Expanding into the United States is a major milestone for any international tech company, but it also means entering one of the most complex employment law environments in the world. The US system is decentralized, with overlapping federal, state, and local rules that can surprise even seasoned founders. Before your startup makes its first US hire, here are the top 10 key issues every global tech employer should understand.
1. State Law Differences Matter
There is no single “US employment law.” Each state has its own wage, leave, and termination rules. Compliance strategies that work in traditionally conservative states like Texas or Florida may not pass muster in traditionally progressive states like California or New York. Choose your first hiring state with care.
2. Lay the Groundwork Early
Before hiring, set up a US entity, obtain an EIN, register for payroll taxes, and develop compliant offer letters, IP assignments, and employee handbooks. Even if you do not have many US-based employees, it is critical to establish basic policies that establish your workplace culture and prevent liability.
3. Employment is “At Will”
In most US states, employment is “at will,” meaning either the employer or employee can end the relationship at any time, for any lawful reason. There’s generally no required notice period or severance unless provided by contract. For non-US employers, this flexibility is often unexpected – as is the significant legal risk that arises when policies or...
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