U.S. Compensation/BenefitsReading Time: 2 minutes
If you’re hiring employees in the United States, you’ll need to make sure you’re staying up to date with all the federal and state requirements for compensation and benefits. On a surface level, the U.S. doesn’t have many laws regarding compensation and benefits for employees — but if you want your company to be able to compete with other employers, you’ll still need to offer certain benefits. Globalization Partners can help you navigate the written and unwritten rules when it comes to U.S. benefits and compensation.
U.S. Compensation Laws
Many aspects of compensation are determined at the state level in the U.S. Still, some federal standards apply to the country as a whole. One of these standards is the Fair Labor Standards Act (FLSA), which outlines requirements for minimum wages, overtime pay, equal pay, and record-keeping. Under the FLSA, employers must adhere to the following guidelines:
- All employees are entitled to a minimum wage of $7.25 per hour. In many states, the minimum is higher than the federal rate.
- With a few exceptions, employees must be paid 150% of their regular pay for all hours worked in excess of a standard 40-hour workweek.
- Employers must keep a record of employees’ wage and hour information, including their regular hourly rate and total wages per pay period.
What Benefits Are Guaranteed in the United States?
In the United States, employees are not guaranteed any benefits. However, most companies provide benefits packages as incentives to work with them. Most benefits packages in the U.S. include:
- Paid time off in the form of vacation and sick days
- Medical, dental, and vision insurance plans
- Retirement benefit plans, such as a pension or 401(k)
Some companies go even further, providing additional benefits such as relocation assistance and child care benefits. Companies in highly competitive industries often offer more benefits as a way to attract top talent.
U.S. Benefits Management and Disbursement
As an employer, you’re responsible for disbursing any locally required benefits and upholding the terms you set forth in your employment offer. However, performing U.S. benefit management duties can be challenging when you’re living and working in another country. You may find yourself traveling to the United States on a regular basis or hiring a locally based attorney who understands employment laws and regulations in the U.S.
Restrictions for Benefits and Compensation in the U.S.
U.S. compensation laws can vary from state to state. There are 50 states in the U.S., and they each have their own set of regulations and expectations when it comes to employment. Before you start hiring in any state, you should read up on its requirements and restrictions regarding benefits and compensation.
The Advantages of Outsourcing U.S. Benefits
When you’re expanding operations in an unfamiliar country, you have to consider a range of factors. Outsourcing benefits and compensation can take a significant burden off your shoulders.
When you choose to work with Globalization Partners as you expand in the U.S., we’ll manage benefits and compensation along with all of the associated compliance risks. Get in touch with us today to learn more.