Employer of record in the United States: costs, rules and how to hire
Hire someone in the United States without opening your own US company.
An employer of record (EOR) can handle local employment while you manage the person’s work. Start by confirming the provider’s coverage and the arrangement available for your specific hire.
By Employ Borderless · We help you understand and compare EOR services.
How does an employer of record in the United States work?
Three parties, two contracts: the EOR employs the person under a local employment contract, your company signs a service agreement with the EOR and directs the day-to-day work. Which arrangement is legal and sensible in the United States is decided by the questions below.
Your company
Choose the person, agree their role and manage their daily work.
The employer of record
Handles the agreed employment, payroll and HR services through the employing entity named in your contract.
Your employee
Works with your team under a local employment contract with the EOR’s employing entity.
- Do you already have an entity in this country?
- How many people are you hiring, and for how long?
- Is the work genuinely independent, or is it a job?
- Who carries the employment risk if the arrangement is challenged?
What each route means in full
- Your own entity
- Choose it when: You already have a company here, or you are committing to a substantial local team for the long term.You become the legal employer. You arrange payroll, benefits, filings and employment support yourself, and you carry the setup and running cost.
- Employer of record
- Choose it when: You have a person to hire here, want them employed properly, and do not want to open a company for it.The provider is the legal employer through its own entity. You direct the work and pay one invoice covering salary, employer costs and the service fee.
- Independent contractor
- Choose it when: The work is genuinely independent: their own business, their own methods, their own clients.A contract for services, not employment. The label does not decide the status; how the person actually works does, and getting it wrong is reclassified after the fact.
Hiring in the United States: the short version
On our 2026 Employer Burden Index the United States ranks 158th of 192 countries, with a composite of 13.9, and its Termination Cost Index score is 0, the floor of that scale, at 111th of 190. By the standards of the countries most first-time hirers compare it with, American employment is cheap to run and cheap to exit. The complication is the state, and often the city: it decides the minimum pay, the overtime rules, the leave, the payroll timing and how fast final pay falls due, so the answer changes with the desk the person works from rather than the address on your contract.
An employer of record employs your hire and runs the local payroll, contract and agreed benefits while your team directs the work. Everything below is organised around the four things that change the answer: the state, the overtime classification, the split between employer payroll taxes and employee deductions, and the exit.
Your first hire in the United States in five decisions
Five things settle a US hire, and the numbers behind each one are set out later on this page.
- Entity or EOR. An EOR earns its fee while you are in one or two states; it is the number of state registrations, not the headcount, that eventually tips the decision.
- Employee or contractor. Economic dependence and control decide it, never the Form 1099, and California's ABC test is the strict end of the range.
- Budget line. On $80,000 of wages, employer Social Security is $4,960, Medicare $1,160 and FUTA $42 with the full credit, so $86,162 before state charges, benefits and the provider fee.
- Notice reality. At-will means no statutory notice period, but the reason still has to be lawful and final pay can be due immediately, as it is for a California discharge.
- Realistic start. Form I-9 Section 1 on the first day of work for pay and Section 2 within three business days, with the start date set by state setup and payroll cutoff rather than an onboarding promise.
Hiring in the USA through an employer of record still means following the law of the state where the employee lives, which is why most of this guide is about state rules rather than federal ones.
EOR, entity, or contractor in the United States?
An $80,000 hire costs $86,162 in federal payroll taxes and salary before a single state charge, benefit or fee is added, which is the cheapest starting point of any major hiring market. The trap is that the EOR contract reads like a transfer of responsibility and is not one. What decides your actual exposure is which entity employs the person, in which state, and which duties US law keeps pointing back at you regardless of the paperwork.
Compare the complete arrangement
US rules can make the provider and your business joint employers for particular duties. Ask which legal entity employs the person and how it operates in the employee's state, and if a provider mentions IRS certification, check it: certified professional employer organization status is a specific federal employment-tax status, not an approval of every EOR service.
Budget for the work as well as the fee
There is no headcount at which an entity automatically becomes the better choice, and anyone who gives you one is guessing. What decides it is how many states you will hire in, how long the roles will last, and whether you have anyone who can administer employment properly. The federal payroll-tax arithmetic behind the $86,162 figure is set out in full under taxes below.
Agree who handles employee matters
Write down who records hours, receives leave requests, handles complaints and owns workplace safety. Under FMLA joint-employment rules both employers count jointly employed staff, and a client cannot interfere with protected leave because the worker sits on the provider's payroll. Before signing, ask the provider to walk through a missed payroll run and a project ending early.
Moving from an employer of record to your own US entity
In the United States this is a commercial exercise rather than a legal one, and that cuts both ways. Hirers move once the team is large enough that per-employee fees exceed the cost of running payroll themselves, or once they want equity and benefits that sit awkwardly with a third-party employer. Because employment is generally at will and terminable on either side, moving someone from the provider's payroll to yours is an offer and an acceptance, not a transfer of anything.
The practical consequence is that almost nothing travels unless you carry it deliberately. Seniority for your own benefit plans, accrued but unused leave, the vesting clock on any equity, and enrolment in a health plan all reset or need crediting by agreement. The one thing that is rarely negotiable is the state registrations: your entity needs its own payroll and unemployment insurance registration in every state where the person works, and that is the step that sets the date.
Questions worth putting to the provider before you sign: will you release the person to our entity without a non-solicitation objection, what notice does the service agreement require, who settles the final pay and any accrued leave the state requires to be paid out, and will you hand over the payroll and eligibility verification records we will need to keep. I have not found a federal source that requires continuity of employment on a change of employer of this kind, so the answers belong in the contract rather than in an assumption.
How to hire employees in the United States
Form I-9 Section 2 is due within three business days of the first day of work for pay, and that deadline, not the provider's onboarding window, is what sets a realistic start date. Everything else in a US hire is negotiable and this is not. What decides the rest of the sequence is the state: its registrations, its notices and its payroll cutoff.
What settles the route here is how permanent the role is and how many states you are willing to register in. Direct employment puts the state registrations, payroll, insurance and policies on you. A contractor arrangement only holds if the person is genuinely independent under the federal tax, wage and applicable state tests.
Work through the hiring steps
Section 1 is signed by the employee no later than that first day, the employee chooses which acceptable documents to show, and remote examination is available only under the authorised procedure. Set the start date after the provider has checked documents, state setup, payroll cutoff and any immigration process; there is no universal three-day onboarding timetable.
How long the first hire takes, and what sets the date
There is no single answer in weeks, because the binding dates here fall after the start rather than before it. What sets your date is whether the employing entity is already registered in the state the person will work in.
So rather than a number of weeks, here is the sequence, in the order the steps actually gate each other. Work backwards from whichever one is unresolved in your case, because that is the one holding your date and the rest will not be.
- Agree the offer, the state of work and whether the role is exempt or non-exempt, since that decides overtime and the pay records the employer has to keep.
- Confirm the employing entity is registered for payroll and unemployment insurance in that state, which is the step that actually gates a new state.
- Complete the employment eligibility verification on the statutory timetable, which starts on the first day of work rather than at signature.
- Set up the benefit enrolments, because plan eligibility dates rarely match the start date and a gap in health cover is the complaint you will hear first.
- Land the start date on the payroll cut-off so the first cheque is not a partial period nobody expects.
The dependency to watch is not the hire, it is the state. Employing in a state for the first time adds registrations the provider has to hold before anyone starts, and that is the step to ask about by name.
What should you budget for hiring in the United States?
Your budget includes salary, employer contributions, agreed benefits and the EOR fee. Ask for a quote for the actual role and salary.
- Gross salary
- Employer contributions
- Benefits and other costs
- EOR service fee
- Gross salary: 100
- Employer social contributions: 7.65%
- Benefits and EOR fee: quoted per hire
The numbers behind this figure
| Cost | Amount |
|---|---|
| Gross salary | 100 |
| Employer social contributions | 7.65% |
| Benefits and EOR fee | Quoted per hire |
Source: Employ Borderless research, 2026
Published EOR base fees among providers covering the United States range from $99 to $699 per employee/month. These are provider base prices, not a quote for this hire or the total employment cost.
Employer contribution benchmarks · 2025
These stored OECD benchmarks help with initial planning. Earnings ceilings, employee circumstances and later changes can affect the actual charge; use the EOR’s itemised quote for your budget.
| Contribution | Rate |
|---|---|
| Employer social contributions | 8.087023% |
Separate employer costs from employee deductions
Read this table before you read any quote.
| Item | Employer cost | Employee deduction |
|---|---|---|
| Social Security, 2026 | Generally 6.2% on covered wages up to $184,500 | Generally 6.2% on the same covered wage base |
| Medicare | Generally 1.45%, without a wage cap | Generally 1.45%, without a wage cap |
| Additional Medicare | No employer matching share | 0.9% withholding on wages from this employer above $200,000 |
| FUTA | Generally 6% on the first $7,000; 0.6% with the full applicable credit | An employer tax |
| State taxes and programmes | State unemployment and other applicable employer charges | Income tax and applicable employee disability or leave deductions |
Two details inside that table are worth stating plainly. FUTA applies to the first $7,000 of covered wages per employee each year, dropping from 6% to 0.6%, or $42, only when the full 5.4-percentage-point state-tax credit conditions are met. And the 0.9% additional Medicare tax has no employer share: withholding starts on wages above $200,000 in the calendar year. Then ask for the state unemployment rate and wage base and any disability or local payroll charges as separate line items, because 7.65% is not an all-inclusive US employment burden.
What an employer of record adds to the employment cost
Budget the provider fee as a third line, next to gross pay and the employer contributions above. Across the market it runs from $99 to $799 per employee per month, or 8 to 20% of salary, and where a quote sits in that range is decided by the work rather than by the country: headcount, how much of the administration you hand over, and whether the provider is pricing a single hire or a team. I treat a quote at the bottom of the range as a question rather than a win, because the cheap number is usually the one with the fewest things inside it.
What the fee buys is the employment itself: the employing entity, the payroll run, the filings and the employer-side administration. What it does not buy is the cost of employing the person. Gross pay, the employer share of federal payroll taxes, unemployment insurance in each state where you employ, workers' compensation cover and whatever health plan you offer are all yours, and the per-state registrations behind them are the reason a second state usually costs more than the first. Ask for a quote that separates the fee from the pass-through costs, priced in US dollars, because a single blended figure hides which half moves when pay changes.
Average salary in the United States by occupation
Gross monthly earnings of employees per ISCO-08 occupation group, in USD, from the ILO's official labour statistics. These stored survey figures for the United States have reference year 2025. Use these survey earnings to benchmark an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (USD) | Approx. USD |
|---|---|---|
| All occupations | 6,273 | $6,273 |
| Managers · ISCO 1 | 10,342 | $10,342 |
| Professionals · ISCO 2 | 8,638 | $8,638 |
| Technicians and associate professionals · ISCO 3 | 6,509 | $6,509 |
| Clerical support workers · ISCO 4 | 4,487 | $4,487 |
| Service and sales workers · ISCO 5 | 3,699 | $3,699 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 3,565 | $3,565 |
| Craft and related trades workers · ISCO 7 | 5,382 | $5,382 |
| Plant and machine operators and assemblers · ISCO 8 | 4,736 | $4,736 |
| Elementary occupations · ISCO 9 | 3,623 | $3,623 |
Source: ILOSTAT, the International Labour Organization's statistics database (average monthly earnings of employees, both sexes), reference year 2025.
How to hire through an EOR in the United States
- Step 1
Define your hire
Prepare the role, work location, salary, working hours and target start date.
- Step 2
Confirm the local hiring route
Ask the provider to confirm that its employing arrangement fits this role and location, including any restrictions.
- Step 3
Review the full quote and contract
Check the legal employer, total costs, benefits, responsibilities and exit terms before signing.
- Step 4
Complete onboarding
Coordinate employment documents, required checks, equipment and the payroll cut-off with the EOR.
- Step 5
Keep employment changes coordinated
Manage the work and tell the EOR about proposed pay, leave, contract or termination changes before they take effect.
What should the EOR arrange before your hire in the United States starts?
Confirm the employment terms, work eligibility, payroll and pension arrangements before the start date. Ask which local rules and agreements apply to your employee.
What types of employment contracts exist in the United States?
At-will employment means either side can end the arrangement without a fixed term, which is genuinely more flexible than anywhere in Europe. It is also the single most misread thing about US employment, because it says nothing about the reason, and the reason is where the money is. What decides whether a US contract holds up is the state it is written for: Montana has a different statutory framework, and contracts and collective bargaining agreements change the position again.
Write the offer for the person and location
At-will does not permit discrimination, retaliation or any other unlawful reason. Put the employing entity, role, work location, salary, pay dates, hours, overtime classification, benefits, leave and exit terms in writing, and distinguish an at-will arrangement from a promised fixed term. Check the required state notices rather than assume one English offer letter satisfies every state.
Choose contractor status on the facts
A signed contractor agreement and a Form 1099 settle nothing. Federal wage law looks at economic dependence, federal tax law at behavioural and financial control and the relationship between the parties, and state tests differ again. California is the strict end: under its ABC test the hiring business must establish freedom from its control, work outside its usual business, and an independently established business of the same kind. The DOL's guidance separates the 2024 contractor rule, still relevant to private litigation, from its enforcement approach under Field Assistance Bulletin 2025-1.
Check restrictions and repayment terms
The FTC states that its non-compete rule is not in effect or enforceable, and moved to dismiss its appeals in September 2025, so state restrictions decide the outcome: have any non-compete or confidentiality clause reviewed for the worker's location rather than copied from a template. For contracts entered into from 1 January 2026, California Business and Professions Code section 16608 also restricts terms requiring debt repayment or a penalty when employment ends, with specific exceptions, which reaches training, signing-bonus and relocation clauses.
Make ownership of work clear
US copyright law treats qualifying work created by an employee within the scope of employment as work made for hire, while commissioned contractor work has narrower statutory categories and a signed-writing requirement, so document the chain of rights from employee to employing entity to your business. California separately protects certain inventions developed entirely on the employee's own time without employer resources, subject to exceptions.
Keep employee discussions protected
Workers covered by the National Labor Relations Act can act together about wages, hours and other working conditions, including discussing pay and raising group concerns, and that protection can apply without a union, so have confidentiality, social-media and conduct clauses reviewed against it.
Misclassification risk, and who decides the question
A signed contractor agreement settles nothing, and in the United States the test that matters depends on who is asking. Federal tax law looks at the common law rules, and the evidence falls into three categories: behavioural, whether the business controls or has the right to control what the worker does and how they do it; financial, whether the business aspects of the job are controlled by the payer, including how the worker is paid and who provides the tools; and the type of relationship between the parties. Source: irs.gov, independent contractor or employee, checked 18 September 2026.
Either side can get an answer rather than guess at one. A business or a worker may file Form SS-8, Determination of Worker Status, and the tax authority will review the facts and officially determine the status, though it may take at least six months to come back. That timetable is the reason to ask the question before the engagement rather than during an audit. Source: irs.gov, independent contractor or employee, checked 18 September 2026.
The consequence is money and it is specific. If you classify an employee as an independent contractor with no reasonable basis for doing so, you may be held liable for employment taxes for that worker, and the relief provisions will not apply. Relief exists where you did have a reasonable basis and filed all the required federal information returns consistently. Federal wage law and the state tests run alongside this and reach their own answers, which is why one classification can survive a tax review and still fail in a state with a stricter test. Source: irs.gov, independent contractor or employee, checked 18 September 2026.
What catches employers out in the United States
Six recurring mistakes account for most of the money lost on US hires, and five of the six trace back to applying a national answer to a state question. All of them are cheaper to fix before signature than after. What decides whether they bite you is whether the quote and the offer were built from the employee's actual work location.
Resolve these points before signing
Each row below is a question to put to the provider in writing, with the answer that should come back.
| Issue | What to do |
|---|---|
| A nationwide rate can hide state obligations | Use the employee's actual work location for wages, leave, tax and insurance checks |
| A salary or job title does not prove overtime exemption | Check duties, salary basis and both federal and state thresholds |
| Employee deductions can be mistaken for extra employer costs | Separate each side's FICA share and keep FUTA on its limited annual wage base |
| At-will employment does not remove every exit obligation | Check the reason, protected rights, state notice, final pay and any promised benefits |
| An EOR contract does not provide immigration permission | Confirm the person's status, eligible petitioner and lawful start conditions |
| Older official text may have been amended | Read current notices and amendments alongside the underlying guidance |
Check the facts behind this guide
We check selected sources monthly and review relevant changes before updating the guide. Each fact note records its source, review date and applicable period. A successful page fetch does not verify a legal claim. A 2026 wage base, a quarterly earnings release and an older statute can all have the same review date while describing different periods.
The earnings figure is a Q2 2026 national gross median from BLS. It is not a 2026 annual average or a net-pay estimate. The state examples explain why the federal floor alone is not enough; they do not replace a check of every rule in the employee's location.
What taxes and social contributions apply in the United States?
Employer payroll tax on an $80,000 salary comes to $6,162: Social Security at 6.2% up to $184,500 of wages, Medicare at 1.45% uncapped, and $42 of FUTA. That is the entire federal employer load, and it is why the Burden Index puts the United States 158th of 192. The error that wrecks US budgets is not the rate, it is counting the employee's own deductions as an employer cost.
Example: an $80,000 annual salary
Here is the whole federal employer bill on a single illustrative salary.
| Illustrative item | Annual amount |
|---|---|
| Gross salary | $80,000 |
| Employer Social Security: 6.2% | $4,960 |
| Employer Medicare: 1.45% | $1,160 |
| FUTA with the full credit: 0.6% of $7,000 | $42 |
| Subtotal before state charges, benefits and provider costs | $86,162 |
That $86,162 is a federal subtotal and nothing more. Treat any quote that will not itemise the rest as incomplete.
Calculate income-tax withholding for the employee
For tax year 2026, federal individual income-tax rates range from 10% to 37%, with bands depending on filing status, and the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. Withholding depends on the employee's own information, with state and local income taxes possible on top, so never promise take-home pay from one average rate. Qualifying overtime compensation can receive a federal income-tax deduction under the 2025 to 2028 rules, but IRS payroll guidance still treats overtime as subject to Social Security, Medicare and FUTA taxes: that changes the employee's return, not your payroll cost.
Confirm immigration and permission to work
An EOR contract is not immigration permission, and that is the most expensive assumption on this page. An H-1B case requires a qualifying specialty occupation, an appropriate labour condition application and a petition by an eligible employer or agent, and USCIS expressly addresses work staffed to a third-party client, which does not make every EOR able to sponsor every hire. L-1A needs a qualifying relationship between US and foreign organisations that an unrelated EOR does not create. A provider's onboarding estimate is not a visa approval.
What pay and leave should your offer in the United States cover?
Agree pay, working patterns, paid leave and benefits as part of the offer. These affect both your hiring budget and how you plan the employee’s work.
- Paid annual leave: 0 days
- Public holidays: 11 days
- The rest of the year: 354 days
The numbers behind this figure
| Entitlement | Days a year |
|---|---|
| Paid annual leave (statutory minimum) | 0 days |
| Public holidays (national) | 11 days |
| Total statutory paid days off | 11 days |
Source: National government, 2026; National government, 2026. Statutory minimums. Eligibility, accrual and collective agreements can change what an individual employee receives.
How does payroll and compensation work in the United States?
The federal minimum wage is $7.25 an hour and California's general state minimum is $16.90 from 1 January 2026, which is the gap this whole section exists to explain. A federal number is a legal floor, not a market rate, and almost nobody pays it. What decides your offer is the wage order for the employee's actual city and occupation, then the market for the role.
Set pay for the role and location
Higher applicable state or local rates take priority over the federal $7.25 for covered nonexempt employees, and some locations and sectors sit above California's rate again. For a market sense-check, the Bureau of Labor Statistics reported median usual weekly earnings of $1,251 for full-time wage and salary workers in the second quarter of 2026, before taxes and deductions. That is a national median, not an average and not a quote for a role.
Agree when and how pay is calculated
There is no single US payroll cycle. Set regular pay dates that meet the employee's state requirements: California generally requires wages at least twice each calendar month on designated dates. Confirm payroll cutoffs, payslip details and final-pay deadlines with the EOR before the first payment. Bonuses belong in the offer too, because many promised or formula-based bonuses enter the regular rate used to calculate overtime for nonexempt employees.
Check overtime before setting the work pattern
Exemption is decided by duties, salary basis and threshold, never by a job title. For the main federal executive, administrative and professional exemptions the usual test requires qualifying duties, payment on a salary basis and at least $684 per week; the May 2026 amendment restored the pre-July-2024 regulatory text after the courts vacated the 2024 rule. California's corresponding 2026 salary floor is $70,304 annually, plus its own duties requirements.
Covered nonexempt employees generally receive at least 1.5 times their regular rate for hours over 40 in a workweek, and the federal FLSA sets no general eight-hour daily limit for adult employees. State rules can: in California the general rule is 1.5 times after eight and up to 12 hours in a day and double time after 12, with the first eight hours on a seventh consecutive workday at 1.5 times.
Record working time and breaks
California generally requires paid ten-minute rest periods per four hours or major fraction and a 30-minute meal period when work exceeds five hours, while under federal rules short breaks of about 20 minutes or less count as paid work and a meal period can be unpaid only when the employee is fully relieved of duties. The FLSA requires payroll records for at least three years and wage-calculation records for two, so agree early how your team hands the EOR complete hours and corrections, including remote work: that handover is where most wage claims start, and a move to another state changes the payroll obligations.
What benefits and leave are employees entitled to in the United States?
Federal law requires no paid vacation, no paid public holidays and no paid sick leave in ordinary private employment. That is the opposite of the European default, and it means the leave package is a competitive decision rather than a compliance one, right up to the point where a state adds its own rule. What decides the package is the state, then the market for the role.
Make health and retirement benefits clear
Health cover is what makes a US offer competitive, and it carries a real compliance threshold. The ACA employer shared-responsibility rules generally apply when an employer averaged at least 50 full-time employees, including full-time equivalents, in the previous calendar year. An applicable large employer can face a payment if it fails to offer coverage to at least 95% of full-time employees and their dependents, or if its offer fails the affordability and minimum-value rules. Ask the EOR which plan covers your hire, the employee contribution, dependents, waiting period and coverage in that location. Retirement is a separate question: a 401(k) match is not a uniform requirement, but state access rules such as California's CalSavers can be, and workers' compensation is administered through state systems.
Set the paid-leave package
State clearly how many paid days the offer includes, how they accrue and what happens to unused days. Sick leave is where state rules bite: there is no general FLSA requirement, but state and local rules can impose one, and in California covered employees generally receive at least five days or 40 hours per year, whichever is greater, after a 30-day work requirement and a 90-day waiting period.
Check family leave and job protection separately
FMLA is unpaid job protection, not paid leave, and its eligibility has more conditions than people expect. Eligible employees can take up to 12 workweeks for qualifying reasons, including their own serious health condition, specified family care, or bonding after birth, adoption or placement in foster care, and military caregiver leave can reach 26 workweeks in a single 12-month period. Coverage and eligibility both need checking: 50 employees for 20 workweeks, 12 months of service, 1,250 hours in the preceding year and 50 employees within 75 miles. With an EOR the counting changes, because jointly employed workers count for both employers, so ask the provider to calculate eligibility and assign the notice, benefits-continuation and reinstatement duties. State programmes sit on top: from 1 January 2026, Washington Paid Leave job-restoration rules generally cover employees of employers with at least 25 employees when employment began at least 180 calendar days before leave.
Plan pregnancy accommodations and pumping breaks
The Pregnant Workers Fairness Act requires covered employers, generally those with at least 15 employees, to provide reasonable accommodations for a qualified worker's known pregnancy, childbirth or related limitations unless there is undue hardship, and an employer cannot force leave when another reasonable accommodation is available. Most employees covered by the federal PUMP Act separately have a right to reasonable breaks to express breast milk for one year after birth, in a private space that is not a bathroom.
What happens if you need to end employment in the United States?
Discuss the proposed change with the EOR before giving notice or promising an exit payment. Ask it to confirm the procedure, timing and costs for the employee’s circumstances.
The United States sits at number 111 of 190 countries for statutory exit cost in our Termination Cost Index.
What are the termination and compliance rules in the United States?
The Termination Cost Index scores the United States at 0, the floor of the scale, 111th of 190 countries, because at-will employment carries no statutory notice period and no general severance entitlement. Exits here are genuinely cheap, and that is exactly why they go wrong: the money is in the reason and in the final-pay deadline, neither of which at-will touches. What decides the cost is the state and whether anyone announced a last day before the EOR had seen it.
Plan an employment exit before announcing it
Send the proposed exit to the EOR first. What governs is the reason, any at-will limits, state law, contracts and protected leave. Two rules can turn a routine exit into a scheduled one: federal WARN can require 60 days' written notice for qualifying closings and mass layoffs by covered employers, so review planned reductions together; and while the FLSA does not generally require severance, state law can, as qualifying New Jersey WARN events carry one week of pay for each full year of service.
Arrange final pay and benefits
Final-pay deadlines are a state matter and the fastest are measured in hours, which is why the calculation has to be finished before the last day is confirmed. In California, discharged employees generally receive earned wages and accrued vacation immediately, and an employee who quits without a fixed-term contract generally receives final pay on departure if they gave at least 72 hours' notice, or within 72 hours if they did not. New Hampshire and South Carolina each set their own deadlines, so never copy one state's process into another.
Keep workplace protections and notices current
Federal EEOC protections cover hiring, pay, promotion, harassment, benefits and dismissal, generally from 15 employees, with state and local protections applying lower, so agree how the EOR and your team receive and investigate concerns. Three newer obligations deserve a diary entry: California privacy requirements can cover job applicants and employees; its Workplace Know Your Rights Act requires an annual notice, first due by 1 February 2026; and Illinois Public Act 103-0804 took effect on 1 January 2026, addressing discriminatory uses of AI in employment.
These are stored source rules, not a case-specific termination calculation. Confirm the applicable procedure and current requirements before acting.
Choose an EOR for your hire in the United States
Compare the employing entity, itemised costs, local support, payroll deadlines and what happens if you change or end the arrangement.
Questions about hiring in the United States
Why does the employee's state matter?
Because it decides most of the answer. Federal law sets a floor for many employment rights, and state and local rules can require higher wages, more leave or extra protections on top. Confirm the state and city where the person will actually work, including a home office, and have the provider check it again before any move. A registered office in another state answers none of this.
How quickly can I hire through an EOR in the United States?
Faster than opening an entity, slower than the onboarding promise on most provider websites. The date depends on the employing arrangement, work location, employee documents, payroll cutoff, benefit setup and any immigration process. Ask which of those steps are outstanding and who owns each one, then set the start date from that list.
Should I use an EOR or employ directly in the United States?
I would use an EOR when you are testing a market, hiring into one or two states, or cannot yet staff employment administration in-house, and look at direct employment once the roles are clearly permanent and the state count keeps growing. Either way your team still needs a process for hours, leave, workplace concerns and changes, because an EOR does not absorb those.
What should I ask a US EOR before signing?
Ask for the employing entity, the state and role coverage, a cost breakdown that separates employer costs from employee deductions, the overtime assessment for this role, the health plan, leave policy, retirement arrangements and any immigration assessment. Then ask what happens on a missed payroll run and on an exit. A provider that will not itemise the first list, or answer the second, is telling you something.
What changed in the United States
Checked against official sources on .
No rule changes recorded since we began logging them.
Check the facts behind this guide
Each reviewed fact links to its source and shows its validation date and effective period. Monthly review does not mean that every rule changes monthly. Statistical benchmarks retain their original data periods.
View sourced facts and review dates
| Fact | Value | Source | Effective / data period | Last validated |
|---|---|---|---|---|
| Check the actual employing arrangement | An employer of record employs your hire and handles agreed contracts, payroll and benefits while your team directs the work. Ask which legal entity employs the person and how it operates in the employee’s state. US rules can make the provider and client joint employers for particular duties; the service agreement does not remove every responsibility from your business. | US Department of Labor | ||
| An EOR and a PEO are different arrangements | Compare who employs the worker and which payroll, benefits and tax duties the provider assumes. IRS certification is a specific federal employment-tax status for a certified professional employer organization, or CPEO. It is not a general approval of every EOR service or every employment obligation. For a CPEO, check its exact legal name and EIN, the customer contract and whether the worker qualifies as a worksite employee. | Internal Revenue Service | ||
| Keep a clear process between the provider and your team | Agree who records hours, receives leave requests, handles complaints, approves employment changes and manages workplace safety. Under FMLA joint-employment rules, both employers count jointly employed staff for coverage and eligibility. A client cannot interfere with protected leave because the worker is on the provider’s payroll. Responsibilities depend on the law and the real arrangement. | US Department of Labor | ||
| Start with the employee’s work location | Confirm the state and city where the employee will actually work, including a home office. Federal law sets a floor for many employment rights, while state and local rules can require higher wages or additional protections. Ask the provider to check the location before the offer and again before any move; a registered office in another state does not answer every employment or payroll question. | US Department of Labor | ||
| Record the offer and state requirements | Put the employing entity, role, work location, salary, pay dates, hours, overtime classification, benefits, leave and exit terms in writing. Distinguish an at-will arrangement from a promised fixed term or other contractual protection. Check required state notices and translations rather than assume one English offer letter satisfies every state’s rules. | USAGov, termination guidance for employers | ||
| At-will employment has limits | At-will employment generally allows either side to end employment without a fixed term, but it does not permit discrimination, retaliation or other unlawful reasons. Montana has a different statutory framework, and contracts, collective bargaining agreements and other protections can change the position. Have the EOR assess the proposed reason and applicable rules before ending a hire. | USAGov, termination guidance for employers | ||
| An introductory period does not suspend employee rights | If you use an introductory or probation period, explain its purpose, review dates and any lawful benefit waiting periods. Do not present it as a nationwide statutory period or a period free from wage, discrimination or leave rules. Check whether the wording changes the employment contract or the employee’s state-law position. | USAGov, termination guidance for employers | ||
| A contractor label does not decide employment status | Check the working relationship before choosing a contractor arrangement. Federal wage law examines economic dependence; federal tax law considers behavioural control, financial control and the parties’ relationship. A signed contractor agreement or Form 1099 does not settle the question. State tests can differ, so have the provider assess the actual role under each applicable test. | US Department of Labor | ||
| Separate current law from enforcement policy and proposals | The DOL’s current guidance distinguishes the 2024 contractor rule, which remains relevant to private litigation, from the agency’s enforcement approach under Field Assistance Bulletin 2025-1. The February 2026 rulemaking is described as a proposal in the reviewed source. Do not treat that proposal or an enforcement policy as a blanket change to every worker’s legal status. | US Department of Labor | ||
| California generally starts with an employee presumption | Under California’s ABC test, the hiring business must establish all three conditions: freedom from its control and direction, work outside its usual business, and an independently established business of the same kind. Some occupations and contracting relationships use other tests or have additional conditions. Check the relevant exception before relying on it. | California Department of Industrial Relations | ||
| Do not assume a nationwide non-compete ban is in force | The FTC states that its non-compete rule is not in effect or enforceable; the agency moved to dismiss its appeals in September 2025. State restrictions still matter. Have the provider review any non-compete, non-solicitation or confidentiality clause for the worker’s location and role rather than copy a nationwide template. | Federal Trade Commission, current non-compete rule status | ||
| California restricts many stay-or-repay clauses | For contracts entered into from 1 January 2026, California Business and Professions Code section 16608 restricts employment terms requiring debt repayment or a penalty when employment ends. The law contains specific exceptions, including tightly conditioned arrangements for some transferable qualifications and upfront payments. Review training, signing-bonus and relocation clauses against the actual exception; neither a blanket repayment clause nor a blanket statement that every repayment agreement is banned is accurate. | California Legislature | US private-sector hiring; federal rules plus applicable state, local, sector and contract requirements. Reviewed 14 September 2026. | |
| Document how work rights reach your business | US copyright law treats qualifying work created by an employee within the scope of employment as work made for hire. Commissioned contractor work has narrower statutory categories and a signed-writing requirement. With an EOR, document the chain of rights from the employee and employing entity to your business, including any separate assignments. Do not assume paying the provider automatically transfers every right. | US Copyright Office, Works Made for Hire | ||
| An invention clause needs state limits | California protects certain inventions developed entirely on the employee’s own time without employer resources. The protection has exceptions for inventions related to the employer’s business or anticipated research, or resulting from the employee’s work. Use an assignment clause that respects the applicable state’s limits and identifies the EOR-to-client transfer. | California Legislature | ||
| Federal minimum wage: $7.25 per hour | The federal minimum is $7.25 per hour for covered nonexempt employees. Higher applicable state or local rates take priority. California’s general state minimum is $16.90 per hour from 1 January 2026, with higher rates for some locations and sectors. Check the actual workplace and occupation before setting pay. | US Department of Labor | ||
| Median gross earnings: $1,251 per week | The Bureau of Labor Statistics reported median usual weekly earnings of $1,251 for full-time wage and salary workers in the second quarter of 2026, before taxes and other deductions and without seasonal adjustment. This is a national median, not an average, a net salary or a quote for a particular role. Compare offers with current pay for the role and location. | US Bureau of Labor Statistics | BLS Current Population Survey, Q2 2026; released 21 July 2026. Nominal USD, not seasonally adjusted; full-time wage and salary workers, self-employed excluded. | |
| Pay frequency depends on the state and role | There is no single payroll cycle for every US employee. Set regular pay dates that meet the employee’s state requirements. California generally requires wages at least twice each calendar month on designated dates, with exceptions for certain employees and pay arrangements. Confirm payroll cutoffs, payslip details and final-pay deadlines with the EOR before the first payment. | California Department of Industrial Relations | ||
| Employer Social Security and Medicare are separate from the fee | For 2026, the employer generally pays Social Security tax at 6.2% on each employee’s covered wages up to $184,500, plus Medicare tax at 1.45% without that wage cap. These are employer payroll taxes. State unemployment, workers’ compensation, benefits and the EOR fee are separate costs, so 7.65% is not an all-inclusive US employment burden. | Internal Revenue Service | ||
| Employee payroll deductions are not a second employer charge | Employees generally have 6.2% Social Security tax withheld on covered wages up to the 2026 base of $184,500 and 1.45% Medicare tax on covered wages without that cap. Keep these employee deductions separate from the employer’s matching share when checking a payroll quote or calculating take-home pay. | Internal Revenue Service | ||
| Additional Medicare withholding has no employer match | Employers must begin withholding an extra 0.9% Medicare tax on wages they pay an employee above $200,000 in the calendar year, starting in the pay period that crosses the threshold. There is no employer share of this additional tax. The payroll withholding threshold is not the same as every employee’s final tax-liability threshold, which depends on filing circumstances. | Internal Revenue Service | ||
| FUTA applies to a limited annual wage base | Federal unemployment tax is generally 6% on the first $7,000 of covered wages per employee each year. A full 5.4-percentage-point state-tax credit reduces it to 0.6%, or $42 on that wage base, only when the credit conditions are met. Credit-reduction states and late or insufficient state payments can increase the amount. Do not apply FUTA to the employee’s whole annual salary. | Internal Revenue Service | ||
| State payroll taxes need their own calculation | Ask for the actual state unemployment rate, wage base and any disability, family-leave or local payroll charges. Separate employer costs from employee deductions. In California, unemployment insurance and employment training tax are generally employer contributions, while state disability insurance and personal income tax are withheld from employees. A national percentage cannot replace this state calculation. | California Employment Development Department | ||
| Federal income tax is progressive | For tax year 2026, federal individual income-tax rates range from 10% to 37%, with taxable-income bands depending on filing status. The standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. Payroll withholding depends on the employee’s information and applicable tables; state and local income taxes may also apply. Do not use one average income-tax rate to promise take-home pay. | Internal Revenue Service | ||
| The overtime deduction does not remove payroll taxes | Qualifying overtime compensation can receive a federal income-tax deduction under the 2025–2028 rules, subject to eligibility and limits. IRS payroll guidance still treats overtime as subject to Social Security, Medicare and FUTA taxes and generally to income-tax withholding. Do not advertise all overtime wages as tax-free or reduce employer payroll taxes because of the employee deduction. | Internal Revenue Service | ||
| An $80,000 salary needs a larger employment budget | For an illustrative full year of $80,000 in wages subject to ordinary federal payroll taxes, employer Social Security is $4,960 and employer Medicare is $1,160. Add $42 FUTA only if the full state-tax credit applies. That gives $86,162 before state unemployment, workers’ compensation, health and retirement benefits, provider fees, equipment, expenses and other costs. Employee tax deductions are withheld from gross pay and are not added a second time as employer costs. | Internal Revenue Service | ||
| Check ACA coverage and the actual health plan | The ACA employer shared-responsibility rules generally apply when an employer averaged at least 50 full-time employees, including full-time equivalents, in the previous calendar year. Related employers can be aggregated. An applicable large employer can face a payment if it fails to offer coverage to at least 95% of full-time employees and their dependents, or its offer fails the affordability and minimum-value rules, and a full-time employee receives a qualifying marketplace tax credit. Ask the EOR which plan covers the hire, the employee contribution, dependents, waiting period and coverage in the employee’s location. | Internal Revenue Service | ||
| Check state retirement access as well as optional benefits | A 401(k) plan or employer match is not a uniform requirement for every US private employer, but state retirement-access rules can apply. California’s CalSavers programme now covers eligible employers with one or more employees that do not offer a qualified plan and are not exempt. Its 1–4 employee registration deadline was 31 December 2025. CalSavers uses employee payroll deductions and does not require employer matching. | CalSavers, official employer programme | ||
| Confirm injury insurance for the actual work | Workers’ compensation for ordinary private employment is mainly administered through state systems, with separate federal schemes for specified workers. Ask the EOR to confirm the coverage, state, occupation and claims process for this employee. Do not treat a generic insurance line on a quote as proof that every workplace and activity is covered. | US Department of Labor | ||
| Federal overtime generally starts after 40 hours | Covered nonexempt employees generally receive at least 1.5 times their regular rate for hours over 40 in a workweek. The federal FLSA does not create a general eight-hour daily limit or daily overtime rule for adult employees. State rules, exemptions, sectors and contracts can change the calculation. Record actual hours, including work done remotely. | US Department of Labor | ||
| Salary alone does not make a role exempt | For the main federal executive, administrative and professional exemptions, the usual test requires qualifying duties, payment on a salary basis and at least $684 per week. The May 2026 amendment restored the pre-July-2024 regulatory text after the courts vacated the 2024 rule. Some occupations have different salary tests or exceptions. California’s corresponding 2026 salary floor is $70,304 annually, plus its duties requirements. | Federal Register / US Department of Labor, 15 May 2026 overtime amendment | Federal 2019 salary rules restored in CFR effective 15 May 2026; California 2026 general EAP salary threshold, duties and exceptions apply | |
| California also has daily overtime rules | For covered nonexempt California employees, the general rule pays 1.5 times the regular rate for more than eight and up to 12 hours in a day, more than 40 in a workweek, and the first eight hours on the seventh consecutive workday in a workweek. Double time generally applies after 12 hours in a day and after eight hours on that seventh day. Alternative workweek arrangements and other exceptions require separate checks. | California Department of Industrial Relations | ||
| Break rules differ between federal and state law | Under federal wage rules, short breaks of about 20 minutes or less count as paid work when provided. A genuine meal period, normally at least 30 minutes, can be unpaid only when the employee is fully relieved of duties. California generally requires paid ten-minute rest periods per four hours or major fraction and a 30-minute meal period when work exceeds five hours, subject to defined exceptions and waiver rules. | US Department of Labor | ||
| Promised bonuses can affect overtime | Define bonus eligibility, targets, payment dates and treatment on departure in the offer or plan. Under federal rules, many promised or formula-based bonuses enter the regular rate used to calculate overtime for nonexempt employees. A genuinely discretionary bonus has specific conditions; calling a payment discretionary does not make it so. There is no single bonus percentage that every US employer must pay. | US Department of Labor | ||
| Keep payroll and working-time evidence | For covered nonexempt workers, keep accurate records of hours, rates, gross pay, additions and deductions, pay dates and the periods covered. The FLSA generally requires payroll records for at least three years and supporting wage-calculation records for two years. Other laws can require longer retention. Agree how your team supplies the EOR with complete hours and corrections, including remote work. | US Department of Labor | ||
| Paid vacation depends on state rules and the offer | The federal FLSA does not require paid vacation for ordinary private employment. State or local paid-leave requirements, covered government contracts and employment terms can add rights. State clearly how many paid days the offer includes, how they accrue, how leave is booked, and what happens to unused leave. Do not confuse a voluntary vacation allowance with separate protected or statutory paid leave. | US Department of Labor | ||
| Federal holidays are not automatic private-sector paid days | The FLSA does not generally require ordinary private employers to pay for public holidays or give a premium just because work falls on a holiday. The company’s holiday policy, contract, collective agreement and any applicable government-contract rules can create additional rights. List the paid holidays in the offer and explain how holiday work interacts with overtime. | US Department of Labor | ||
| Check state and local sick-leave rights | There is no general FLSA requirement for paid sick leave in ordinary private employment, but state, local and some federal-contract rules can require it. In California, covered employees generally receive at least five days or 40 hours per year, whichever is greater. State eligibility includes working in California for the employer for at least 30 days in a year, with a 90-day employment waiting period before use; exceptions and more generous local rules need checking. | California Department of Industrial Relations | ||
| FMLA can provide unpaid protected family and medical leave | Eligible employees can take up to 12 workweeks of unpaid, job-protected FMLA leave for qualifying reasons, including their own serious health condition, specified family care, or bonding after birth, adoption or placement in foster care. Military caregiver leave can reach 26 workweeks in a single 12-month period. Private-employer coverage and employee eligibility require separate checks, including at least 50 employees for 20 workweeks in the current or previous calendar year, 12 months of service, 1,250 hours in the preceding year and 50 employees within 75 miles. | US Department of Labor | ||
| Do not count only your own EOR hires for FMLA | Jointly employed workers count for both employers under FMLA coverage and eligibility rules. The worksite is generally the primary employer’s office from which the worker is assigned or to which they report; a worker physically at the secondary employer’s facility for at least a year has a different worksite rule. Ask the EOR to calculate eligibility and assign notices, benefits continuation and reinstatement duties for the actual arrangement. | US Department of Labor | ||
| Washington expanded job protection in 2026 | From 1 January 2026, Washington Paid Leave job-restoration rules generally cover employees of employers with at least 25 employees when employment began at least 180 calendar days before leave. This protection is separate from eligibility for benefit payments. Covered employers also have health-coverage and notice duties. The employer-size threshold falls to 15 in 2027 and eight in 2028; do not use those future thresholds for 2026. | Washington Legislature, RCW 50A.35.010 | Washington RCW 50A.35.010: 2026 job-restoration threshold; further changes scheduled for 2027 and 2028 | |
| Pregnancy accommodations are separate from FMLA | The Pregnant Workers Fairness Act requires covered employers, generally including employers with at least 15 employees, to provide reasonable accommodations for a qualified worker’s known pregnancy, childbirth or related limitations unless there is undue hardship. An employer cannot force leave when another reasonable accommodation is available. Assess an accommodation request even when the worker does not qualify for FMLA. | Equal Employment Opportunity Commission, Pregnant Workers Fairness Act | ||
| Provide pumping breaks and a private space | Most employees covered by the federal PUMP Act have a right to reasonable breaks as needed to express breast milk for one year after birth, and a functional private space that is not a bathroom and is protected from intrusion. State law can provide more. Have the EOR and your workplace team agree how the employee can use this right at the actual worksite. | US Department of Labor | ||
| Check the reason, contract and layoff notice rules | There is no single statutory notice period for every US dismissal. At-will limits, state law, contracts, collective agreements and protected leave all matter. Federal WARN can require 60 days’ written notice for qualifying plant closings and mass layoffs by covered employers, while state laws can go further. Send the proposed exit to the EOR before announcing a last day. | USAGov, termination guidance for employers | ||
| Assess related layoffs together | Federal WARN generally covers businesses with 100 or more employees under its counting rules. A covered site closing can trigger notice at 50 employment losses; a mass layoff generally triggers it at 500 losses, or at 50–499 losses when at least 33% of the active workforce is affected. The law has detailed 30-day and 90-day aggregation, site, part-time and exception rules. Check planned reductions together instead of treating each EOR termination as an isolated event. | US Department of Labor | ||
| Some state layoffs require severance | The FLSA does not generally require severance, but state law and agreed terms can. For qualifying New Jersey WARN events, the state requires one week of pay for each full year of service and an additional four weeks when the required 90 days’ notice is not given. Coverage, establishment and event thresholds apply; this is not a payment owed on every individual termination. | New Jersey Department of Labor and Workforce Development, WARN comparison | ||
| Prepare final payroll before ending employment | Final-pay deadlines depend on the state and the type of departure. In California, discharged employees generally receive earned wages and accrued vacation immediately. An employee who quits without a fixed-term contract generally receives final pay on departure if they gave at least 72 hours’ notice, or within 72 hours if they did not. Defined exceptions apply. Ask the EOR to calculate wages, leave, commissions and other sums before confirming the final day. | California Department of Industrial Relations | ||
| Final-pay rules differ across states | New Hampshire generally requires payment within 72 hours after discharge. A resignation is normally paid on the next regular payday, but at least one pay period’s notice can bring it within the 72-hour rule; layoffs and work-dispute suspensions have separate treatment. South Carolina permits payment within 48 hours or by the next regular payday, which cannot be more than 30 days after separation. Do not copy one state’s deadline into every exit process. | New Hampshire General Court, RSA 275:44 | ||
| Explain health continuation when employment ends | Check whether the health plan and qualifying event are subject to COBRA or state continuation rules. DOL guidance describes at least 60 days to elect COBRA from the later of the coverage loss or election notice. Coverage commonly lasts 18 months and can be longer for specified events; the former employee usually pays the full premium. Have the provider deliver the applicable notices and explain the actual cost. | US Department of Labor | ||
| Complete Form I-9 for the hire | The employee must complete and sign Form I-9 Section 1 no later than the first day of work for pay, after accepting the offer. The employer generally completes Section 2 within three business days of that start; a job lasting less than three days requires completion on the first day. Let the employee choose acceptable documents. Remote document examination is available only under the authorised procedure and its conditions. | US Citizenship and Immigration Services | ||
| H-1B sponsorship depends on the role and arrangement | An H-1B case requires a qualifying specialty occupation and candidate, an appropriate labour condition application, and a petition by an eligible employer or agent. USCIS expressly addresses work staffed to a third-party client. That does not make every EOR able to sponsor every hire. Ask who petitions, how the client role and worksite are documented, whether the cap applies and when the employee can lawfully start. | US Citizenship and Immigration Services | ||
| L-1 and O-1 are not interchangeable EOR routes | L-1A generally requires a qualifying relationship between US and foreign organisations and at least one continuous year of qualifying overseas employment within the preceding three years. An unrelated EOR does not create that corporate relationship. O-1 has separate extraordinary-ability requirements and can involve a US employer or agent. Have the provider assess the person, role and petitioner before promising either route. | US Citizenship and Immigration Services | ||
| Check current filing requirements before making a visa promise | USCIS’s reviewed H-1B page reports recent court decisions and September 2026 fee-rule changes. Older explanatory text can remain below a newer alert. Confirm the current filing fee, cap position, petition evidence and work-authorisation start conditions for the specific case. A provider’s onboarding estimate is not a visa approval or a universal immigration timetable. | US Citizenship and Immigration Services | ||
| Remote work still needs employment and immigration checks | Record the approved work location, hours, equipment, expense arrangements and permission required before the employee moves. Remote work does not remove wage-recordkeeping or state payroll obligations. Someone working in the US also needs the appropriate right to work; an EOR contract or a description such as digital nomad does not provide immigration permission by itself. | US Department of Labor | ||
| Apply discrimination rules throughout employment | Federal EEOC protections cover hiring, pay, promotion, harassment, benefits and dismissal. Most covered employers have at least 15 employees, while federal age-discrimination coverage generally starts at 20; employment agencies and unions also have duties. State and local protections can apply at lower thresholds. Agree how the EOR and your team receive, investigate and respond to concerns. | Equal Employment Opportunity Commission, coverage overview | ||
| Include employee data in privacy checks | Agree which employee and applicant data the EOR and client collect, who can access it, how long it is kept and how requests are handled. California privacy requirements can cover job applicants and employees of businesses subject to the CCPA. The state regulator’s 2025 enforcement action addressed missing applicant notices and inadequate protections in data-sharing contracts. Do not assume employment data is exempt from privacy requirements. | California Privacy Protection Agency, job-applicant privacy enforcement | ||
| Preserve protected discussions and group concerns | Workers covered by the National Labor Relations Act can act together about wages, hours and other working conditions, including discussing pay and raising group concerns. Protection can apply without a union. Have confidentiality, social-media and conduct clauses reviewed so they do not unlawfully restrict protected activity. The EOR arrangement does not make these workplace discussions a disciplinary offence. | National Labor Relations Board, protected concerted activity | ||
| California added a recurring rights notice in 2026 | California’s Workplace Know Your Rights Act requires the applicable annual employee notice, first due by 1 February 2026, with language requirements. Employers must also give employees an opportunity to designate an emergency contact for specified arrest or detention situations. Ask the EOR how it delivers the required notices and keeps the relevant contact information current. | California Department of Industrial Relations | ||
| Review AI used in recruitment and employment | Check which automated tools influence candidate screening, hiring, promotion or discipline, and who is responsible for their use. Illinois Public Act 103-0804 took effect on 1 January 2026, addressing discriminatory uses of AI in employment and introducing notice requirements. Its detailed implementation needs a current state check; a proposed rule is not a final requirement. Existing discrimination duties also apply when a vendor supplies the tool. | Illinois Department of Human Rights: FY2024 annual report, law effective January 2026 | ||
| Source checks and legal review dates are different | We check selected sources monthly and review relevant changes before updating the guide. Each fact note records its source, review date and applicable period. A successful page fetch does not verify a legal claim. A 2026 wage base, a quarterly earnings release and an older statute can all have the same review date while describing different periods. | Federal Register / US Department of Labor, 15 May 2026 overtime amendment |