekly and Monthly

GDP per Capita


Employer Tax

Varies based on States

Talent Overview

The United States of America is known to be one of the most developed countries and is considered to be a high-income nation. The main economic contributions of the country are the industry and service sector. The country holds the highest economy in the world with 24,796 (in billion U.S. dollars) GDP per capita. Most businesses are into expansion in the US for better economic growth.

Major economic hubs:

Washington, D.C., New York City, California

Skills in demand:

Software Engineer, IT Engineer, Data Analyst, Data Scientist


Local Universities

The top local universities in USA are as follows:

Uni 1 1

Massachusetts Institute of Technology (MIT)


Local: 1

World : 1

Uni 2 1

Harvard University


Local: 2

World : 2

Uni 3 1

Stanford University


Local: 3

World : 3

Uni 4 1

Cornell University


Local: 4

World : 4

Uni 5 1

University of California, Berkeley


Local: 5

World : 5

Salary Data

The table below mentions the average salary data in USA

Job Title Average Monthly Salary (USD)
Software Developer 10,106 USD
Marketing Manager 8,878 USD
UX Designer 8,847 USD
Technical Product Engineer 6,501 USD
Sales Executive 6,441 USD
Data Analyst 5,761 USD
Accountant 5,561 USD
Talent Source 6 1

Talent Sourcing Tips

Top Local Job Boards:

CareerBuilder, Indeed, LinkedIn

Number of LinkedIn users:


Top Recruitment Agencies:

Korn Ferry International, N2Growth, Heidrick & Struggles

Employing in The United States

Knowing the labor laws in the United States is the first step to employing local employees in the country. Additionally, the employers must have information about bonuses, leaves, and allowances. Below are some areas that employers must delve into before taking in employees.

Employee Contract:

Employment contracts in the United States of America must be written, and the language should be English. The employer must mention all the descriptions, job roles, bonuses, allowances, and leaves in the contract.

Public and Provincial Holidays:

Date Holiday Remark
1 Jan New Year National holiday
15 Jan Birth day of Martin Luther King Jr National holiday
19 Feb Presidents Day National holiday
20 Feb Washington’s birthday Regional holiday
27 May Memorial day National holiday
19 Jun Juneteenth day Regional holiday
4 Jul Independence day National holiday
2 Sep Labor day National holiday
14 Oct Columbus Day National holiday
11 Nov Veteran’s day Regional holiday
28 Nov Thanksgiving day National holiday
25 Dec Christmas day National holiday

For the Holiday List based on provinces, please refer here.

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 10 to 14 days No
Maternity Leave 12 weeks (Unpaid and Job Protected) Yes



Payroll 1

Payroll Cycle

The payroll cycle in the USA is Biweekly or Monthly, depending on the state-federal legal rules of the employer.

Payroll 2

Minimum Wage

The federal minimum wage in the USA is $7.25 per hour. However, all states have the liberty to increase the minimum wage as per the cost of living. The minimum wages for all USA states are as follows:

Payroll 3

Overtime Pay

According to the Fair Labor Standards Act (FLSC), overtime pay is at least one and one-half times the employee’s normal rate of pay after 40 hours of work in a workweek.


13th Month Pay:

There is no legal status for 13th Month bonus, however, the employer may provide the employees with a Christmas bonus and New Year Bonus.

Employee Benefits:

  • Unemployment Insurance
  • Federal Insurance Contributions Act
  • Family and Medical Leave Act
  • Health benefits
  • Six jurisdictions (California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island) operate state disability insurance (SDI) programs.


Employer Payroll Tax:

Click here

Employee Payroll Tax:

Click here

Employee Income Tax:

Click here


There is no VAT in the United States.

Offboarding & Termination

The USA follows “Work at will,” meaning there is no set length of an employment relationship. Either the employer or the employee can put an end to it at any particular time, with or without notice, and also, with or without cause. If there is an employer policy, employment contract, or union agreement, the employment relationship shall be in accordance with those terms and conditions of that agreement.

As the employment is done “at will,” there is no notice period. Although if the employer mentions any specific notice period, the employee has to serve it.

There is no statutory law for severance pay in the USA.

Visa and Immigration

In the US, an employee needs a visa as an immigrant worker. The employer will be the sponsor if the employee already has the job offer. However, an employee needs to have an approved Labor Certificate from the U.S Department of Labor (DOL). The visa preferences are further mentioned below;

Visa And Immigration 1
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Minimum Wage

Province 2024
Alabama $7.25
Alaska $10.19
Arizona $13.85
Arkansas $11
California $15.50
Colorado $13.65
Connecticut $15.00
Delaware $11.75
District of Columbia $17.50
Florida $13.00
Georgia $7.25
Hawaii $12.00
Idaho $7.25
Illinois $14.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine $13.80
Maryland $15.00
Massachusetts $15.00
Michigan* $10.10
Minnesota $10.59
Mississippi $7.25
Missouri $12.00
Montana $9.95
Nebraska $10.50
Nevada $12.00
New Hampshire $7.25
New Jersey $14.13
New Mexico $12.00
New York $14.20
North Carolina $7.25
North Dakota $7.25
Ohio $10.10
Oklahoma $7.25
Oregon $14.20
Pennsylvania $7.25
Rhode Island $13.00
South Carolina $7.25
South Dakota $10.80
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont $13.18
Virginia $12.00
Washington $16.28
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25

Overtime Pay

Visa & Immigration

In the US, an employee needs a visa as an immigrant worker. The employer will be the sponsor if the employee already has the job offer. However, an employee needs to have an approved Labor Certificate from the U.S Department of Labor (DOL). The visa preferences are further mentioned below;

Preference Descriptions Labor Certificate
EB1 Reserved particularly for individuals of extraordinary ability in the science, arts, education, business, or athletics, outstanding professors or researchers, multinational executives and managers. No
EB2 Reserved for individuals from the professions holding advanced degrees or those with exceptional ability in the arts, sciences, or business. Yes
EB3 Reserved especially for professionals, skilled workers, and other workers. Yes
EB4 Reserved for “special immigrants,” including certain religious workers, U.S. foreign service posts employees, retired employees of international organizations, noncitizen minors who are wards of courts in the United States, and other classes of noncitizens. No
EB5 Reserved for business investors who invest $1.8 million or $900,000 (in case the investment is done in a targeted employment area) in a new commercial enterprise that employs at least 10 full-time U.S. workers. No