The national (federal) minimum wage is USD 7.25 per hour or USD 1,160 per month. There is additional state-by-state minimum wage laws.

The above is based on a single employee with no partner or dependents

The employer cost is generally estimated at 9.50%-12.50% (depending on the state) of the employee salary. 
- Social security - 6.2% up to a yearly limit of USD 9,932.40
- Medicare - 1.45%
- Federal Unemployment - 0.60% up to a yearly limit of USD 42
- State Unemployment -  1%-4% with yearly limits based on the state
- Worker’s Compensation - 0.25%-0.30%
- Payroll Tax (California only) - 0.38%

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Overtime payment is mandatory for certain types of work and roles at both the Federal level under The Fair Labor Standards Act (FLSA) and in certain states. Certain roles and types of work may, however, be exempt from mandatory overtime requirements. For these exempt roles. Overtime is considered included in the salary.

Deel does not support positions that require the calculation of overtime (non-exempt).

In the US, pregnancy is a specific qualifying criteria for protected unpaid leave under Federal law with the Family and Medical Leave Act (FMLA). Under the FMLA, pregnant employees are entitled to 12 weeks of unpaid leave. This leave must be contiguous unless otherwise granted by an employer.

Employees are eligible for FMLA leave if:

• They have worked for their employer for at least 12 months
• Have worked for their employee at least 1,250 hours over the past 12 months
• Work at a location where the employer employs 50 or more employees within 75 miles

In the US, Federal law allows for parental leave under the Family and Medical Leave Act (FMLA). Either or both parents can go on family leave within the first year after the adoption or birth of a child. Employees are entitled to 12 weeks of unpaid leave. This leave must be contiguous unless otherwise granted by an employer.

Employees are eligible for FMLA leave if:

• They have worked for their employer for at least 12 months
• Have worked for their employee at least 1,250 hours over the past 12 months
• Work at a location where the employer employs 50 or more employees within 75 miles

In the US, sick leave is covered under the Family and Medical Leave Act (FMLA) and only applies to serious illnesses. The FMLA provides up to 12 weeks of unpaid leave for an employee.

Employees are eligible for FMLA leave if:

• They have worked for their employer for at least 12 months
• Have worked for their employee at least 1,250 hours over the past 12 months
• Work at a location where the employer employs 50 or more employees within 75 miles

To qualify as serious illness, either the employee or a member of the employee's immediate family must have an illness, injury, impairment, or physical or mental condition that involves either:

• Inpatient care in a hospital, hospice, or residential medical care facility
• Continuing treatment by a health care provider.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Every Federal, State, and City ordinance must be followed by employers while dismissing a worker. Termination cost might include Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), which is a federal law that allows employees to continue with their health insurance while unemployed.

There are no statutory severance provisions in the USA.

Deel observes 6 commonly recognized holidays in the United States. There are also 5 holidays that are recognised by the Federal Reserve, and employers have the choice whether to offer these days off based on what works best for the employee and the employer’s business needs.

Deel recognizes the following holidays, which are commonly recognized and most businesses except retail and hospitality close:

• New Year’s Day: January 1
• Memorial Day: Last Monday in May
• Independence Day: July 4
• Labor Day: First Monday in September
• Thanksgiving Day: Fourth Thursday in November
• Christmas Day: December 25

The following holidays are recognised by the Federal Reserve, where the Federal Reserve and most banks close, and employees of the Federal government are given a day off:

• Martin Luther King Jr. Day: Third Monday in January
• President's Day: Third Monday in February
• Juneteenth: June 19
• Columbus Day: Second Monday in October
• Veteran's Day: November 11

Onboarding can take 1 business day, provided that the employee has submitted all the required compliance documents on platform and that the employee and clients have signed the employment agreement, MSA, and SOW. Enrollment in health insurance will be done within the first week of employment.

Enrollment in health insurance is required.

🔺 Important note: we are unable to accept part-time EORs in the USA. This means we may only hire full-time EORs.

Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Contract term
• Job role
• Job description
• Place of work
• Manager
• Employment type
• Holidays/leaves
• Salary
• Payment terms
• Termination

Probation periods are not statutory in the USA because there is at-will employment. We do not accept probation period for the US.