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Labor standards in the United States

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Published on 24 June 2013
Updated byAnne-Lise Mestryon 07 June 2018

If you are looking for a job in the United States, here is some useful information on labor standards.

Before you move to the United States, you need to gather information on the labor market and its standards. Make sure that you will be able to adapt to these standards.

In the United States, working hours are not generally fixed. A week generally consists of 40 working hours, which means eight working hours a day. Overtime is paid according to an agreement between the employer and the employee. At federal level, labor law advocates a minimum wage of $7.25 per hour. However, gratuity can also be a form of remuneration.

Deductions

When you receive your salary, some contributions will be automatically deducted: contributions to the federal pension insurance and federal health insurance for retirement. Your employer will contribute 6.2% and 1.45% to the two kinds of insurance respectively. You will have to contribute only 6.2% to pension insurance. You should also know that unemployment insurance contributions which are levied in every state shall be credited to the limit of 5.4%.

Leaves

Each state has its own labor standards. There is no law officially saying that a company has the obligation to grant annual leave or holidays to its employees, and if they should be compensated. But it is common that employees receive an average of 12 days per year in addition to 8 public holidays in the United States. You can find more information on the Department of Labor United States website.

Employment contract

The US labor market is known to be liberal. Do not expect to receive an employment contract when you are hired. You will more likely get a verbal agreement with your employer, which implies that no formality is required in case of breach of contract on either side. However, as a general rule, you must give at least two weeks' notice before leaving your job.

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.

About

Anne-Lise studied Psychology for 4 years in the UK before finding her way back to Mauritius and being a journalist for 3 years and heading Expat.com's editorial department for 5. She loves politics, books, tea, running, swimming, hiking...

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