Employer of Record (EOR) in the USA
An Employer of Record in the US specializes in legally recruiting talent for a business that does not have an entity in a particular state. It assumes employer obligations and manages their talent’s onboarding, payroll, HR, and benefits, while the employer maintains control over the day-to-day tasks of the hired staff. From SDRs and human resource managers to content creators and software developers, EORs can legally hire professionals for any department and ensure compliance with Federal and State labor laws and regulations.
Global Squirrels is a US Employer of Record that offers both recruitment and payrolling through its all-in-one platform. It manages the entire staffing process, including sourcing profiles, scheduling interviews, and onboarding, and also handles compliance, HR, payroll, and benefits administration. Global Squirrels offers two plans (Orange and Purple) that suit the job requirements of businesses.
Our staffing and payrolling platform charges only the payroll cost and a flat fee per hire. It also provides pricing transparency, allowing you to view hiring costs upfront, along with the candidate’s resume and cover letter, on the portal.
Global Squirrels also operates as a Professional Employer Organization (PEO) in the United States, enabling compliant staffing of talent without the need to set up an entity.
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Employees
This platform worked out well for us. Instead of working with agencies we were able to hire resources from Philippines on a long term basis. We are currently paying payroll cost and monthly license fee per employee. The value we seen with this company is they were able to source us curated profiles based on our job needed and pricing is great compared to other EOR platforms.
How it works?
1. Legally hires talent
Global Squirrels' EOR entity in the US employs talent compliantly and protects businesses from any risks.
2. Manages payroll and tax
Our platform will handle payroll, tax withholding, and tax remittance to the respective authorities.
3. Ensures compliance with US labor laws
Irrespective of the state, we ensure compliance with Federal and State laws.
4. Handles benefits administration
As we assume legal responsibility, every employee shall receive the Government-mandated benefits.
Global Squirrels is one of the best EOR service providers in the United States. Hire top talent without employer obligations.
Benefits
- Saves costs and time: With an EOR, you do not need to spend thousands of dollars and months to establish an entity in another state.
- Simplified compliance: An EOR hires talent while adhering to the US labor laws and tax regulations, ensuring zero risk to the business.
- Fast staffing: Significantly reduce your time-to-hire. We will source candidates and share curated profiles with you on the portal. Simply review and share your feedback.
- Focus on growth: Global Squirrels will undertake the HR and administrative tasks so you can focus entirely on growing your business.
Expand your teams with our Employer of Record services in the US.
Table of Contents
Worker classification in the USA
Global Squirrels is a staffing and EOR/payrolling software through which you can hire, pay, and manage talent across the US without having to set up a business entity. Our Employer of Record in the US adheres to the laws and regulations while hiring professionals for you based on your job requirements. You can leverage our EOR company to find new candidates or onboard your self-sourced experts for any department or role, such as SDR, graphic designers, marketing manager, software engineers/developer, and more. Our US Employer of Record offers dedicated plans that can cater to your job needs. When you choose the Orange Plan, the platform will source and hire talent based on your job vacancy and also manage their Agent of Record (AOR) / EOR. The Purple Plan is suitable for onboarding the candidates you’ve already sourced. This plan will also handle HR and administration tasks, including offer letter generation/negotiation, payroll and payments, legal compliance, and benefit administration.
Connect with qualified US talent, hassle-free, through our Employer of Record in the US. Global Squirrels manages your payments and compliance for all workers (employees & contractors).
Employee classification will define how the employment engagement is structured. With the ongoing shifts in the workforce, staffing agencies and recruiting firms in the US face an issue with classification as they navigate possible expansion into new areas or streamlining their services. Clients tend to prefer independent contractors since they can be more efficient in operations, budget, or both. Candidates for placement might have questions around classification as an employee versus an independent contractor if they are currently freelancing. Regardless of client or candidate preferences, there are some clear divisions in worker classifications that are important for every company to pay attention to. The risk of misclassification could result in hefty fines, fees, and back taxes for the employer. Hence, multiple businesses choose to work with an employer of record in the USA to avoid misclassifying workers.
There are seven employee classifications that are recognized in labor regulations. They are:
Full-time employee
A full-time employee is someone who will work the standard 40 hours per week on a regular and ongoing basis. These employees are usually eligible for full company benefits, which include health insurance, paid time off, and retirement plans. They tend to form the core workforce and will usually occupy permanent positions in the company.
Part-time employee
Part-time employees work fewer hours than full-time employees. This is usually more than 20 hours but less than 40 hours every week. They often have flexible schedules and may or may not receive company benefits depending on organizational policies and local labor laws.
Contract employee
Contract employees are hired for a certain project, time period, or role as defined by a contract-based agreement. The contract will clearly outline the duration, scope of work, payment terms, and end date. Once the contract expires, the employment relationship will conclude unless extended or renewed.
Independent contractor or freelancer
Independent contractors or freelancers are self-employed talents who provide specialized services to a company. They are usually not considered company employees and are responsible for managing their own taxes, insurance, and business expenses. Since definitions and regulations might vary by state, it is important to classify these workers correctly to avoid legal and tax-related repercussions. Misclassifying employees as independent contractors could result in penalties and fines.
Temporary employee
Temporary employees are hired for a short-term duration, usually not exceeding 90 days. Their employment might be either full-time or part-time, depending on the company’s immediate staffing needs. Temporary employees often fill in for permanent staff on leave or assist with seasonal workloads.
On-call employee
On-call employees are not scheduled for regular working hours but are available to work as required. They are contacted by the company when additional labor is required. Businesses are required to reevaluate the necessity and classify these employees every 180 days to ensure compliance and fairness.
Interns or volunteers
Volunteers and interns are usually employed for a fixed period, such as a semester or a training cycle. They might not always receive compensation in the traditional sense, but will gain professional experience or academic credit. These roles carry a special status designation due to their limited duration and purpose.
Exempt vs non-exempt employees
In addition to employment type, every role should be classified as either exempt or non-exempt under labor laws.
Exempt employees
These employees are usually paid a fixed salary regardless of the number of hours worked. They are not eligible for overtime pay. The examples include senior executives, managers, and specialized professionals, like a vice president of marketing or a product designer in a creative department. Exemot employees are expected to fulfill their responsibilities without tracking daily working hours.
Non-exempt employees
Non-exempt employees are paid on an hourly basis and are entitled to overtime pay for hours worked beyond 40 in a week. This was laid down by the Fair Labor Standards Act in the U.S. Roles like healthcare aides, administrative assistants, or technicians will fall under this category. However, certain hourly workers can still be classified as exempt if they receive a guaranteed salary and meet certain job duty criteria under labor law.
What is the ABC test?
The ABC test is a legal standard that is used in the United States to determine if a worker should be classified as an employee or an independent contractor. It is designed to prevent worker misclassification, which ensures that companies don’t improperly label employees and contractors to avoid paying taxes or benefits.
The three conditions of the ABC test include:
To classify someone as an independent contractor, a business should prove that all three of the following conditions are true:
Part | Condition | Meaning |
A | The worker is free from the control and direction of the hiring entity in connection with the performance of the work. | The business cannot dictate how, when, or where the work is done. |
B | The worker performs work that is outside the usual course of the hiring entity’s business. | The work being done is not part of the company’s core services or products. |
C | The worker is usually engaged in an independently established trade, occupation, or business of the same nature as the work performed. | The worker runs their own business or offers similar services to other clients. |
The ABC test is widely used in multiple U.S. states, especially California, Massachusetts, and New Jersey, and will serve as a model for other states to prevent misclassification in the contingent economy. Working with an employer of record service in the USA will allow businesses to comply with worker classification requirements.
What are the consequences of misclassifying employees?
Employee misclassification will lead to a substantial loss of tax revenue. For this reason, governments around the world have cracked down on this issue by tightening guidelines, closing loopholes, and increasing penalties. The growing contingent worker landscape and the rising use of contractors have made this an even more pressing issue, especially for businesses that are partnering with a US employer of record to manage compliance, payroll, and worker classification across multiple employment types:
Financial and operational impacts
In most countries, there are fines for misclassifying employees as independent contractors. In the US, the fines are as follows:
- $50 for every W-2 form that the company should have filed but hasn’t
- Up to 100% of the misclassified employee’s FICA taxes
- Up to 3% of the misclassified employee’s wages
Companies that misclassify their employees usually also have to pay those employees back wages and benefits, which are equivalent to the amount they would have earned had they been properly classified. They also have to pay back taxes they should have paid to the relevant tax authority. These costs can add up quickly, especially if you have been misclassifying employees over a long period.
Legal consequences
Misclassifying employees can result in major penalties, which could be up to $1000 per misclassified employee in the US. Business executives who willfully misclassify workers in order to evade paying taxes may even be imprisoned in extreme circumstances.
Other possible consequences of misclassifying employees include class action lawsuits from misclassified workers seeking damages, and additional wage claim audits looking for further irregularities. Both of these have the potential to seriously harm a company.
Varied effect on the business
Serious financial and legal repercussions may result from misclassifying employees, but the consequences don’t stop there. Simply put, it is not a good impression for a business to misclassify employees. People may decide they don’t want to work for you if news gets out. They may even advise their networks and friends to stay away from you. In addition to seriously harming your employer brand, this poor press may potentially affect your earnings if clients decide to do business with someone else.
Employment agreements/contracts in the USA
Global Squirrels ensures the contracts/offer letters comply with local laws for your hired staff in the USA. Want to see our US Employer of Record in action?
Employment agreements in the US serve as formal documents that outline the terms and conditions for the working relationship between an employer and an employee. These establish mutual rights, responsibilities, and expectations which ensure both parties understand the scope of employment from the beginning. By clearly defining these terms, employment agreements help prevent misunderstandings, reduce legal risks, and promote transparency throughout the employment lifecycle. Some of the common employment contracts in the US are:
Permanent employment contract
Permanent employee contracts are the most common type of employment contract in the United States and include around 60% of the workforce. They are also used for ongoing, continuous employment unless the employer or employee decides to terminate the contract. These contracts can be used for salaried, hourly, part-time, or full-time employees. Most contracts within the US allow either party to terminate the employment relationship for any reason, with or without any notice.
Part-time employment contract
A part-time employment contract is a type of permanent or fixed-term employment contract that is used for employees scheduled to work fewer hours a week than what is considered a full-time employee. Most companies consider less than 30 hours every week, on average, to be part-time. Working hours can vary every week.
Fixed-term employment contract
Contrary to permanent contracts, fixed-term employment contracts tend to have a fixed end date or conclude based on the completion of a project. In other words, fixed-term contracts should include the duration of employment. Typical uses of this contract will include seasonal business needs, which cover parental leave or specific project work. Employees with fixed-term contracts tend to have similar conditions, wages, and policies as permanent employees. Organizations might choose to renew, terminate, or extend the contract once it expires.
Temporary employment contract
A temporary employment contract is used for the purpose of filling a role. These contracts are short-term in nature and have a specific end date. They exist between a company and an individual, or a staffing or employment agency on behalf of an individual. Temporary employment contracts will differ from fixed-term contracts because of their short-term nature. Although both have a duration limit, fixed-term contracts can still be long-term. Temporary contracts usually do not require notice to terminate the contract on either side.
Unlike part-time or fixed-term contracts, temporary employee contracts do not include benefits as part of the work agreement.
1099 employment contract
A 1099 employment contract is a signed legal agreement between the independent contractor and the company that hires them for work. However, they are not considered employees in the job market. This type of contract is also referred to as “1099 Agreement”, “Independent Contractor Agreement,” or “Freelance Employment Contract.” 1099 employment contracts will differ from other work contracts since the contractor is not an employee of the company, and it acts simply as an agreement of work. This means the contractor has control over how the work will be done. There are no limits to the duration or number of hours within the contract.
The 1099 contracts should describe the non-employee relationship, ownership of work, scope of work, timelines, payment, conditions and terms of agreements, confidentiality, liability and insurance, and termination notice.
Casual employment contract
A casual worker is a less common form of employment in the US. It is someone who works on a requirement basis. This type of employment arrangement is also called flexible work. A casual employment contract is an employment contract without a guarantee of hours or intention of full-time employment, and the employee is not obligated to accept the work once assigned. Casual employment contracts are different from part-time employment contracts since the workers are not considered regular employees and do not receive associated benefits. Unlike temporary contracts, casual employees are paid and hired directly by the employer without third-party involvement.
Remote work agreement
Remote work agreements are now frequently included as an annex to employment contracts due to the increasing popularity of remote work. Remote work agreements, a type of flexible work arrangement, outline an employee’s freedom to work from a location other than their employer’s workplace. The employee is not required to live close to the employer’s workplace, nor is it expected that they will be present there regularly.
Important components of an employment contract in the USA
Job title and responsibilities | A clear job overview should outline the full scope of the role, which details the position, who the employee reports to, and how the work is performed. It should also include the job’s general duties, responsibilities, performance expectations, and title. It should also specify the key logistical details such as work schedule, location, and the number of hours required every week. |
Working hours | In the US, standard working hours will typically follow a 40-hour workweek, which is usually spread across five days with an 8-hour workday. However, the actual schedule can vary significantly depending on the industry, role, and employment type. |
Overtime | As per the Fair Labor Standards Act, non-exempt employees are eligible for overtime pay at 1.5 times their regular hourly rate for every hour worked beyond 40 in a given week. Exempt employees, such as those in managerial or professional roles, are not eligible for overtime pay but are expected to complete their duties within reasonable working hours. |
Probation period | All new employees in the US are subject to a probationary period from the date of hire. It is usually for 90 days, and the company reserves the right to extend ot terminate employment at any time during the probationary period without notice or severance pay. |
Anti-discrimination laws | The contract should clearly state that the employer prohibits discrimination or harassment based on race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability, genetic information, or veteran status, as mandated by the Equal Employment Opportunity Commission (EEOC) under laws such as the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA). |
Health and Safety Act | This section should specify the company’s obligation to provide a workspace that is free from recognized hazards and to ensure that all employees receive proper safety training and access to necessary protective equipment. The clause may also detail employee responsibilities, such as following safety protocols, reporting unsafe conditions, and participating in safety programs or drills. |
Notice period | When resigning from employment, the employees are expected to provide a minimum notice period of two weeks in writing. In managerial or senior roles, the notice period might extend up to 30 days, depending on the contract. The company reserves the right to either waive the notice period or provide payment in lieu of notice. |
Intellectual Property (IP) | All intellectual property, inventions, designs, software code, creative materials, or other work products developed by employees during their employment and within the scope of their duties remain the sole property of the company. Employees are prohibited from using, disclosing, or distributing any proprietary information or IP without prior written authorization. |
Dispute resolution | In the event of a disagreement or dispute, employees should first raise the concern with their immediate supervisor. If unresolved, the issue can be escalated to Human Resources or higher management. If an internal resolution cannot be reached, disputes may be handled through mediation or arbitration, as outlined in the company’s dispute resolution policy. |
Post-employment (Post-termination) | Upon termination or resignation, employees are required to return all company property, including laptops, access cards, and confidential documents. They are also expected to comply with non-disclosure, non-compete, and confidentiality agreements signed during employment. |
Payroll in the USA
Our EOR in the USA handles payroll, taxes, and ensures legal compliance for your employees, contractors, and freelancers.
Payroll is the total compensation that a company is obliged to pay to its employees for their services. Companies might offer weekly pay, biweekly pay, or monthly pay. This depends on their business payroll policy. Payroll will include salaries, deductions, wages, bonuses, and net pay. Multiple companies have an accounting department that will handle the payroll process. However, another option is to work with an employer of record in the United States. The types of payroll deductions include:
Federal Insurance Contribution Act (FICA)
This act is basically the center of the payroll tax. It is divided into two federal programs, which are funded by Social Security and medicare taxes. As a general rule, an employee should pay 7.65% towards the FICA tax.
Social security
Social security employee tax is paid by the employee and the employer. The money paid into this goes into two different trust funds, which are the Old-Age and Survivors Insurance Trust Fund and the Disability Insurance Trust Fund. The first is for retirement and survivor benefits, while the other is for disability benefits. It will act like a safety net for the retired and disabled.
Medicare insurance
Tax for medical care is paid by both the employee and the employer. Medicare withholding also goes into two separate trust funds, the Hospital Insurance Trust Fund and the Supplementary Medical Insurance Trust Fund. This is primarily used to help with medical fees workers may need to pay throughout their lives.
The State Unemployment Tax Act (SUTA)
SUTA tax is a federal payroll tax, which is also known as State Unemployment Insurance in some states. This act was established to offer unemployment benefits to displaced workers. In most states in the US, it is funded by the employers. However, SUTA rates vary between states.
The Federal Unemployment Tax Act (FUTA)
FUTA is the federal withholding tax that provides payments of compensation to workers who have lost their jobs. This is conducted at a federal level, as opposed to the state level of SUTA. Employers pay both federal and state unemployment taxes.
Local taxes
Local payroll withholding might be taken by different cities and municipalities. These taxes are usually paid by both the employee and employer and can vary in rates based on location. These are used to pay for local maintenance and improvements.
Employee benefits in the USA
As your Employer of Record in the USA, Global Squirrels will provide your hired staff with the benefits mandated by law.
Mandatory Benefits (Required by Federal/State Law)
Social Security and Medicare (FICA)
United States law provides for retirement benefits and subsidized health insurance under the Federal Social Security and Medicare programs. Employers are required to contribute 6.2% of every employee’s salary to Social Security, including 1.45% of every employee’s salary to Medicare. Equal contributions are deducted from each employee’s wages and act as an “employee contribution.” These federal programs provide benefits for retirees, the disabled, and children of deceased workers. Social Security benefits include old-age, survivors, and disability insurance. Medicare provides hospital insurance benefits.
Unemployment insurance (FUTA/SUTA)
The Federal Unemployment Tax Act (FUTA) and corresponding State Unemployment Tax Acts (SUTA) provide income support to eligible employees who end up losing a job through no fault of their own. Employers in this case are required to pay federal and state unemployment taxes to fund these programs. When a worker is laid off or terminated under qualifying conditions, they can receive temporary weekly unemployment benefits, which will help them manage financial needs while also seeking new employment. Each state administers its own unemployment insurance program, determining eligibility, benefit duration, and payment amounts. Employers must stay compliant with both FUTA and SUTA reporting and payment requirements to avoid penalties.
Workers’ Compensation Insurance
Workers’ compensation insurance is a mandatory benefit designed to protect both employees and employers when a workplace injury or illness occurs. It will provide employees with medical coverage, rehabilitation support, and wage replacement for injuries sustained on the job, regardless of fault. In return, employees typically waive the right to sue their employer for negligence. Employers must carry this insurance as required by state law, and failure to do so can result in significant fines and liability exposure.
Family and Medical Leave Act (FMLA)
The Family and Medical Leave Act (FMLA) will give eligible employees the right to take up to 12 weeks of unpaid, job-protected leave in a 12-month period for certain family and medical reasons. These will include the birth or adoption of a child, caring for a seriously ill family member, or dealing with a personal health condition that can prevent the employee from performing their job duties. During FMLA leave, the employer must maintain the employee’s group health insurance under the same terms as if the employee were actively working. Employers covered under FMLA include public agencies and private companies with 50 or more employees within a 75-mile radius.
Health insurance
Health insurance is one of the most valued employee health benefits in the U.S. and is usually provided as part of a compensation package. Under the Affordable Care Act (ACA), employers with 50 or more full-time employees are required to offer minimum essential health coverage or face potential penalties. Employer-sponsored health insurance typically covers medical, dental, and vision care, and may include additional options such as mental health support, prescription drug coverage, and wellness programs.
Highly Valued Voluntary Benefits
Health and financial security
This includes coverage and saving options that protect against unexpected medical costs, income disruptions, and future financial challenges. Employers will offer a mix of healthcare support and financial safety programs such as supplemental health plans, life insurance, and savings options, which help employees reduce stress and maintain long-term stability.
Health insurance (medical coverage)
Even beyond employer-mandated health insurance, multiple companies will offer enhanced or supplemental medical plans, which allow employees to choose additional coverage based on personal or family needs. This can include expanded hospital coverage, wellness programs, mental health support, telemedicine access, and important illness plans.
Retirement savings plans (e.g., 401(k))
A 401(k) retirement savings plan is one of the most valued voluntary benefits in the U.S. It allows employees to contribute a portion of their pre-tax income to a long-term investment account for retirement. Many employers also match employee contributions up to a certain percentage, encouraging long-term savings and financial planning. These plans often include investment options such as mutual funds or target-date funds, helping employees grow their savings with tax advantages.
Dental insurance
Dental insurance is another popular voluntary benefit, covering preventive care and treatment such as cleanings, X-rays, fillings, root canals, and orthodontic services. Regular dental care not only supports oral health but also contributes to overall wellness. Employers that include dental plans, whether basic or comprehensive, will help employees avoid costly dental expenses and maintain long-term health.
Disability insurance (short-term and long-term)
Disability insurance provides income protection if an employee becomes unable to work due to illness, injury, or disability.
- Short-Term Disability (STD) covers a portion of lost wages for a temporary period, often between 3 to 6 months, during recovery.
- Long-Term Disability (LTD) begins after the short-term coverage ends and can last for several years or until retirement, depending on the policy.
These plans are essential for financial security, ensuring that employees can manage expenses even when unable to work. Employers offering disability insurance demonstrate a strong commitment to their workforce’s financial stability and well-being.
Miscellaneous benefits
Work-life balance and flexibility
Promoting a healthy work-life balance is an important aspect for U.S. employers. Companies increasingly provide policies that allow employees to manage both personal and professional responsibilities effectively. These might include flexible scheduling, hybrid work options, mental health days, or wellness programs.
Paid Time Off (PTO) / paid vacation and sick time
Paid Time Off (PTO) combines vacation, sick leave, and personal days into a single pool of paid leave, which employees can use at their will. Alternatively, certain organizations separate these into categories such as paid vacation and paid sick days. PTO policies vary by employer, but usually accrue based on length of service. Providing paid leave will ensure employees can rest, recover from illness, or attend to personal matters without any financial loss.
Paid holidays
The majority of American firms provide a certain number of paid public holidays annually, enabling workers to take time off to celebrate cultural or national holidays. New Year’s Day, Independence Day, Labor Day, Thanksgiving, and Christmas Day are examples of common paid holidays. In an effort to foster inclusion and respect for people from different backgrounds, several companies also offer floating holidays that staff members can utilize for any religious or cultural celebration.
Flexible work hours / flexible schedules
As long as they finish the necessary work hours or deliverables, employees with flexible work schedules can change their start and end timings within predetermined bounds. Flextime, shortened workweeks, and modified shifts are a few examples. This flexibility promotes employee autonomy and accountability while accommodating personal responsibilities like childcare, schooling, or preferred modes of transportation.
Remote or hybrid work options
In the United States, remote and hybrid work are becoming more and more prevalent due to the growth of digital collaboration technologies. Nowadays, a lot of companies provide hybrid work arrangements, in which workers work part-time from home and part-time from the office, or entirely remote positions. These choices not only promote work-life balance but also lessen the stress associated with commuting, increase the pool of candidates for employment, and raise employee satisfaction. Businesses that accept remote flexibility frequently see increases in productivity and employee retention.
Paid Parental Leave (Beyond FMLA)
While the Family and Medical Leave Act (FMLA) guarantees 12 weeks of unpaid leave, many employers voluntarily offer paid parental leave to support new parents. This benefit allows employees to take paid time off for childbirth, adoption, or fostering a child. Paid parental leave policies typically range from 4 to 16 weeks and may apply to both mothers and fathers. Offering paid parental leave promotes family well-being, strengthens employee loyalty, and aligns with inclusive workplace practices.
Leave policy in the USA
Leverage our EOR platform’s built-in tools to manage and track your staff’s leaves. Track everything from leave balance, leave application, and approval to public holidays.
In the United States, employers provide multiple types of leave to support the employee’s personal, medical, and professional needs while also maintaining a fair and productive work environment. Leave policies are designed to balance business continuity with employee well-being, which ensures that workers can take time off for health, family, or personal reasons without fear of losing their job or benefits. The types of leave in the United States are:
Family leave
Family leave in the United States is regulated under FMLA. Unlike many jurisdictions, US-based employees are not generally entitled to paid family leave. Special exceptions and rules do apply, which include:
- Being employed for at least the previous 12 months
- Having at least 1,250 hours of work over the previous 12 months
- Working from a location where an employer of 50+ employees is within 75 miles
- Working for a public agency, or a public or private elementary or secondary school
FMLA also specifies which cases or situations the employees are entitled to up to 12 weeks of unpaid leave per year, including:
- Giving birth to or caring for an infant
- Caring for an adopted or in-foster-care child
- Caring for an immediate family member suffering from a serious medical condition
- Being unable to perform duties because of a serious medical condition
Maternity leave
Maternity leave in the United States does not exist as per any law. Instead, only eligible federal employees are entitled to up to 12 weeks of paid leave under Title 5 of the Federal Employee Paid Leave Act (FEPLA), which is a major departure from unpaid leave under FMLA.
Granting paid or unpaid maternity leave to employees and contractors in different US states is state-specific and is subject to contractual agreements between employers and employees.
Examples of maternity leave (also generally known as “family leave”) in some US states include:
- New York: 12 weeks of paid leave at 67% of base salary
- California: eight weeks of paid leave at 60%-70% of base salary
- Louisiana: 12 weeks of unpaid leave at 100% of base salary
- Montana: determined on a case-by-case basis
- Kansas: six weeks of paid leave at 100% of base salary
In addition to local customs and labor practices, maternity (family) leave policies in the US are obviously governed by state laws and regulations. For many employers, this might be too much to handle.
Medical leave
Similar to maternity, paternity, and parental breaks, medical leave in the US is governed by the FMLA, and as such, employees who wish to take medical leave must meet the same conditions.
Interestingly, sick leave is not mandated by federal law in the United States. Furthermore, there are differences in leave policies by state because different states have the authority to grant sick leave to their employees.
Jury duty leave
The United States has a jury system in which district courts randomly call chosen, registered voters to serve as jurors. The fundamental justification for this kind of selection is to guarantee that the justice process is carried out with the greatest possible representation of every individual in a particular community.
Accordingly, a selected juror may be entitled to jury duty leave in the United States. However, in legal terms, FLSA does not demand reimbursement for time not worked, including jury duty leave. Employers and employees must instead agree on a jury duty leave. However, in certain states, workers are authorized to leave for jury service.
Military leave
The FMLA governs military leave in the United States. To address the unique needs of service members and their families, however, Military Family Leave provisions were introduced to the FMLA in 2008.
Secure the highly skilled professionals you need. Global Squirrels acts as your Employer of Record in the USA taking on all complex local payroll processing, tax compliance, and legal onboarding, so you can expand without the burden of entity establishment.