Labor law in the US🇺🇲: A guide for expats

The US attracts many international workers each year thanks to its large economy, relatively high standard of living, and wide range of job opportunities for skilled professionals. If you move there for work, it’s important to understand your rights and what to expect in the workplace.

This guide to labor law in the US covers key topics such as employment arrangements, working hours, pay, and what to do if you need to raise a concern or make a complaint.

An overview: Labor law in the US

The US has a range of employment laws in place that have developed over time to protect workers. Federal regulations cover areas such as minimum wage, workplace safety, anti-discrimination, and employee benefits. However, there is no federal requirement for paid annual leave, and some protections common in other countries are less extensive.

Key federal legislation includes:

• 1938 Fair Labor Standards Act (introduced the first minimum wage)
• 1963 Equal Pay Act
• 1970 Occupational Safety and Health Act
• 1974 Employee Retirement Income Security Act

💡 The US does not have a single codified labor code. Instead, employment relationships are governed by a combination of federal, state, and local government laws.

➡️ Most workers are employed under an “at-will” system, meaning employment can generally be terminated by either party without cause, subject to legal protections.

Compared to many other developed countries, the US provides fewer statutory protections in areas such as dismissal rights, paid leave, and collective bargaining. Union membership is relatively low, and legal frameworks in many states limit union power.

According to the 2025 Global Rights Index, the US is rated 4 (out of 1–5+), indicating systematic violations of worker rights. It scores 63.5 out of 100 on the 2024 Labor Rights Index, indicating limited access to decent work. Scores are highest (100) for safe work, fair treatment, and absence of child/forced labor, but lowest (20–25) for employment security and freedom of association.

As a foreign worker – your right to work in the US 🇺🇲

If you want to relocate to work in the US, you will usually need a work visa. The US offers two main types:

• Temporary (Nonimmigrant) visas
• Permanent (immigrant) visas (also known as Green Cards)

Temporary visas typically require a job offer, with the employer filing a petition with the US Citizenship and Immigration Services (USCIS). There are many different categories of temporary work visas, often valid for between 1–3 years (with extensions in some cases).

Workers on temporary visas generally have similar workplace rights to US workers, but their immigration status is usually tied to their employer. Changing jobs often requires a new petition and approval.

💡 Permanent work visas (Green Cards) are available for skilled workers or business investors in five preference categories. Most require a job offer, though some allow individuals to apply independently.

➡️ Green Card holders can live and work in the US indefinitely and may apply for US citizenship after five years.

Around 140,000 permanent US work visas are available each year to skilled workers and their spouses/children.

Employment contracts in the US

Employment contracts in the US are generally not required to be in writing under federal law. Most employment relationships are presumed to be “at-will“, meaning either the employer or employee can terminate the relationship at any time for any lawful reason, subject to federal, state, and local legal protections.

While there is no universal requirement for a written contract, employers must comply with laws governing wages, hours, and working conditions, and some jurisdictions require written notice of certain employment terms.

More formal written agreements are more common for senior, specialized, or executive roles, and typically include details on duties, compensation, benefits, and termination provisions. These agreements may be open-ended or for a fixed term.

Wages and salary in the US

Most workers are entitled to a minimum wage in the US. The current federal minimum wage is $7.25/hour. Most states also have their own minimum wage, and workers are entitled to the higher of the two rates. Certain groups can be paid at a lower rate, including full-time students and workers aged under 20 (for a limited period).

Workers also have a right to overtime pay if they work more than 40 hours in a week. The minimum rate is 1.5x the standard hourly pay rate.

If you’re receiving your salary in USD but need to send money back home or manage finances in multiple currencies, consider the exchange rates and fees you’ll pay.

Using Wise, you can hold and convert money in 40+ currencies, and send international transfers with transparent fees and the mid-market exchange rate. This means you can receive a US salary and convert into other currencies at low fees if you need to settle bills or make payments back home. There are also extra discounts if you have to make large transfers abroad (above GBP20,000 or equivalent).

Work hours in the US

The US has no general federal law limiting the maximum number of hours most adult employees can work in a week. Under the Fair Labor Standards Act, non-exempt employees must receive overtime pay for hours worked in excess of 40 a week.

Federal law does not require employers to provide breaks during the day or rests between shifts, although many state labor laws include minimum meal periods or minimum paid rest periods.

Employees generally do not have a federal right to request flexible schedules, which are typically determined by agreement with employers, though some state and local laws provide limited scheduling protections.

Paid and unpaid leave in the US

Under federal law, employers are not required to provide paid annual vacation or sick leave. The Family and Medical Leave Act (FMLA) allows eligible employees of covered employers (generally those with 50 or more employees) to take up to 12 weeks of unpaid leave for certain family or medical reasons.

Paid leave is governed by a combination of state and local laws and employer policies. While no state requires paid vacation leave, many states and municipalities mandate paid sick leave, and some operate paid family and medical leave programs.

In practice, many employers voluntarily offer paid vacation – often around 10 days per year – alongside public holidays, though this varies widely.

The US Department of Labor provides information on leave laws by state. Brightmine also provides a useful summary of various paid/unpaid leave laws for all US states.

Parental rights in the US 🧑‍🧑‍🧒

The US does not guarantee statutory paid maternity or paternity leave at the federal level. The FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child. Eligibility is limited to certain workers (either parent) based on employer size and tenure.

The Pregnant Workers Fairness Act requires employers to provide reasonable accommodations for pregnancy, childbirth, and related medical conditions.

Paid parental leave is primarily provided at the state level. Currently, 12 states – including California and New York – plus Washington D.C. have paid family and medical leave programs.

Ten additional states – including Florida and Texas – have enacted legislation to create a voluntary paid leave option.

Social security and tax in the US

Employees in the US make income and payroll tax contributions which are deducted from salary payments. Income tax rates are progressive, up to a maximum of 37% for the highest earners. Payroll taxes are currently around 15.3% on earnings (split equally between employers and employees) to fund:

• Social Security – benefits for retirees, people with disabilities, and survivors or deceased workers (12.4% of earnings up to a threshold)
• Medicare – medical services and hospital care for people aged 65 and above (2.9% of all earnings, and an additional 0.9% on high earnings above a threshold)

Additionally, employers pay a federal unemployment tax (6% on the first $7,000 of an employee’s wages) to fund unemployment benefits.

Protection from discrimination at work in the US

US anti-discrimination laws protect against discrimination or harassment based on characteristics including age, sex, ethnicity, religion, sexual orientation, gender identity, disability, or nationality.

Most legislation covers direct discrimination, while some also includes indirect discrimination (e.g., rules/procedures that unfairly disadvantages certain groups). Key federal legislation includes:

• 1963 Equal Pay Act
• 1964 Civil Rights Act
• 1967 Age Discrimination in Employment Act
• 1990 Americans with Disabilities Act

If you feel you have experienced discrimination or harassment in the workplace, or would like to report an incident, you can:

• File a complaint to the Equal Employment Opportunities Commission (EEOC), although the remit only covers employers of a certain size
• Report it to your local Fair Employment Practices Agency (FEPA)
• File a private lawsuit

Joining a union in the US

Under the National Labor Relations Act (NLRA), most private-sector employees in the United States have the right to form and join unions. However, union membership is relatively low – around 10% of the workforce in recent years, according to the Bureau of Labor Statistics.

There are many sector-based unions, such as the National Education Association (NEA) and the Service Employees International Union (SEIU), many of which are affiliated with the AFL-CIO, the largest labor federation in the US.

The NLRA protects workers’ rights to collective action, including striking. Workers engaged in lawful strikes generally cannot be fired for striking, but in economic strikes employers may hire permanent replacements, while stronger protections apply in cases involving unfair labor practices.

Health and safety at work in the US

The Occupational Safety and Health Administration (OSHA) oversees workplace health and safety at the federal level. Laws provide employees with the right to work in a safe place free from hazards. Rights and protections include:

• Receiving sufficient workplace health and safety training
• Working on safe equipment
• The right to refuse to work in hazardous environments
• Receiving sufficient safety equipment, e.g., gloves, face protection, or harnesses
• Protection from toxic chemicals
• The right to request an OSHA inspection

Employers in most states have to provide Worker’s Compensation Insurance, which covers medical expenses and lost wages if they suffer a work-related injury or illness.

If you wish to report a breach of health and safety in your workplace, you can do so through the OSHA website.

Terminating the employment relationship in the US

Employment relationships in the US are generally “at-will”, meaning that either party can terminate the relationship at any time for any lawful reason, subject to federal, state, and local legal protections, and any terms and conditions outlined in individual employment contracts.

Dismissals and redundancy

Under US employment law, most employment relationships are governed by the doctrine of at-will employment, meaning an employer may terminate an employee at any time, with or without notice, and for any lawful reason. However, employees cannot be dismissed for illegal reasons, including:

• Discrimination based on protected characteristic
• Refusing to engage in illegal activities
• Reporting illegal or unsafe work practices

Notice periods are generally not required by law but may be established through employment contracts, collective bargaining agreements, or company policies. While two weeks’ notice is customary, it is not legally mandated.

There is no general federal requirement for redundancy/severance pay, although it may be provided by agreement or employer policy. The Worker Adjustment and Retraining Notification (WARN) Act requires certain large employers to give at least 60 days’ notice for large-scale layoffs or plant closures.

Leaving a job voluntarily

Under “at-will” arrangements, employees can generally leave their job at any time without legal requirement to give notice. Individual contracts may include required notice periods and procedures to follow.

If you leave a job voluntarily in the US, you usually won’t be able to claim unemployment benefits, unless you can show you left for a legally recognized “good cause”.

Retirement

Employees can claim Social Security old-age retirement benefits from the age of 62, although they receive a reduced amount. For most people, the full retirement age is 67, although it’s possible to delay retirement until the age of 70 in return for increased benefits.

Many US employees have workplace retirement plans which they can access from the age of 59.5, with the option to delay minimum withdrawals until the age of 73. Early withdrawal before the age of 59.5 usually triggers a 10% tax penalty.

If you’re planning to retire in your home country or another location, you may need to move retirement funds internationally. Wise can help with international transfers when the time comes to relocate your finances. Transfers use the mid-market exchange rate with no hidden fees, and there are extra discounts on large transfers (above GBP 20,000 or equivalent).

Temporary, part-time, agency and informal workers in the US

Employers in the US can recruit part-time, temporary, agency, and informal workers. These workers generally have the same core labor protections, including the minimum wage, a safe and healthy workplace, and protection from discrimination and harassment. These rights also apply to temporary migrant workers.

Some categories of workers are exempt from federal minimum wage or overtime provisions under the Fair Labor Standards Act. For example, certain agricultural workers and employees of seasonal amusement or recreational establishments may be exempt depending on factors such as the size and nature of the employer. Seasonal agricultural workers are also generally excluded from federal overtime pay requirements, although some states provide additional protections.

Making a complaint as a worker in the US

If you want to make a workplace complaint or raise a concern in the US, you should take the matter to your employer in the first instance if possible, consulting your employee handbook on the exact steps to take if you have one.

The process for taking the matter further depends on the nature of the complaint. You should contact

• EEOC for discrimination or harassment issues
• The US Department of Labor or your state Labor Office for wage, overtime, work hour issues
• OSHA, your state Labor Office, or the relevant government industry regulator for workplace health and safety issues

The exact process to follow if you’re unhappy with the outcome of your complaint varies depending on the complaints authority, but you can usually file a claim in court.

Useful resources

Information last checked on 29 April 2026.

• US Department of Labor – federal government agency that deals with workplace issues including pay and working conditions, and oversees workplace laws
• List of state Labor Offices and contact details
• usa.gov – information on federal labor laws
• Occupational Safety and Health Administration (OSHA) – arm of the US Department of Labor that deals with workplace health and safety, and has information on worker rights and protections
• Equal Employment Opportunity Commission (EEOC) – deals with issues relating to discrimination and harassment