Global Expansion Resources | USA
USA Employment Contracts
Expand into the USA with our expert PEO services
Ensure you comply with US employment laws and issue compliant USA employment contracts through our leading PEO Services
As a specialist workforce management partner, Leap29’s global PEO solutions are here to help you overcome the intricacies of foreign employment laws, and assist you with international compliance. Our worldwide professional employer services can guide you through the complex process of outlining compliant and fair USA employment contracts that not only protect you, but also your international hires, on your journey towards global expansion.
While expansion into the USA offers many benefits to rising businesses, the process equally presents some daunting challenges. As a global PEO service provider, with over 25 years of experience, Leap29 is here to help you with your company’s international expansion.
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USA Expansion Advice
Overview of USA employment contracts
In the US, the majority of workers are employed on an ‘at-will’ basis without a written employment contract, meaning employment can be terminated by either party, with or without cause or notice.
Instead of a written employment contract, American employees generally receive a written offer of employment that details the basic terms and conditions. As US employment laws can vary from state to state, there are no federal requirements as to the minimum contents of an offer letter.
For example, in New York, employers must notify recruits (in writing) at the time of hiring, the following details:
- Regular rate of pay
- Pay day
- Overtime rate (if applicable)
- Method of payment, i.e. whether employees will be paid by the hour, shift, day, week, salary , piece or commission
- Any allowances that will be claimed as part of the minimum wage, e.g. tips, meals, lodging, etc.
Highly-skilled and compensated employees (such as high-level executives) are traditionally employed in accordance with a written employment contract.
What types of employment contracts are there inthe USA?
USA employment contracts can generally be classified into the following categories:
- Permanent (At-Will Employment): Either the employer or employee can terminate the employment at any time without cause, except in cases of discrimination or other illegal reasons.
- Fixed-Term Contracts: These are less common but are used for specific projects or time-limited roles.
- Freelance/Independent Contractor: Freelancers and independent contractors are self-employed and provide services under a contract for a specific period of time or on a project/ad-hoc basis.
- Part-Time and Temporary Work: These roles tend to be more limited in hours and may be seasonal or short-term.
This information is based on federal regulations (as opposed to state regulations) and/or common practice.
Can I change an employment contract?
Unless an employee signed a written contract that defined their exact responsibilities, job title, pay-rate, benefits, and more – it is fair practice for American employers to make changes to the terms of employment for recruits working at-will.
How do I write a USA employment contract?
If a US worker is employed under the terms of a written employment contract, such as a highly-skilled or compensated employee or someone working under a fixed-term contract, this contract must comply with either federal or state laws (depending on the state) regarding (but not limited to) the following:
- Probation – There is no maximum mandated probationary period. The most common period is 90 days, but this can be extended up to 12 months.
- Working hours – The standard, full-time workweek is usually 40 hours spread over five days. Federal law limits the workweek to 40 hours before overtime pay is required.
- Overtime – For any additional hours worked over the 40 hour minimum, overtime must be paid at 1.5 times the employee’s regular rate of pay. Certain jobs are exempt from overtime under the Fair Labor Standards Act (FLSA), including some salaried positions in managerial or professional roles.
Why use a PEO partner to manage USA employment contracts?
Working with a PEO management partner alleviates the stress of juggling complex, foreign employment laws and the core, day-to-day running of your globally expanding business.
By acting as your Professional Employer Organisation (PEO), our dedicated team of specialists can help you avoid unnecessary and costly fines, penalties and punishments for non-compliance, as well as disputes, unhappy employees and disruptions to your growing business.
Alongside the management of your US employment contracts, our friendly and knowledgeable team can also help you manage all aspects of compliance, multi-country payroll, HR duties, entity set ups and more.
Here at Leap29, we also pride ourselves on being one of the most versatile PEO companies in the industry. With global recruitment services available for several lucrative sectors, we can assist you with your international expansion into the Construction & Engineering, Life Science & Pharmaceutical, Manufacturing, Oil & Gas, Power & Renewable Energy and Technology sectors in over 180 countries.
If you want to find out more about how our PEO Services in the USA can support your global expansion, call our experts on +44 (0) 20 8129 6860 or email [email protected] to get started.
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