Hiring in the USA
The employee’s work location matters. Plan the federal requirements and the state and local rules together before you set a start date.
Choose the right employment model
Confirm that the proposal gives you the US legal employer you need. EOR, PEO, payroll software and contractor administration solve different problems. Ask the provider to name the employing company, confirm the work state and explain responsibilities for payroll, benefits, workplace issues and employment changes.
Assess whether the role can be carried out under that arrangement. An EOR agreement does not by itself resolve every corporate-tax, licensing, immigration or commercial activity question.
Record the work state and role
Document where the person will actually work, their duties, expected hours, pay, bonuses and travel. Require review before a move to another state. Check the applicable minimum wage, overtime, paid leave, pay notices, expense treatment and payroll requirements using the relevant state authority.
The federal FLSA establishes a $7.25 hourly minimum wage for covered nonexempt workers and generally requires at least time-and-a-half after 40 hours in a workweek. Where applicable state rules are more protective, those rules matter too. A salary or job title alone does not determine exemption.
DOL guidance on the FLSA · DOL state wage reference. Check local rules as well.
Confirm work authorisation
Agree who completes and retains Form I-9 and how identity and employment authorisation documents will be examined. The employer generally completes Section 2 within three business days of the employee’s first day of work for pay. Special rules apply to shorter employment.
Do not set an unconditional start date on the assumption that an EOR can sponsor a visa. Have the provider and qualified immigration advisers assess any sponsorship or status constraints first.
Agree pay and benefits
Write down salary, bonus terms, working arrangements, reporting lines, confidentiality and intellectual-property provisions appropriate to the role. Review any state-specific notices and restrictions with the employing provider.
Ask for a benefits schedule before accepting the price. Health insurance plan networks, deductibles, dependent coverage and employee contributions affect the offer’s value. Confirm any retirement match, paid time off and benefit eligibility waiting period. Treat provider plan rules separately from statutory obligations.
The FMLA provides qualifying unpaid, job-protected leave for eligible employees of covered employers. Eligibility generally includes 12 months of employment, 1,250 hours in the preceding year and the applicable worksite/headcount test. State leave laws may provide different or additional rights.
DOL FMLA fact sheet. Ask the EOR how coverage, eligibility and any joint-employment rules apply to this arrangement.
Set up payroll and records
Confirm pay frequency, bank details, tax-withholding forms, employee classifications, overtime recording and payroll approval deadlines. Get the employer tax and insurance assumptions in writing. Agree who reports a bonus, expense, absence or state move and how payroll corrections are made.
IRS employment tax guidance explains withholding and employer tax responsibilities. Read the 2026 cost summary for the distinction between employer charges and employee deductions.
Plan changes and exits
Contact the employing provider before changing compensation, working location or employment status, and before communicating a termination. Request the state-specific final-pay, leave and benefit steps and check the agreement’s notice and exit charges.
Keep a record of who is responsible for each action. This guide is a procurement starting point, not a determination that a proposed arrangement complies with every applicable law. Official sources were checked 30 September 2026; verify later changes before acting.