United States PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in United States without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in United States, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with United States labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in United States. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
United States - Country Overview
Bordered by two nations, Mexico and Canada, the United States is an economic, military, and technological powerhouse. The country has a diverse range of natural minerals, including the world’s largest coal reserves.
Washington, D.C. (District of Columbia)
US Dollar (USD)
Constitutional Federal Republic
Employment Contracts in United States
In the United States, an employment contract can be either in writing or verbal.
Some of the details typically mentioned in the written contract include:
- Performance assessments
- Sickness & disability
- and more
The different types of employment relationships are:
- Permanent Employment – Most employees in the United States are presumed to work at will.
- Fixed-Term Contracts – The maximum duration of fixed-term contracts in the United States is not documented in labor law (including renewals).
- Temporary Employment – Temporary employees, also known as “temps,” are employed in the United States for a set period. They are usually hired to fill temporary vacancies or to fill other gaps in the organization’s workforce. They may work part-time or full-time hours and are not typically eligible for employee benefits.
In the United States, a probationary period typically lasts up to 90 days.
Working Hours in United States
The standard workweek in the United States is 40 hours, according to the law.
Employee Leave in United States
Employees in the United States are entitled to the following leave:
- Annual leave– The Fair Labor Standards Act (FLSA) of the United States does not require payment for time not worked, such as vacations, sick leave, or federal or other holidays. Employers decide how much vacation to provide and to whom.
- Maternity leave – The federal law of the United States is unique in that it does not provide cash benefits to women while on maternity leave. In the absence of federal legislation mandating paid maternity leave, several states have enacted legislation to compensate new parents.
- Sick leave – There are no federal legal requirements for paid sick leave in the United States. Unpaid sick leave is required by the Family and Medical Leave Act (FMLA), and organizations subject to the FMLA must provide it.
- Paternity leave – The federal Family and Medical Leave Act (FMLA) guarantees 12 weeks of unpaid paternity leave in the United States. The right to FMLA leave for birth and bonding of a child expires 12 months after the date of birth.
The following are the statutory national holidays observed in the United States:
- January 1 – New Year’s Day
- January 18 – Martin Luther King Jr. Day
- January 20 – Inauguration Day
- February 15 – Presidents Day
- May 31 – Memorial Day
- June 18 – Day off for Juneteenth
- June 19 – Juneteenth
- July 4 – Independence Day
- July 5 – Independence Day observed
- September 6 – Labor Day
- October 11 – Columbus Day
- November 11 – Veterans Day
- November 25 – Thanksgiving Day
- December 24 – Day off for Christmas Day
- December 25 – Christmas Day
- December 31 – Day off for New Year’s Day
Employee Benefits in United States
In the United States, the usual forms of social insurance are Social Security, Medicare, and Unemployment Insurance.
There are two types of compulsory Social Security plans for employees in the United States:
- The Old-Age, Survivors, and Disability Insurance (OASDI) Program
- The Supplemental Security Income (SSI) Program.
The United States government program incorporates public funds to provide economic security to the general public. There are 4 main types of benefits that the U.S. Social Security Administration (SSA) offers:
- Retirements benefits
- Disability benefits
- Benefits for spouses or other survivors of a family member who has passed
- Supplemental Security Income (SSI)
Some examples of social insurance programs are:
- Dependents/Survivors Benefit – In the United States, Old-Age, Survivors, and Disability Insurance (OASDI) provides survivors benefits to family members of a deceased insured member who was under the age of 62 and had at least 6 quarters of coverage. Eligible survivors include the deceased’s spouse, children, and parents.
- Life and Disability Insurance/Benefit – In the United States, disability benefits are distributed through two programs:
- The Social Security disability insurance program, known as Old-Age, Survivors, and Disability Insurance (OASDI), provides pensions to employees who meet the age-based insurance coverage requirement.
- The Supplemental Security Income (SSI) program assists disabled adults and children with limited income and resources.
The other statutory allowances are:
- Birth allowance
- and more
Employee Termination in United States
In the United States employees, generally, do not have contracts and are hired at will. However, if an employment contract exists, the parties can negotiate contract terms governing notification procedures.
Global Mobility in United States
There are typically the following types of visas:
- Temporary Visas
- B-1/B-2 Tourist/Visitor Visas
- E-1/E-2 Treaty and Investor Visas
- F-1 and M-1 Student Visas
- H-1B Specialty Occupation (Professionals) Visas
- J-1 and Q-1 Exchange Visitor Visas
- K-1 Fiancé(e) Visas
- L-1 Intracompany Transfer Visas
- O-1 Extraordinary Ability Worker Visas
- P-1 Artists and Athletes Visas
- R-1 Religious Worker Visas
- TC and TN NAFTA and US-Canada Free Trade Agreement Visas
- Permanent Residency (Green Cards)
- Family-Sponsored Immigration Visas
- Employer-Sponsored Immigrant Visas:
- EB-1 Foreign Nationals of Extraordinary Ability, Outstanding Professors/Researchers, and Multinational Executives/Managers
- EB-2 Workers with Advanced Degrees or Exceptional Ability in the Arts, Sciences, or Business
- EB-3 Skilled Workers and Professionals
- EB-4 Special Immigrant Visas for Religious Workers
- EB-5 Investor/Employment Creation Visas
- DV-1 Visas (the “Green Card Lottery”)
- Other Categories
- Refugee and Asylum Applications
- Temporary Protected Status