Currency
United States Dollar (USD) ($)
Capital
Washington D.C
Population
331,449,281
Economy
$68,309 Per Capita GDP
Language
English
Hire employees in the United States
If you’re looking to hire employees in the USA, Vurke employs state-of-the-art resources and unlimited access to a professional team that handles the legal requirements for your business. From hiring the right candidates to drafting the employment agreement, the USA team of Vurke perform all these essential tasks for you.
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Vurke provides an effective global network solution to expand your business and handles complete payroll without you having to set up another entity
If you’re looking to hire employees in the USA, Vurke employs state-of-the-art resources and unlimited access to a professional team that handles the legal requirements for your business. From hiring the right candidates to drafting the employment agreement, the USA team of Vurke perform all these essential tasks for you.
Entitlement |
Explanation |
Statutory Working Hours |
8 hours a day and 5 days a week |
Federal minimum wage |
$7.25 an hour |
Rest period |
Paid 10 minutes rest period for every 4 hours of work in a 7 to 8 hours workday (Across many states) |
Parameters |
Information |
Weekly working hours |
40 hours |
| Average: 8 hours a day for five days a week | |
| However, a part-time employee works for less than 40 hours a week. | |
Overtime |
At the rate of 1.5 times the average pay rate, an employee must be paid if he/she works more than eight hours a day, according to the Fair Labor Standards Act (FLSA). |
| For instance, an employee working at $20 per hour would receive $30 per hour as overtime. | |
| Full-time employees in managerial or executive positions are exempted from overtime laws because they receive salaries instead of hourly payments. | |
Public Holidays |
In the United States, employers have the flexibility of deciding the working status of their employees on a public holiday. If the employer desires, they can instruct their employees to work on holidays without paying them a holiday or overtime fee. |
Sick Leave |
Employees in the United States are not permitted to take extended leaves in a year like other countries. While this comes as a benefit for employers, employees are unsatisfied with the lack of federal policies in this regard. A study observed that 52% of American employees had unused leaves by the end of the year. |
| The basic federal law governing the sick leave policies across the country is the Family and Medical Leave Act (FMLA). According to this, the selected categories of full-time employees are entitled to an annual leave of up to 12 weeks for family or medical emergencies, including pregnancies. Many states like California and New Jersey have different laws for maternity leave. | |
| A company chooses to provide paid, or unpaid FMLA leaves according to their convenience. The federal government does not have any strict regulations on that matter. | |
Personal Information |
The Health Insurance Portability and Accountability Act protects employees’ personal information, such as their medical history or social security number. The state governments can have separate acts for protecting employee privacy. However, the common Federal Act along with the information they protect are listed below. |
| Fair and Accurate Credit Transactions Act – Credit information | |
| Genetic Information Non-discrimination Act – Genetic information |
Employers of record companies in the USA appoint contractors and full-time workers based on the company’s requirements. Many companies choose to hire a contract worker instead of a full-time employee because it releases them from providing the following benefits.
- Health insurance
- Vacation time
- 401(k) matches
A contractor or a contract worker is also known as a freelancer or independent employee in different countries. Companies appoint them for a specific project or time instead of providing permanent jobs with perks. These contractors can be individuals, limited liability companies, or limited liability partnerships appointed by businesses for a short or long period. Unlike a full-time employee, a contractor is not legally bound to one company. They can work with multiple companies provided that their work gets completed within the assigned deadlines. The labor laws in the United States are different for full-time employees and contract workers.
Here are some of the differences between a contract and a full-time employee in the United States.
Full-time Employee
Parameters |
Full-time Employee |
Benefits and Taxation |
Since a full-time employee works on business payroll, the company has the authority to withhold the required taxes as per federal and state laws before disbursing the remaining payment. Some of the taxes are: Social Security tax Federal income tax Medicare tax Additionally, the company deducts the required charges for additional benefits like health savings accounts (HSAs), flexible spending accounts (FSAs), and health insurance. |
Goals of Hiring |
An employer expects dedication, commitment, and loyalty to the organization from a full-time employee. They ensure employee engagement to instil company values and practices because their services are required in the long run. |
Level of Independence |
A full-time employee is paid more than a contract employee because their nature of work is different. However, they also have less independence at work. This is because their managers or bosses instruct and direct them to perform the required tasks. |
Flexibility |
A full-time employee is compelled to follow the discipline and rules set by the employer. As they work for one company only, the expectation of loyalty and productivity is higher from them. |
Training |
Full-time employees are expected to be team players who understand the dynamics of a company. They are hired for a long duration, and that is why the companies design elaborate onboarding and training programs for them to understand the company culture, values, goals, and teams. |
Contractors
Parameters |
Contractors |
Benefits and Taxation |
Contractors have a fixed wage decided upon at the time of their interview. This wage is paid to them without excluding any taxes. As a contractor, separated from the company’s payroll, it becomes the task of a contractor to pay their self-employment and federal income tax.The company is not liable to provide any additional perks to a contract employee, such as health insurance or Flexible Spending Account (FSA). However, contractors can pay for these perks individually. |
Goals of Hiring |
Employers understand that most contract workers are usually in search of other job opportunities that provide short-term returns. Accordingly, the employer expects different outcomes from a contractor in terms of productivity and work commitment. A company looks for a contractor who has the required expertise and skills for working on a particular assignment or a project for a short duration. However, an employer can ask a contractor to become a full-time employee if both parties agree. |
Level of Independence |
The nature of a contractor’s job makes it easy to understand the high level of independence offered by their professional lifestyle. When compared to full-time employees, they have fewer financial perks but more autonomy in the job. Unlike full-time employees, contractors have the independence to choose their method of working and hours, as long as they make their required submissions within the stipulated timeline. |
Flexibility |
Contractors work for multiple companies at once. They have the liberty to balance their work and life at their convenience while juggling different clients. At the cost of not getting paid for their holidays, contractors can take their breaks any time as needed. |
Training |
As contractors are expected to be professionals and experts in their niche, most companies do not work on any specific onboarding or training procedures with them as done for full-time employees. The employer provides these employees with the required information to complete their assignments at the start of their job. |
Probation periods:
Many companies in the United States hire employees ‘at-will.’ Unless the employment contract says otherwise, there is no specific period for which an employer hires an employee in his organization. In such a case, the employer has the right to terminate the employee without any reason or notice. Montana is a state in the US that has a particular set of rules for deciding the termination of an employer-employee relationship. Generally, the probationary period in the USA is six months unless the contract says otherwise. If an employer in Montana decides to terminate an employee after the probationary period, they must do it on reasonable grounds done for a good cause.
Bonuses:
Bonuses are detailed in contracts between employer and employee but are not mandated or overseen by government legislation.
Termination and severance considerations:
For termination of employment in the USA, the federal or state governments don’t require advance notice from the employer or employee. However, suppose the company is terminating an employee based on the terms mentioned in the WARN (Worker Adjustment and Retraining Notification) Act. In that case, they must send an advance notice to the employee. Mass lay-offs are an example of the terms in the act.
There is no general severance pay law in the USA that determines the exact severance pay by an employer. Based on the details agreed upon by the employer and employee in the collectively bargained agreement or the employment contract, the severance pay is decided. Many American states demand the employers provide information relating to the unemployment insurance benefits and medical insurance perks to their employees before dismissing their employees.
For working in the United States, a work visa is required for every employee. There are different types of work visas for allowing an international employee to work in the United States for a specific duration. Check out the list below for US work visa requirements and details. Vurke takes care of the visa requirements that need to be checked and maintained from the employer’s end.
Type of visas |
Explanation |
Employment-based green cards |
Based on employment preferences, thousands of job-seekers in the USA apply and obtain their green cards or permanent resident status. The categories of these visas are EB-1 to EB-5. |
Temporary work visa |
Temporary work visas are categorized based on the employee or business person’s experience and employment type. Individuals can choose from business visitor visas, investor visas, or temporary skilled worker visas. |
NAFTA-based visa |
The citizens of Mexico or Canada with a job offer from the United States are eligible to get a visa for temporary work. The North American Free Trade Agreement (NAFTA) allows the residents of these countries to obtain a visa quickly with minimum documentation. |
L-1 visa |
This is an employer visa for the USA that can be obtained to transfer a business in the country. |
A work permit in the United States is issued by USCIS (U.S. Citizenship and Immigration Services). It is an identity card that proves the right of an individual to work in the United States. Depending on the place of processing and the type of work permit, it could take several days for processing a USA work permit for foreigners. It is also possible to get a USA work permit without a job offer through EB-5, O-1, and EB-1 visas. Vurke, through a network of resourceful agents and professionals and as the local partner of a remote company in the USA, ensures your work authorization in the United States by providing employment sponsorship.
Incorporation
The different ways of setting up a company in the USA by a foreigner are listed below:
- Sole Proprietorship
- S-Corp
- C-Corp
- Limited Liability Companies
- Partnerships
Limited Liability Companies (LLC) or C-Corp are the popular routes chosen by a business in the USA. These methods provide limited liabilities to business owners operating locally. Startups that are searching for investments opt for C-Corporations while the small business owners set up an LLC.
The first step to incorporating a holding company in the USA is to register your LLC with the help of a Registered Agent. This process takes three days to complete. Once the company is registered, entrepreneurs must seek a physical business address to ensure a smooth relationship with payment processors and banks. All professional letters and credit cards will be redirected to this physical location of your company.
The next step is to set up a bank account for your business, but the company needs an Employer Identification Number (EIN) to complete this step. Vurke saves your time and efforts required at this stage by becoming your local partner.