Country-Specific Compliance: Hiring in the US

Hiring in the US offers businesses access to one of the most diverse and skilled labor markets in the world. But this opportunity comes with a complex maze of federal, state, and local employment laws. From anti-discrimination statutes and wage regulations to classification and benefits compliance, failing to follow the right hiring practices in the US can result in costly penalties and lawsuits.

Whether you're a global company expanding into the US or a startup hiring your first American employee, understanding and aligning with US hiring compliance is not optional—it’s essential.

In this blog, we’ll break down key compliance areas to consider when hiring in the US and show you how Riemote can simplify the process while keeping your company compliant.

Understanding the US Hiring Framework

1. Federal vs. State Labor Laws

Unlike many countries with a centralized labor code, the US has a dual-layered system:

• Federal laws provide the baseline for employment standards (e.g., minimum wage, overtime).
• State and local laws may add stricter requirements. For example, California and New York often exceed federal standards.

Key takeaway: Always comply with both federal and applicable state/local laws when hiring in the US.

🔗 Reference: U.S. Department of Labor

Core Compliance Areas to Focus On

2. Worker Classification: Employee vs. Independent Contractor

Misclassifying workers is a common (and expensive) mistake. Employees are entitled to benefits like overtime pay and health insurance, while independent contractors are not. The IRS and Department of Labor have strict guidelines to determine classification.

Tips for proper classification:

• Evaluate control over work (schedule, tools, supervision).
• Review the permanency of the relationship.
• Consider whether the work is integral to the business.

Pro Tip: Tools like Riemote help assess risk factors and guide you in proper classification when hiring in the US.

3. Employment Eligibility and Documentation

All US employers must verify an employee’s identity and right to work using Form I-9. Additionally, E-Verify, a digital verification system, may be required in some states or for federal contractors.

What you need to do:

• Have the employee complete Section 1 of Form I-9 by their first day.
• Complete Section 2 within three business days.
• Store I-9s securely for at least three years.

🔗 More info: USCIS I-9 Central

4. Anti-Discrimination and Equal Opportunity

Federal laws prohibit discrimination based on race, color, religion, sex, national origin, age, disability, and more.

Important laws include:

• Title VII of the Civil Rights Act
• The Americans with Disabilities Act (ADA)
• The Age Discrimination in Employment Act (ADEA)

Employers must provide a non-discriminatory hiring process and, if necessary, reasonable accommodations during interviews and onboarding.

5. Wage & Hour Compliance

The Fair Labor Standards Act (FLSA) sets national rules on minimum wage, overtime, and record-keeping. However, many states have higher minimum wages or stricter overtime rules.

You must ensure:

• Employees are paid at least the federal or state minimum wage (whichever is higher).
• Non-exempt employees are paid overtime (1.5x pay) for hours worked beyond 40/week.
• Accurate timekeeping records are maintained.

Hiring Remote Employees in the US

Remote hiring in the US presents unique challenges—especially with employees living across different states. Each state may have distinct tax obligations, leave policies, and notice requirements.

With remote hires, consider:

• State-level tax registration
• Remote workplace safety policies
• Paid leave laws by state (e.g., California Sick Leave, New York Paid Family Leave)

Instead of juggling multi-state compliance manually, platforms like Riemote help you hire US-based remote workers legally and efficiently.

Why Choose Riemote for Hiring in the US?

Riemote simplifies US hiring by acting as your compliance guide and HR partner. Whether you're setting up a local entity or using Employer of Record (EOR) services, Riemote ensures:

• Proper worker classification
• State-wise onboarding compliance
• Payroll and tax filing support
• Real-time legal updates across all 50 states

Hiring in the US doesn’t have to be complex. Let Riemote handle the legalities so you can focus on growing your business.

👉 Explore solutions at www.riemote.com

Common Mistakes to Avoid When Hiring in the US

• ❌ Assuming federal law is all you need to follow
• ❌ Misclassifying full-time workers as contractors
• ❌ Ignoring state-specific onboarding paperwork
• ❌ Not offering mandatory benefits like workers' comp
• ❌ Skipping I-9 or wage documentation

Final Thoughts

Hiring in the US is a strategic move for global growth—but only if done right. With strict compliance regulations at every level, it's vital to stay updated and partner with experts. Riemote offers the infrastructure and support you need to onboard US employees legally, efficiently, and at scale.

Ready to scale your team confidently in the US?

➡️ Get started with Riemote today: www.riemote.com

FAQs: Hiring in the US

1. What are the basic legal requirements for hiring in the US?
Employers must comply with federal and state labor laws, verify employment eligibility (Form I-9), classify workers correctly, and meet wage and hour requirements.

2. Can foreign companies hire US employees without a US entity?
Yes. Using an Employer of Record (EOR) service like Riemote enables you to hire legally without forming a US company.

3. How can I ensure compliance with multi-state labor laws for remote workers?
Use HR platforms like Riemote that handle state-specific onboarding, tax registration, and benefits management.

4. What penalties exist for misclassifying employees?
Penalties can include back wages, taxes, fines, and even lawsuits. It’s critical to follow IRS and DOL guidelines.

5. Do I need to offer benefits to US employees?
While some benefits are optional, others like Social Security contributions, unemployment insurance, and workers’ compensation are mandatory.