USA Employer of Record (EOR)

Start hiring in USA

Simple, compliant hiring with Horizons EOR

Hire in the USA

Horizons provides compliant hiring solutions to ensure your business in the USA operates in line with American labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, the United States in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as a USA Employer of Record, absorb all local employer liabilities. Partnering with our USA EOR is the quickest and most cost-effective way to enter the American market.

Facts & Stats

stay compliant with United States labor laws

Employment Laws

Employment contracts in USA

While not strictly a legal requirement, it is important for employers in the US to provide all employees with a written employment contract which includes all relevant details of the working relationship, such as sick leave, vacation leave, compensation, and so on. The contracts should be written in English and use the local currency of US dollars. Oral contracts can also technically be legally enforceable but can present issues in practice, so it is always best to use formal written contracts.

By partnering with our USA Employer of Record, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term

Indefinite

Risk of Misclassification

The US, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in the US may lead to fines and penalties for the offending company.

Working hours in USA

Normal working hours in the US are 40 hours per week and eight hours per day, although this does vary from role to role. When employees work over 40 hours, most are legally entitled to overtime pay at a rate of at least 150% of normal pay. Some employees are exempt from maximum working hours, and this exemption should always be written into their individual employment contract.

Public Holidays in the USA

Holiday Schedule in USA [2024]

In the US, employees are not legally entitled to any paid public holidays. However, most employers do offer some, with the following being the most common:

Date	Holiday name
1 Jan Monday	New Year’s Day
2 Jan Tuesday	New Year’s Day (substitute)
15 Jan Monday	Martin Luther King Jr. Day
19 Feb Monday	Presidents’ Day
27 May Monday	Memorial Day
19 Jun Wednesday	Juneteenth
4 Jul Thursday	Independence Day
2 Sep Monday	Labor Day
14 Oct Monday	Columbus Day
11 Nov Monday	Veterans Day
28 Nov Thursday	Thanksgiving Day
25 Dec Wednesday	Christmas Day

USA Vacation Leave

Employees in the US are not legally entitled to vacation leave as standard. Most employers do offer some paid leave allowance, but it varies massively from employer to employer and role to role and is still generally significantly lower than most other countries in the world.

Expert Knowledge

Robert McCall,
Sales Manager (Austin)

“Due to the dedicated working culture in the US, many employees do not take their full allowance even when offered it.”

USA Sick Leave

Employees in the US are not entitled to any paid sick leave as standard. However, the Family and Medical Leave Act (FMLA) does dictate that most employees are entitled to up to 12 weeks of unpaid sick leave every year. Additionally, most employers choose to offer a paid sick leave allowance for their employees as part of their benefits package. Also, some state-level regulation does entitle employers to paid sick leave, so it is important that you understand the local laws when employing in the US.

Maternity and Paternity Leave in the USA

Unlike most countries, employees in the US are not entitled to paid parental leave as standard. However, some states do have regulations to provide paid parental leave, and many employers choose to offer it as part of their benefits packages. Also, the FMLA does provide 12 weeks of unpaid leave for all employees in the US.

Employee Severance and Terminations in the USA

The US varies from most countries in its laws around terminations and severance rights. Most states adhere to the concept of ‘at-will employment’, meaning that employees can be terminated at any time and for almost any reason (besides things like race, gender, or religion). Employees are also allowed to leave for any reason and are not required to give notice.

Severance payments are not required, but some employers do offer them as part of their benefits packages. Some employees may be entitled to payment when they lose their jobs and it isn’t their fault. They also retain employer-linked health insurance for a time after losing their jobs.

By partnering with our USA EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Taxation in the USA

Employers and employees in the US are required to pay towards different funds, with both needing to pay 6.2% of salary to social security tax and 1.45% to Medicare. Additionally, employers need to pay unemployment tax for every employee.

Employees in the US are taxed progressively, so pay more at higher levels of income. The rates range from 10% to 37%. Rates also vary depending on whether the payer is single, married, or head of a household. Employers do not need to withhold taxes, but some choose to.

Businesses are taxed on a federal level, but there are also varying rates imposed by different states, so you need to understand the specific laws in your location.

Health Coverage in the USA

Employers are not legally required to offer private health insurance as an employee benefit in the USA, but almost all do, and they may be penalized by the government for not doing so. The US does not have nationalized healthcare, so most employees rely on their employers for some or all of their health coverage, and it is an important element of most benefits packages.

Expert Knowledge

Sebastian Klotz,
Sales Manager (Berlin)

„Foreign companies hiring in the US often underestimate the importance of the employer’s role in providing medical benefits, something which is covered automatically by social security systems in Europe.”

hassle-free USA compensation & benefits

Compensation & Benefits

Compensation Laws in the USA

The minimum wage in the US is set at a federal level, but some states also have their own higher rate. The standard federal minimum is USD 7.25 per hour.

Benefit Management in the USA

Benefits packages are particularly important in the US, with many employees relying on their packages to provide healthcare, sick leave, and more. This makes them a deciding factor for many when choosing their next role. But establishing a benefits system in the US as a foreign organization can be a difficult process with many different laws and administrative procedures potentially causing delays. One effective solution is to outsource your USA benefits management to Horizons benefits specialists. Our team will ensure that your benefits system is set up quickly and compliantly, so you can focus on a rapid and successful expansion. Horizons USA EOR can provide expert guidance to help simplify the process of expanding into the United States.

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Hire in the USA

Employment Laws

Working hours in USA

Compensation & Benefits

Frequently asked questions

Hire borderless talent with Horizons

Hire in USA in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

Can an EOR in the USA hire both local and foreign nationals to work in USA?

An EOR in the USA can feasibly hire both local and foreign nationals to work in the USA.

However, the ability of Horizons to sponsor your foreign national employee in the USA may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' USA EOR service take to hire an employee?

In most cases, Horizons’ USA EOR can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in the USA.

Is it possible to get a work visa in the USA?

It is possible to get a work visa in the USA. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in the USA are limited, however—get started today to secure your employees’ visa spot.

USA Employer of Record (EOR)

Start hiring in USA

Simple, compliant hiring with Horizons EOR

Hire in the USA

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stay compliant with United States labor laws

Employment Laws

Employment contracts in USA

Fixed-term

Probationary period

Termination notice period

Severance

Special note

Indefinite

Probationary period

Termination notice period

Severance

Risk of Misclassification

Working hours in USA

Public Holidays in the USA

USA Vacation Leave

USA Sick Leave

Maternity and Paternity Leave in the USA

Employee Severance and Terminations in the USA

Taxation in the USA

Health Coverage in the USA

hassle-free USA compensation & benefits

Compensation & Benefits

Compensation Laws in the USA

Benefit Management in the USA

Hire in USA in 24h without your own local entity.

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