Highlights
- For international companies hiring talent in the U.S., navigating the country’s employment laws can be complex.
- Federal and state laws regulate key aspects of the employer-employee relationship, such as minimum wage, overtime, anti-discrimination, and employee benefits.
- At Lighsource Global, we provide EOR services to help you hire, pay, and manage employees in the US while staying fully compliant. Contact us to get started!
Planning to hire U.S. employees? Expanding your business internationally is an exciting venture, but you can’t afford to ignore U.S. employment laws. From minimum wage to anti-discrimination laws, compliance is crucial.
This guide cuts through the confusion, delivering the must-know information you need to protect your business and your employees.
Let’s get started!
Key Employment Laws in the U.S.
If you want to operate in the U.S., it’s essential to familiarize yourself with the main regulations that govern the employer-employee relationship in the country.
Here’s an overview of the most relevant employment laws in the U.S.:
Fair Labor Standards Act (FLSA)
This is a fundamental piece of U.S. labor law. It covers three primary areas:
- Minimum wage. The FLSA mandates a minimum hourly wage that employers must pay their employees. Currently, the federal minimum wage is $7.25 per hour. However, many states have their own minimum wage laws, and employers must comply with the higher federal or state minimum wage.
- Overtime pay. Under the FLSA, most employees must receive overtime pay for hours worked beyond 40 in a workweek. This overtime pay is typically calculated at one and a half times the employee’s regular hourly rate.
- Child labor laws. The FLSA imposes strict restrictions on the employment of minors. These regulations cover age limits, permissible work hours, and the types of jobs young workers can perform.
Equal Employment Opportunity (EEO) Laws
EEO laws are designed to prevent employment discrimination based on protected characteristics. These laws ensure that all individuals have equal opportunities for employment, regardless of their background.
- Discrimination protection. EEO laws prohibit discrimination in various aspects of employment, including hiring, firing, promotions, compensation, and job training. Protected characteristics under federal law include:
- Race
- Color
- Religion
- Sex
- National origin
- Age (40 and older)
- Disability
- Genetic information
Many states have expanded their EEO protections to include additional categories such as sexual orientation, gender identity, and marital status.
- Harassment prevention. EEO laws protect employees from harassment based on protected characteristics. This includes verbal and physical harassment and creating a hostile work environment through offensive jokes, slurs, or other discriminatory behavior. Employers have a responsibility to prevent and address harassment promptly and effectively.
Family and Medical Leave Act (FMLA)
The FMLA is a U.S. federal law that grants eligible employees up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons.
This means employees can take time off without fear of losing their job to address the following:
- Serious health conditions: Their own or a family member’s
- The birth or adoption of a child: Including bonding time with the newborn or newly adopted child
- Caring for a family member with a serious health condition: This includes spouses, children, and parents.
Affordable Care Act (ACA)
The ACA introduced significant changes to the U.S. healthcare system, including regulations for employer-sponsored health insurance.
Employers with 50 or more full-time equivalent (FTE) employees must offer affordable health insurance coverage to their full-time employees and their dependents up to 26 years old. If they fail to do so, they may face penalties.
State-Specific Employment Laws
In addition to federal labor laws, the United States has several state-specific employment regulations. These laws can vary significantly from state to state, creating additional complexities for employers operating in multiple jurisdictions.
Key areas where state laws often differ include:
- Minimum wage: Many states have minimum wages that exceed the federal minimum wage.
- Overtime pay: Some states have stricter overtime rules than the FLSA.
- Family and medical leave: Several states offer more generous family and medical leave benefits than the FMLA.
- Paid sick leave: Some states mandate paid sick leave for employees.
- Discrimination protections: State laws may expand the categories of protected characteristics beyond federal law.
- Wage and hour laws: Some states have specific regulations related to meal breaks, rest periods, and wage payment.
- Unemployment insurance: State-run programs might have varying eligibility criteria and benefit amounts.
- Workers’ compensation: Workers’ compensation laws vary by state, offering different levels of coverage and benefits for workplace injuries.
Staying updated on the latest employment laws, both federal and state, is crucial for maintaining compliance and mitigating legal risks.
Navigate U.S. Legal Waters: Your Trusted Compliance Partner
For companies seeking to hire talent in the U.S., understanding the legal requirements to work in the country is essential. However, staying compliant with these complex regulations requires ongoing attention and expertise.
At Lightsource Global, an Employer of Record (EOR) specializing in international employment, we offer comprehensive solutions to manage your U.S. workforce efficiently and compliantly. Our expert team can handle payroll, benefits, taxes, and HR administration, allowing you to focus on growing your business.
Let Lightsource Global be your partner in navigating the U.S. employment landscape. Contact us today to learn more about how we can support your expansion plans.
