Why is it Important to Comply With US Labor Laws?

There are three different layers of US labor laws you must comply with when employing someone in the US, as explained in this video. 

 

US Labor Laws Differ Per Area

The three US labor laws you must comply with when employing someone in the US are: 

 
 
 

Federal law

Federal law is determined by the federal government and is the overarching US labor laws that govern all 50 states in the United States. You must be aware of federal US labor law requirements when you hire US employees.

 
 

State specific laws

Each state has its own government who can set their own tax system and state labor laws. This means labor law will vary depending on the state your employee is operating in. Remember, there are 50 different states, which equates to 50 different US labor laws to track, on top of federal compliance.  

 
 
 

Local/city laws

Each city or local jurisdiction may have its own labor laws you must follow when hiring employees in the US, in addition to federal and states laws. 

For example, let's say you want to employ a worker in San Francisco. You will have to navigate a multi-dimensional tax and legal system: 

  • US federal laws and taxes 

  • The state of California’s laws and taxes 

  • Local government laws and taxes of San Francisco  

 
 
 

Navigate US Employment With PGC

It is important to complete research in the areas you are hiring in and keep track of employment laws which change frequently. A specialized US Employer of Record like PGC can help you maintain compliance at a federal, state, and local level when employing someone in the USA. Whether you’re new to US employment or want to hire in another state without the hassle, using an EOR can simplify and speed up the employment process.

 
 

Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.