☑️ The Basics

Currency: United States Dollar (USD) (Rate)

Public Holidays: 11 federal holidays (see here); some states may have additional public holidays

Employer Taxes: 10-15% of gross salary

Official Language: English

Payroll frequency: Weekly, bi-monthly or monthly, depending on state

Three things to know about employing in United States

  1. Provisions such as minimum wage, overtime rules and pay, and paid time vary by state.
  2. There is no legally required notice period for termination in the US, and either party can end an employment contract at will for any lawful reason at any time. Parties can agree to a notice period by contract.
  3. Employment contracts are unusual for non-executives. Offer letters will suffice to provide notice of job particulars.

Employment in United States

Notice Period

Employees are employed ‘at will’ and employers are not legally mandated to provide them with a formal notice period for termination. Therefore, either party can terminate the employment relationship with no notice, provided it is not for an unlawful reason. However, some employment agreements can specify a notice period.

Termination & Severance

Severance pay is not legally mandated and is typically a matter of agreement between an employer and an employee. When agreed upon, it can be included in employment contracts. Some employers choose to offer severance pay based on the employee’s length of service.

Probationary period

Employers are not required to include probationary periods and doing so may create confusion for a U.S. based employee about the nature of their at-will employment.

Minimum Wage

The federal minimum wage is $7.25 per hour.

Some states and municipalities, however, might set a higher minimum wage, which applies to employees working there.

IP protection and non-compete agreements

Employers' ability to enforce non-compete agreements varies from state to state.

Presently, no state law requires an employer to pay its former employees remuneration during the period of the non-compete agreement. However, some employers can choose to compensate their former employees for this with an amount that varies by state and position.

Working Hours

Typically 40 hours per week.


Eligible employees are paid 1.5 times their regular pay rate for all hours over 40 in a workweek.

Some states require a higher compensation pay for work performed on the seventh consecutive day of work.

Paid Holidays

There is no statutory requirement to pay employees for time off for vacations or holidays. The typical amount of vacation, sick leave, or paid time off (PTO) varies from 10-20 days per year.