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Global Expansion Guide

United States

Manage and pay your employees easily with BIPO in the United States and 170+ other markets. Build your international teams today with our global Employer of Record service! We’ll take care of the complexities.

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Currency

United States Dollar (USD)

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Language

English

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Capital

Washington, D.C. 

Employer of Record
United States

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your EOR Partner

Benefits of BIPO EOR Service in the United States

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  • Employer of Record
  • United States

Employer of Record United States

Embark on your business expansion in the United States with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the United States market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

According to ‘At will employment’, approximately 74% of employees are employed on an “at-will ” principle. There is no mandatory legal requirement to sign a written employment contract between the employer and the employee in most states of the United States, normally all general terms and conditions are included in the duly signed offer. But in some states e.g. State New York, the employer is required by law to notify the employee in writing of certain terms of employment.

When hiring high-skilled or high-paid (e.g. executive employees) employees, written employment contracts shall be duly signed. They shall include general employment terms and conditions e.g. position, job description, salary, allowance, performance incentive as well as stock and equity. It shall also include the termination clause, good (reasonable) reasons to terminate the contract and severance payment for termination without any cause.

Statutory Contributions

Besides the federal statutory benefits listed below, states in the United States may have their own separated statutory benefits in addition.

Item Detail Employer Contribution Employee Contribution
FICA – Social Security Tax Social security 6.2% Taxable wages cap in 2025: $176,100 6.2% Taxable wages cap in 2025: $176,100
FICA – Medicare Tax Medical benefits 1.45% Annual wages $200,000 1.45% Annual wages are less than or equal to $200,000
FICA – Additional Medical Tax Medical benefits – 0.9% Annual eages are over $200,000
Federal Unemployment Tax Act (FUTA) Unemployment benefits 6%/0.6%, on the first $7,000 of each employee’s wages –
Total About 13.65% About 8.55%

Minimum Wage

Although the federal minimum wage in the United States is $7.25 per hour, every state / city has its own separated minimum wage standard. Effective 1st of January 2025, the minimum wage of the federal subcontractor had been adjusted to $17.75 per hour.

Public Holidays

The federal holidays in the United States in 2025 is shown as following. In addition, there are state and local holidays. Please refer to the announcement of the federal, states and local government. When a holiday falls on a Saturday, it usually is observed on the previous Friday; when a holiday falls on a Sunday, it usually is observed on the next Monday.

Holiday Name Date
New Year’s Day 1 January 2025
Birthday of Martin Luther King, Jr. 20 January 2025
Inauguration Day 20 January 2025
Washington’s Birthday 17 February 2025
Memorial Day 26 May 2025
Juneteenth National Independence Day 19 June 2025
Independence Day 4 July 2025
Labour Day 1 September 2025
Columbus Day 13 October 2025
Veterans Day 11 November 2025
Thanksgiving Day 27 November 2025
Christmas Day 25 December 2025

Working Hours

Normal Working Hours

  • Under the Fair Labor Standards Act (hereinafter FLSA), hours of work must be calculated on a workweek basis.
  • An employee’s workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. The workweek does not need to coincide with the calendar week.
  • It may begin on any day and at any hour of the day.
  • Different work-weeks may be established for different employees or groups of employees.
  • Averaging hours over two or more workweeks is generally not permitted

Rest Time

  • Generally, the FLSA does not require that employees (other than minors) receive any breaks, whether paid or unpaid. FLSA’s regulations outline only when breaks must be paid if they are offered at an employer’s sole discretion.
  • Every state and local ordinance may have requirements of rest time.
  • Employers are not required to compensate their employees for what is known as ‘bona fide meal periods’. In order for a break to be considered a bona fide meal period, it ordinarily must last at least 30 minutes, and the employee must be completely relieved from duty. This means that if office or factory workers, for example, are required to eat at their desks or machines, the time spent must be treated as work hours.

Overtime

  • The FLSA requires non-exempt employees to receive overtime pay for hours worked over 40 in a workweek. Generally, non-working time, which includes leave, rest time, holidays and vacation time, are not included in the 40 hours.
  • The FLSA does not limit the number of hours employees aged 16 and older may work in any workweek.
  • The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular rest days unless overtime is worked on such days.
  • Overtime pay: at a rate not less than time and one-half of the regular rates of pay.

Other Regulations

Federal law permits minors 14 and 15 years of age to work the following hours:

  • School day: maximum 3 hours
  • Non-school day: maximum 8 hours
  • School week: maximum 18 hours
  • Non-school week: maximum 40 Hours
  • None during normal school hours
  • None before 7 a.m.
  • None after 7 p.m.

Probationary Period

According to’ At will employment’, no related legal regulations in most states of the United States. For states local law and regulations allow probationary period, it shall be stated in a duly signed written offer / employment contract, which is 30 to 90 days at normal practice, sometimes it could be set longer such as one year.

Leave

Besides Statutory leaves of the federal is shown as following, employers need comply with relevant regulations of states ’or local government.

Federal statutory leave in the United States include:

TypeApplicable toDetails
Family and Medical Leave Act (FMLA)

Employees must:

• worked work for a covered employer

• have 1,250 hours during the 12 months prior to the start of leave

• work at a location where the employer has 50 or more employees within 75 miles; and

• have worked for the employer for 12 months. The 12 months of employment are not required to be consecutive in order for the employee to qualify for FMLA leave. In general, only employment within seven years is counted unless the break in service is (1) due to an employee’s fulfillment of military obligations, or (2) governed by a collective bargaining agreement or other written agreement.

The FMLA applies to government agencies and public and private elementary and secondary schools, and any private-sector employer who has 50 employees.

These employers must provide eligible employees with 12 work-weeks of leave in a 12-month period for:

• The birth of a child and to care for the newborn child within one year of birth

• The placement with the employee of a child for adoption or foster care and to care for the newly placed child within one year of placement

• To care for the employee’s spouse, child, or parent who has serious health condition

• A serious health condition that makes the employee unable to perform the essential functions of his or her job

• Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty;” or

• 26 work weeks of leave during a single 12-month period to care for a covered servicemember with a serious injury or illness if the eligible employee is the servicemember’s spouse, son, daughter, parent, or next of kin (military caregiver leave)

Termination and Compensation

Termination Notice

The United States, except for Montana, are on an “at-will” principle. Most states allow exceptions, but Florida, Alabama, Louisiana, Georgia, Nebraska, Maine, New York and Rhode Island do not allow any exceptions.

  • Individual dismissal

Unless stated in the employment contract or collective bargaining agreement, there is no legal requirement that employers should follow a termination procedure when dismissed individuals. However, employees will be protected from unfair dismissal in the event of violation of federal, state, or local discrimination or retaliation regulations.

  • Group Redundancy

The law does not have limits on group redundancy. However, the Worker Adjustment and Retraining Notification Act (hereinafter WARN) requires the employers to notify the following parties 60 days in advance of the business closure decision and massive layoff:

    • Affected workers or their representative (e.g. labor union)
    • Employees who will be laid off due to redundancy or business closure
    • Local government

Generally, employers with 100 or more employees must comply with the WARN, but not applicable to employees who worked for the employer less than 6 months in the past 12-month period, neither for those average weekly working hours is less than 20 hours.

Compensation

There is no legal requirement from the federal government.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI. As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:
  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Singaporean regulations.
  • Contributions and Taxes: Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours: We guarantee that your employment practices adhere to the United States minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with United States laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.
Services may vary across countries.

Benefits of BIPO Employer of Record Service in the United States

Unlock your growth potential with BIPO’s Employer of Record service in the United States. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance. From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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