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SALARY PAYMENT IN United States Dollar (USD, $)
CONTRACT LANGUAGES English
PAYROLL TAX Varies per state
PAYROLL CYCLE Bi-weekly or weekly
TIME TO HIRE 12 hours
Hire and pay talents
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180+ countries
Improvements in the technologies that facilitate remote working combined with the impact of the Covid19 pandemic led to a considerable increase in the number of remote workers in the United States.
With flexible working agreements and fully distributed teams becoming increasingly popular across the USA, it’s important that employers have an understanding of their responsibilities in regard to remote work.
The first point to note is that, regardless of where your company is based, it’s the employment laws of the state where your remote employees are working that apply. Crossing state lines is at the crux of the legal implications of working with remote employees in the USA.
Employment laws can differ markedly between states and local municipalities. Take minimum wage as an example; in a situation where the business is located in one state but the remote employee is located in another, it’s the minimum wage rate of the state where the employee is working from that applies.
Overtime pay is another example where employment law differed between states. The state of Maryland requires employers to pay overtime rates on anything above 40 hours in a week, whereas the state of California requires employers to pay overtime rates to employees who work more than eight hours in a single day.
It’s essential that employers know where their remote employees are working from and have an understanding of the differences in employment laws at the states and local/municipal levels. At Horizons, our in-country legal and HR teams can advise on best practices and ensure that your business is fully compliant with the USA’s labor laws.
Your business can easily hire employees in USA without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
With its sizable and highly skilled workforce, combined with the adherence to at will employment, the USA is a great country for remote work. Employers need to be aware of the differences in employment law at the state and local levels, which can add to the complexity of ensuring legal compliance.
Online freelancing platforms are an option, but the casual nature of these types of services present risks to some employers. To ensure compliance with the USA’s labor laws, especially state and local employment legislation, foreign employers looking to hire remote workers in the US are advised to utilize the services of a USA PEO.
