Hire in the United States
Hire across all 50 US states without the complexity of multi-state registrations, FICA obligations, and state-specific compliance. Vectis is your fully compliant US Employer of Record — onboard in 48 hours.
Quick Facts
US Employment Law Guide
A practical overview of US federal and state employment law — from FLSA overtime to California-specific compliance and ACA obligations.
Employment Contracts
- ✓At-will employment is the default in 49 states (except Montana)
- ✓Written offer letters strongly recommended but not required federally
- ✓Non-compete enforceability varies dramatically by state
- ✓FLSA (Fair Labor Standards Act) sets federal minimums
- ✓State-specific requirements: California, NY, IL add extra obligations
Working Hours & Overtime
- ✓FLSA requires 1.5× pay for hours over 40/week for non-exempt workers
- ✓No federal daily overtime — only weekly threshold applies
- ✓Exempt employees (salary + duties test) have no overtime requirement
- ✓California has daily overtime (8+ hours) and double time (12+ hours)
- ✓Meal and rest break requirements set by state law
Leave Entitlements
- ✓No federal paid vacation requirement (at-will market norm: 10–15 days)
- ✓FMLA: 12 weeks unpaid leave for medical/family (50+ employee companies)
- ✓State paid family and medical leave: CA, NY, WA, CO and growing
- ✓ADA reasonable accommodations for disability-related leave
- ✓Bereavement and jury duty leave policies vary by state
Wages & Pay Structures
- ✓Federal minimum wage: $7.25/hour (many states/cities significantly higher)
- ✓California min wage: $16/hour (some cities: $18+)
- ✓New York City: $16.00/hour minimum wage (2024)
- ✓FLSA regular rate must include non-discretionary bonuses for OT calculation
- ✓Final paycheck timing rules set by individual state law
Employer Taxes & Benefits
- ✓FICA: 7.65% employer share (6.2% Social Security + 1.45% Medicare)
- ✓Federal Unemployment (FUTA): 6% on first $7,000 (credit reduces to 0.6%)
- ✓State Unemployment Insurance (SUI): varies by state and experience rating
- ✓ACA: health insurance required for employers with 50+ FTE employees
- ✓State-mandated disability insurance: CA, NY, NJ, RI, HI
Termination & Compliance
- ✓At-will: either party can terminate with or without cause (most states)
- ✓WARN Act: 60-day notice for layoffs of 100+ employees
- ✓State WARN equivalents often cover smaller employers (CA: 75 employees)
- ✓Final paycheck: same-day in California, next pay period in most states
- ✓COBRA continuation coverage notice required on qualifying terminations
How to Hire in the US with Vectis
From offer letter to first payroll — we manage every step of US federal and state compliance.
Share the details
Role, salary, state, and start date. We assess state-specific obligations, classification (exempt/non-exempt), and benefits requirements.
We draft the offer
State-compliant offer letter with at-will language, FLSA classification, and all required disclosures for the employee's home state.
Onboard & verify
I-9 right-to-work verification, state new-hire reporting, FICA and SUI registration, and W-4 setup on day one.
Run payroll & stay compliant
Bi-weekly payroll with FICA, FUTA, SUI, federal and state income tax, W-2 at year-end, and ongoing state law updates.
“We had employees in 12 different states — CA, NY, TX, WA, and more. Managing 12 separate state tax accounts and employment law variations was impossible. Vectis unified it all into one platform.”
Federal Holidays in the United States
The US has 11 federal holidays. State and local holidays also exist. Most private employers observe federal holidays but are not legally required to.
US Hiring FAQs
Common questions about employing staff in the United States.
Ready to hire in the United States?
Vectis is your Employer of Record across all 50 US states. We handle multi-state compliance, FICA, FUTA, and every state-specific employment law — so you can hire anywhere without the overhead.
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