Expand your global workforce in USA
Your guide to the employment landscape, working customs and local labor laws in United States of America
Capital
Washington D.C
Currency
USD (United States Dollar)
Languages
English
GDP per Capita
$83,060
Employer Tax
Varies based on States
Payroll Frequency
Biweekly and Monthly
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
United States of America
Top local universities in USA
Massachusetts Institute of Technology (MIT)
RANKING
Local: 1
World : 1
Harvard University
RANKING
Local: 2
World : 2
Stanford University
RANKING
Local: 3
World : 3
Cornell University
RANKING
Local: 4
World : 4
University of California, Berkeley
RANKING
Local: 5
World : 5
Top Local Job Boards:
CareerBuilder, Indeed, LinkedIn
Number of LinkedIn users:
196,000,000
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
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 |
Employ in USA
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 | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| January 9 | National Day of Mourning for Jimmy Carter | National Holiday |
| January 20 | Inauguration Day | National Holiday |
| January 20 | Martin Luther King Jr. Day | National Holiday |
| February 17 | Presidents’ Day | National Holiday |
| May 26 | Memorial Day | National Holiday |
| June 19 | Juneteenth | National Holiday |
| July 4 | Independence Day | National Holiday |
| September 1 | Labor Day | National Holiday |
| October 13 | Columbus Day | National Holiday |
| November 11 | Veterans Day | National Holiday |
| November 27 | Thanksgiving Day | National Holiday |
| December 25 | 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 | 16 days (including public holidays) | No |
| Maternity Leave | 12 weeks (Unpaid and Job Protected) | Yes |
Leave Compliance
Payroll in USA
Payroll cycle
The payroll cycle in the USA is Biweekly or Monthly, depending on the state-federal legal rules of the employer.
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:
Read more
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.
How taxes work
Payroll Tax:
The contributions to social security are as follows (the maximum income for OASDI contributions in 2025 is USD 176,100).
| Scheme | Employee’s Contribution | Employer’s Contribution |
| OASDI | 6.2% | 6.2% |
| Medicare | 1.45% | 1.45% |
Employee Income Tax:
| Annual Taxable Income | Income Tax Rate (%) | |||
| Married Individuals Filing Joint Returns or Surviving Spouses |
Heads of Households
|
Unmarried Individuals (other than Surviving Spouses and Heads of Households) |
Married Individuals Filing Separate Returns | |
| 0 to 23,200 | 0 to 16,550 | 0 to 11,600 | 0 to 11,600 | 10% |
| 23,200 to 94,300 | 16,550 to 63,100 | 11,600 to 47,150 | 11,600 to 47,150 | 12% |
| 94,300 to 201,050 | 63,100 to 100,500 | 47,150 to 100,525 | 47,150 to 100,525 | 22% |
| 201,050 to 383,900 | 100,500 to 191,950 | 100,525 to 191,950 | 100,525 to 191,950 | 24% |
| 383,900 to 487,450 | 191,950 to 243,700 | 191,950 to 243,725 | 191,950 to 243,725 | 32% |
| 487,450 to 731,200 | 243,700 to 609,350 | 243,725 to 609,350 | 243,725 to 365,600 | 35% |
| Above 731,200 | Above 609,350 | Above 609,350 | 365,600 | 37% |
In addition to federal income taxes, 41 states and the District of Columbia tax income earned from employment. State income tax rates are marginal or flat:
VAT:
There is no VAT in the United States.
Bonus
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.
Employee offboarding
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;
Read more
Your employment toolkit for United States of America
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Overtime Pay
Minimum Wage
| State | Minimum Wage |
| Alabama | FLSA |
| Alaska | USD 10.19 per hour |
| Arizona | USD 13.85 per hour |
| Arkansas | The Basic Minimum Rate per hour is USD 11.00, applicable to employers of 4 or more employees.
The overtime premium rate is one and one-half times the employee’s regular rate unless otherwise specified. |
| California | USD 16.00 per hour |
| Colorado | USD 14.42 per hour |
| Connecticut | USD 15.00 per hour |
| Delaware | USD 11.75 per hour |
| District of Columbia | USD 17.50 per hour |
| Florida | USD 13.00 per hour |
| Georgia | FLSA and USD 5.15 per hour for any employer not subject to the FLSA |
| Hawaii | USD 12.00 per hour |
| Idaho | USD 7.25 per hour |
| Illinois | USD 14.00 per hour |
| Indiana | USD 7.25 per hour for employers with 2 or more employees |
| Iowa | USD 7.25 per hour |
| Kansas | USD 7.25 per hour |
| Kentucky | USD 7.25 per hour |
| Louisiana | FLSA |
| Maine | USD 13.80 per hour |
| Maryland | USD 15.00 per hour
Montgomery county – USD 17.15 per hour for companies with 51 or more employees; USD 15.50 for companies with 11 to 50 employees; USD 15 per hour for companies with 10 or fewer employees Howard County – USD 15 per hour for companies with15 or more employees; USD 15.50 for companies with less than 15 employees |
| Massachusetts | USD 15.00 per hour |
| Michigan | USD 10.10 per hour |
| Minnesota | Minnesota has different minimum wages for employers classified as large and small. Large employers are those with an annual revenue of USD 500,000 and must pay at least USD 10.59 per hour. Employers with revenue less than this are considered small and must pay USD 8.63 per hour. |
| Mississippi | FLSA |
| Missouri | USD 12.00 per hour |
| Montana | The minimum wage in Montana is USD 4.00 per hour for employers not regulated by the FLSA and USD 9.95 per hour for those who are. |
| Nebraska | USD 10.50 per hour |
| Nevada | Nevada has different minimum wages for employees depending on the healthcare benefits offered by the employer. The minimum wage for employees with qualifying benefits is USD 11.00 per hour. For employees without benefits, the minimum wage is USD 12.00 per hour. |
| New Hampshire | USD 7.25 per hour |
| New Jersey | USD 14.13 per hour |
| New Mexico | USD 12.00 per hour |
| New York | The minimum wage in New York is set at USD 14.20; however, for NYC, Westchester, and Long Island, the minimum wage is USD 15.00. |
| North Carolina | USD 7.25 per hour |
| North Dakota | USD 7.25 per hour |
| Ohio | The minimum wage for employees working for employers with USD 372,000 in gross receipts as USD 10.10 an hour. All other employees are subject to a USD 7.25 minimum wage. |
| Oklahoma | FLSA and USD 2.00 per hour for any employer not subject to the FLSA |
| Oregon | In Oregon, the minimum wage is based on location. The standard minimum wage is USD 14.70 per hour, the non-urban area is USD 13.70 per hour, and the Portland metro area is USD 15.95 per hour. |
| Pennsylvania | USD 7.25 per hour |
| Rhode Island | USD 13.00 per hour |
| South Carolina | FLSA |
| South Dakota | USD 10.80 per hour |
| Tennessee | FLSA |
| Texas | USD 7.25 per hour |
| Utah | USD 7.25 per hour |
| Vermont | USD 13.18 per hour |
| Virginia | USD 12.00 per hour |
| Washington | The minimum wage for Washington is USD 16.28 per hour, but the city of Seattle has a higher rate of USD 19.97 per hour. |
| West Virginia | USD 8.75 per hour |
| Wisconsin | USD 7.25 per hour |
| Wyoming | FLSA and USD 5.15 per hour for any employer not subject to the FLSA |
Overtime Pay
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;
| 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 |