One of the most challenging aspects of expanding operations in a new country is finding the right employees to help drive success. Companies beginning recruiting and hiring in the U.S. need to learn all the local employment laws and comply with them throughout the process.
Recruiting in the U.S.
The National Labor Relations Board (NLRB) is in charge of administering the National Labor Relations Act (NLRA), which applies to unions and employers in the private sector, including certain aspects of employment even for workplaces that are not unionized . The NLRB also acts to prevent and remedy unfair labor practices of labor organizations and employers.
The Department of Labor, a federal agency, is also responsible for enforcing certain labor laws primarily related to wages and working hours.
Legal and background checks
Some federal laws, including Equal Employment Opportunity Commission (EEOC) laws, govern background investigations. The Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA) both apply to consumer credit information and limit what information an employer may ask from a candidate and how this information can be used in making a hiring decision.
Keep in mind that relying on these checks alone can lead to discriminatory hiring practices. Some state, county, and city laws can overlap with federal laws or place stricter parameters on what type of background information can be asked for, so it’s best to check the specific requirements related to obtaining consumer credit reports, managing personal information in compliance with data privacy laws, retaining records, and checking criminal histories before making an employment offer.
Laws against discrimination in the U.S.
It is generally illegal to discriminate against an applicant or employee based on race, color, religion, sex, age, or disability. The EEOC can investigate discrimination charges and impose fines and penalties. Some states also have laws that make it illegal to discriminate based on other factors such as sexual orientation or identity.
Certain interview questions that could suggest discrimination based on illegal factors should be avoided while interviewing candidates, including anything about:
- Family, such as whether the candidate has children or is married, engaged, or planning a family.
- Age.
- Politics.
- Religion.
- Sexual orientation.
- A disability or injury.
- Criminal convictions.
- Race.
- Personal appearance.
Employers should also avoid language in job postings that limits eligibility to individuals with citizenship. For instance, companies shouldn’t state or imply that the job is open only to U.S. citizens, H-1Bs, green card holders, or those with U.S. birth certificates.
How to hire employees in the U.S.
The U.S. does not have a legal requirement for employment contracts of a specific term or period of time. Employment is generally “at-will.” Under at-will employment, companies can terminate employment at any time for any legal reason with or without notice or severance, unless contracted otherwise.
While most companies do not have written employment contracts, it is common to provide new hires with a written job offer that outlines the terms and conditions of their employment. The terms are largely up to the employer and can be negotiated with the employee, although they are subject to state and federal laws — including laws against discrimination.
It is best practice for employees to sign their employment agreement to the job offer to avoid any future misunderstandings. The contract should outline terms such as:
- Benefits.
- Compensation.
- Paid time off.
- Termination and severance requirements.
- Restrictive covenants, if permitted by law.
U.S. employment laws
Employment laws vary significantly from one state to the next within the U.S. However, there are some standards that all companies must follow at the federal level, such as:
- Wage standards: The federal minimum wage is USD 7.25 per hour for non-exempt employees and $43,888 per year for exempt employees as of 2024. However, some states, counties, and cities enforce a higher minimum. Overtime is generally owed to non-exempt employees who work more than 40 hours per week.
- Protections against discrimination: The U.S. has several laws to prevent discrimination in the workplace. Employers cannot discriminate against employees based on race, religion, color, sex, national origin, age, or disability. Some states also protect employees against discrimination based on other traits such as sexual orientation or identity.
- Termination requirements: For the most part, employers can terminate workers for any lawful reason at any time without legal liability. However, they cannot terminate employment based on any of the protected characteristics outlined above.
Onboarding in the U.S.
Every company takes a different approach to onboarding, depending on the nature of the work the company does. The best place to start is to figure out what kind of training and support new employees will need to succeed in their roles. Many companies onboard employees in groups to make the process as efficient as possible.
A detailed schedule for each employee’s first week on the job will ensure an engaging and positive employee experience. Companies might also want to:
- Go over the terms of employment with each worker on their first day.
- Offer insights on the company culture and expectations.
- Familiarize employees with the tasks they’ll perform from day to day.
Grow globally with G-P.
G-P never forgets that behind every hire is a human being. That’s why we’ve backed our fully customizable suite of global employment products with our robust team of HR and legal experts, so we can remain at your side, ready to support you as you build your global teams. With the #1 Global Growth Platform, you have the recruitment tools and services you need to find your perfect full-time employee or contractor match.
Contact us today to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.