Current Region & Language

United States

Employment in United States

Updated on: April 1, 2025

Currency

USD

Employer Taxes

FUTA, Social Security, Medicare

Payroll Frequency

No specific requirement; wage payments must be made no later than one pay period following the end of the regular pay period.

Language

English

Date Format

MM/DD/YYYY

United States By The Numbers

334 million

Population

27.36 trillion

GDP

10

National Holidays

Country Information

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Weekly Working Hours

This state follow federal law, which requires overtime to be paid at 1.5 times the regular rate of pay for all hours worked above 40 hours per week.

National Holidays

  • New Year’s Day – January 1
  • Martin Luther King Jr. Day – Third Monday in January
  • Presidents’ Day (Washington’s Birthday) – Third Monday in February
  • Memorial Day – Last Monday in May
  • Independence Day – July 4
  • Labor Day – First Monday in September
  • Columbus Day (or Indigenous Peoples’ Day in some areas) – Second Monday in October
  • Veterans Day – November 11
  • Thanksgiving Day – Fourth Thursday in November
  • Christmas Day – December 25

Leave

Family and Medical Leave Act (FMLA): Eligible employees are entitled up to 12 workweeks of unpaid job-protected leave in a 12 month period.

Employment Contracts

Federal law does not mandate written employment contracts, but specific conditions and exceptions may apply

Types of Employment

There are three types of employment in the United States: employees, independent contractors, and agency employees.

Employment Costs

FUTA: 6% on wages up to $7,000 annually;
Social Security: 6.20% on wages up to $176,100
Medicare Tax: 1.45% on wages

IC Class Factors

Common Law Test (20-Factor Test) and Economic Realities Test

Labor Leasing

No labor leasing license is required.

Minimum Wage Requirements

The federal minimum wage in the United States is $7.25 hourly.

Medical Benefits

Minimum Essential Coverage, Affordability standards, applicable to employers with 50+ employees.

Probationary Periods

No Federal Law or Regulation governing probationary periods except for federal employees.

Termination Notice

At-will employment: no notice required, except for large-scale lay-offs covered under the WARN Act.

Severance

No mandatory severance pay.

Pre-hire Checks

Federal: Employers must comply with the Fair Credit Reporting Act (FCRA) when conducting background checks. The FCRA requires employers to obtain written consent from the applicant and provide certain disclosures and notifications if adverse action is taken based on the background check. Additionally, the Equal Employment Opportunity Commission (EEOC) enforces guidelines to prevent discrimination in the use of background checks.

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