Employment contract
There is no single federal written-employment-contract form for every private job. Start with applicable state law and document parties, role, worksite/remote scope, employee or contractor status, exempt/nonexempt status, pay and pay period, hours, overtime, benefits, confidentiality/IP, incorporated policies, leave, disputes and termination. Offers, handbooks and actual management must align; an “at-will” clause cannot waive minimum wage, nondiscrimination, anti-retaliation, concerted-activity, workers’ compensation or other mandatory rights. Some states require wage notices, written commission agreements or specified languages.
Probation
Federal private-sector law sets no universal 30/60/90-day probation and no law-free probation window. An employer may document review timing, objectives, coaching, benefit waiting periods and a consistent separation process, but FLSA, Title VII, ADA, ADEA (subject to coverage thresholds), PWFA, NLRA, OSHA, USERRA, FMLA/state eligibility and anti-retaliation rules can apply from recruitment or day one. Completing probation does not itself change at-will status or create statutory permanent employment unless a contract, collective agreement or state law does.
Hours, rest & overtime
FLSA-covered nonexempt employees generally receive at least 1.5 times the regular rate for hours actually worked over 40 in each fixed 168-hour workweek. Do not average weeks or infer exemption from salary, title or a “manager” label. Federal law sets no general daily/weekly maximum for most adults and no universal meal/rest-break mandate; states, sectors, minors, healthcare/transport, government contracts and collective agreements may be stricter. Record all suffered or permitted work, including remote work, training, waiting and after-hours messages.
Minimum wage by region
The FLSA federal minimum remains US$7.25/hour; pay the higher applicable state or local standard where both cover the worker. DOL’s 1 July 2026 table shows many states and D.C. above federal—for example California US$16.90 and D.C. US$18.40—but city, industry, employer size, youth/training, tip, government-contract and later effective-date rules can change the result. Retain the governing source for every worksite and pay period; a national average, salary or tips cannot hide a deficient non-tip cash wage/minimum wage.
Salary & talent supply
Benchmark by occupation, state, metro/nonmetro area and industry percentile using BLS May 2025 OEWS, then calibrate with current role samples for level, skills, remote/hybrid scope, shift, bonus, equity and benefits. OEWS measures wage-and-salary employment; it is not a particular offer, minimum wage, FLSA exemption salary, immigration prevailing wage or total compensation. Record SOC, location, sample period, percentile, gaps and approval rather than copying Silicon Valley or national averages everywhere.
Payroll, payslip & payment
At hire complete Form W-4, Form I-9, state withholding/unemployment/new-hire reporting, bank authorization and benefit elections. Run payroll under the applicable state’s pay-frequency, wage-statement, lawful-deduction and final-pay rules. Federally deposit withholding/FICA on the assigned schedule, generally file quarterly Form 941 and annual Form 940, and furnish/file W-2/W-3 by 31 January. A third-party payroll provider does not transfer the employer’s ultimate responsibility; correct through forms such as 941-X/W-2c rather than backdating late reporting.
PIT withholding & social insurance
For 2026, employer and employee each pay Social Security at 6.2% of covered wages up to the US$184,500 wage base; each pays Medicare at 1.45% with no wage base. The employer withholds an additional 0.9% Medicare tax after one employee’s calendar-year wages exceed US$200,000, with no matching employer share. FUTA is generally 6.0% on the first US$7,000 per employee, with up to a 5.4% credit for timely qualifying state unemployment tax. Add SUTA, workers’ compensation, state/local payroll taxes and sector programs; distinct bases, credits and classifications cannot be collapsed into one fixed percentage.
Employer-cost calculator scope
The current U.S. calculator is only a federal baseline budget: it approximates employer/employee Social Security at 6.2%, Medicare at 1.45% and the common post-credit FUTA view. It does not fully handle the cumulative 2026 Social Security cap, Additional Medicare withholding, FUTA credit-reduction states, SUTA experience ratings, state/local income and payroll taxes, workers’ compensation, health/ACA, 401(k), overtime regular rate, tips, benefits, equity, immigration wages or multi-state nexus. It is not a payroll, tax return, offer or compliance opinion.
Annual leave
The FLSA does not require private employers to provide paid or unpaid vacation. Once leave is provided by state/local law, contract, handbook, collective agreement or established practice, follow applicable accrual, carryover, use-it-or-lose-it, approval and separation-payout rules. Do not collapse PTO, FMLA, state paid family/medical leave, paid sick leave, jury/military/voting leave into one balance or retaliate for protected leave.
Public holidays & overtime
Federal holidays principally govern federal operations; the FLSA does not require an ordinary private employer to close, provide paid holiday leave or pay double time. Holiday hours worked still count in the workweek and nonexempt hours over 40 follow overtime rules. State law, government contracts, collective agreements or policy may provide more. Maintain calendars by work state and customer/government contract rather than treating federal office closures as statutory paid leave for everyone.
Family & medical leave
FMLA generally gives an eligible employee of a covered employer up to 12 unpaid, job-protected workweeks per 12 months with group health continued; military caregiver leave can reach 26 weeks in one 12-month period. A private employer is generally covered at 50 employees for 20 workweeks in the current or prior year; the employee generally needs 12 months’ service, 1,250 hours in the prior 12 months and 50 employees within 75 miles. PWFA generally requires employers with 15+ employees to reasonably accommodate known pregnancy/childbirth-related limitations absent undue hardship. State paid leave, sick leave and lactation rules layer on top.
Statutory & market benefits
Federal law does not universally require private employers to provide a 13th salary, bonus, vacation, ordinary sick pay, health insurance or 401(k), but minimum wage/overtime, FICA/FUTA, workers’ compensation/unemployment, OSHA and protected leave are not optional benefits. If an ERISA health/retirement plan is offered, handle plan documents, fiduciary, disclosure, claims and Form 5500 duties. Group health plans generally enter COBRA where the employer had 20+ employees on most business days in the prior year. ACA applicable-large-employer, HIPAA, MHPAEA, GINA, state insurance and equal-benefit rules need separate analysis.
Termination & disputes
First test whether the governing state follows at-will employment and whether written/implied contracts, collective agreements, public policy, discrimination, retaliation, protected concerted activity, leave, whistleblower or immigration limits apply. Federal law has no universal notice or severance for ordinary private employees, but WARN generally requires 60 days’ notice for a qualifying plant closing or mass layoff by a covered employer, and state mini-WARN laws may reach further. Use a documented consistent reason, investigation and approval, then settle final pay/expenses/PTO, benefits/COBRA, property/data, unemployment and immigration; review group decisions for adverse impact and preservation duties.
Contractor classification
The same worker may face separate FLSA economic-realities, IRS common-law, state ABC, unemployment, workers’ compensation and joint-employer tests; one result does not decide all others. A 1099, LLC, invoice, remote arrangement or “consultant” label is not determinative. Record behavioral control, financial control, relationship type, profit/loss opportunity, investment, permanence, whether work is integral and genuine independent business. For uncertain federal tax status, consider Form SS-8. Misclassification can create wage/overtime, tax, benefit, penalty, collective-action and state-law exposure.
Foreign workers
Complete Form I-9 consistently for every hire: the employee generally completes Section 1 no later than the first workday, and the employer completes Section 2 within three business days after paid work begins. Accept facially genuine, person-related List A or List B plus C documents without nationality-based document demands. Reverify under expiration and automatic-extension rules and retain through the later of three years after hire or one year after termination. I-9/E-Verify is only identity/work-authority control; H-1B/L-1/O-1/TN/E employer, role, site, wage and LCA/filing limits must align with U.S. A2.
Recruiting channels
Test supply through state workforce agencies, CareerOneStop, Apprenticeship.gov, schools and role-specific channels, then optimise qualified rate, time-to-fill, offer acceptance, source cost and 90/180-day retention rather than calling one platform universally best. Job ads, screening, background/credit/criminal records, AI tools, salary history and pay transparency follow federal and state/local rules. EEOC-protected traits cannot drive decisions; ADA/PWFA accommodation and medical information must be separated and confidential. Handbooks must not prohibit wage discussion or other protected concerted activity.
Retirement age
There is no universal compulsory retirement age for ordinary private jobs. ADEA generally covers employers with 20+ employees and protects people aged 40+, prohibiting age discrimination in hiring, pay, benefits, layoff and termination; narrow statutory executive/public-safety exceptions need case-specific review. Social Security, Medicare or pension eligibility does not require separation. Do not stop payroll or reduce benefits automatically at age 62/65/67. Handle voluntary retirement, OWBPA waivers, ERISA plan distributions, Medicare coordination and succession planning separately.
Employment compliance calendar
At each hire: role/SOC, work state and nexus, classification/exemption, pay transparency, nondiscrimination, I-9, background checks, state registration and safety training. Each workweek/payday: time, regular rate, minimum wage, overtime, statement, deductions, leave and protected activity; deposit tax on schedule and administer benefits. Quarterly/annually: Forms 941/940, W-2/W-3, state tax/unemployment, OSHA records/reports, ERISA/ACA filings and licences. At change/exit: retest state law, immigration, final pay, PTO, COBRA/WARN, data and retention. At least quarterly review DOL/IRS/USCIS/EEOC/state changes with an owner, deadline, evidence and failure escalation for every work state.