POPULATION
340.1m
CURRENCY
$ (USD)
CAPITAL CITY
Washington, D.C.
The United States of America (USA) is a country primarily located in North America, consisting of 50 states, a federal district, five major unincorporated territories, nine minor outlying islands, and 326 Indian reservations. It is the world's third-largest country by both land and total area. The United States is a highly developed country with a diverse culture, advanced technology, and a strong economy.
The U.S. economy is the largest in the world by nominal GDP and the second-largest by purchasing power parity (PPP). Key sectors include manufacturing, services, technology, and finance. The United States is a major exporter of goods and a popular tourist destination, attracting visitors from around the world with its beautiful cities, historic sites, and world-renowned cuisine.
Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.
Under the law of the United States, written employment contracts are not required, and there are generally no minimum requirements for an employment contract. Additionally, in most states, no written memorialization of terms is required. Some written contracts are required for at-will employment. A written employment contract may limit the employer's right to terminate an employee.
Most written employment contracts describe the job's scope, duties, salary, and any other compensation and benefits.
A written employment contract may also contain clauses related to the job's duration, grounds for termination, provisions about trade secrets or client lists, an employer's ownership of employee work product, and dispute resolution methods related to the employment contract.
Depending on the state, certain provisions heavily slanted towards an employer may be found unconscionable or in violation of public policy. All employers that use written employment contracts have a special obligation to deal fairly with employees. This obligation is known as the "covenant of good faith and fair dealing." An employer can be held responsible for breaching this duty in some states.
Without an employment contract, employment relationships are presumed to be "at-will," meaning they can be terminated by either party at any time, with or without cause.
In the United States,bindingcontracts may generally be concluded in written or oral form. However, oral contracts have limitations and risks. The terms of oral contracts may be impossible to prove, making them challenging to enforce.
Contracts that are for a duration exceeding a year must be in writing.
In the United States, an implied contract is an agreement that has not been reduced to a formal document or even stated explicitly but is instead implied from a combination of the parties' oral and written statements and actions.
All U.S. jurisdictions generally allow an employee who wants to prove the existence of an implied contract to point to policies, actions, statements, and practices that led the employee to reasonably believe they were in fact employees, would be compensated in a certain way, or would be fired only for good cause. For example, an employee might rely on:
These examples are neither exhaustive nor applicable in all jurisdictions. Some jurisdictions recognize them all, others only a few. As for sources of evidence that an implied agreement existed between the parties, not every jurisdiction will consider the same evidence. Unless a disclaimer is specifically expressed, a handbook or written policy of an employer to which an employee must agree can unilaterally modify the terms of an employment contract. However, some states do not consider future or existing policies and handbooks as modifications to an employment contract.
According to the U.S. Wage and Hour Division (WDH), hours worked ordinarily include all the time an employee must be on the employer's premises, on duty, or at a prescribed workplace. The law of the United States indicates that the standard workweek is 40 hours. Generally, employees working more than 40 hours per week are eligible for overtime. The Fair Labor Standards Act (FLSA) contains the federal overtime provisions. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The Internal Revenue Service defines a "full-time employee" as an employee working an average of at least 30 hours per week or 130 hours per month per calendar month.
All 11 Federal Holidays are observed in all 50 states: New Year’s Day (January 1), Martin Luther King Jr. Day (3rd Monday in January), Presidents Day (3rd Monday in February. Not all states), Memorial Day (Last Monday in May), Juneteenth National Independence Day (June 19), Independence Day (July 4), Labor Day (1st Monday in September), Columbus Day (2nd Monday in October), Veterans Day (November 10), Thanksgiving Day (4th Thursday in November), Day after Thanksgiving (Day after 4th Thursday in November), Christmas Day (December 25)
In the United States, there are no national laws governing probationary periods. However, many employers have policies regarding trial periods, otherwise known as “introductory periods” or “probationary periods.” Such policies are devised based on the needs of the employer. They generally provide for a formal performance evaluation after an initial employment period (often 90 days).
Montana is the only state with legislation concerning probationary periods. If the employer does not specify a probationary period or state that there is no probationary period, a 12-month period is implied. This period may be extended further but may not exceed 18 months in total. The probationary period commences on the first day of employment. If the employee takes any leave of absence during the probationary period, these days are not counted towards the completion of the probationary period.
United States federal legislation does not expressly address notification procedures for dismissing a worker whose employment is governed by a contract.
Generally, workers in the United States are at-will employees and do not have employment contracts. However, if an employment contract does exist, the parties can bargain for terms to govern notification procedures.
However, some exceptions exist to the lack of regulation of employer notice periods. The Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide advance notice in cases of qualified plant closings and mass layoffs to allow their employees sufficient time to transition from their current jobs to new ones. Generally, a WARN Act notice is required when a business with 100 or more full-time workers (excluding workers with less than 6 months on the job and those who work less than 20 hours per week) is in the process of laying off at least 50 people at a single employment site.
In the United States, there is no requirement in the federal Fair Labor Standards Act (FLSA) for severance pay. Nevertheless, it is common for employers to provide this type of compensation (unless the employee was fired for misconduct). Severance pay is a matter of agreement between an employer and an employee (or the employee's representative). It is usually based on the length of employment upon termination. The Employee Benefits Security Administration (EBSA) may assist an employee who did not receive severance benefits under their employer-sponsored plan.
Some states require immediate payment of terminal wages as well as reimbursement for accrued or unused vacation days.
The federal minimum wage in the United States is USD 7.25 (US dollars) per hour, effective July 24, 2009. The federal minimum wage for employees who receive tips is USD 2.13.
Under the Fair Labor Standards Act (FLSA), non-exempt employees of federal contractors must be paid a minimum wage of USD 15.00 (effective January 30, 2022).
The Fair Labor Standards Act (FLSA) of the United States mandates the payment of overtime to certain employees in most circumstances. Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate of not less than time and one-half their regular pay rates (150% of their normal pay rate or a 50% overtime premium). There is no limit in the FLSA on the number of hours employees aged 16 and older may work in any workweek. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest unless overtime is worked on such days.
The overtime provisions of the FLSA apply on a workweek basis. An employee's workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. It need not coincide with the calendar week but may begin on any day and at any hour of the day. Different workweeks may be established for different employees or groups of employees. Averaging of hours over two or more weeks is not permitted. Normally, overtime pay earned in a particular workweek must be paid on the regular payday of the pay period during which wages were earned.
States may impose overtime requirements in addition to the federal FLSA.
Federal law, as well as most state laws, impose a weekly overtime standard. This standard means that nonexempt employees are entitled to overtime for every hour over 40 that they work per week, regardless of how many hours they work in a day.
A citizen of a foreign country who seeks to enter the United States generally must first obtain a U.S. visa, which is placed in the traveler’s passport, a travel document issued by the traveler’s country of citizenship.
Certain international travelers may be eligible to travel to the United States without a visa if they meet visa-free travel requirements. More than 20 non-immigrant visa types exist for people traveling to the United States temporarily, and many more types of immigrant visas exist for those coming to live permanently in the United States. The purpose of travel determines the type of visa needed.
The United States issues the following visas:
Temporary Visas
Permanent Residency (Green Cards)
Other Categories
Foreign nationals can obtain a work permit as an immigrant or non-immigrant.
A common way for a non-immigrant to work temporarily in the United States is for a prospective employer to file a petition with U.S. Citizen and Immigration Services (USCIS) on the foreign national's behalf. There are several non-immigrant temporary worker classifications.
Foreign nationals with the right combination of skills, education, and work experience may be able to live and work permanently in the United States by seeking an employment-based immigrant visa. There are five employment-based immigrant visa preferences (also called categories).
Foreign nationals must apply for a visa from the U.S. Department of State (DOS) unless citizens of their country of nationality are exempt.
In many cases, the USCIS must approve the foreign national's petition before they can apply to DOS for a visa or seek admission at a port of entry. Before entering the United States, the foreign nationals must present themselves to a U.S. Customs and Border Protection (CBP) officer and receive permission to enter and engage in their proposed activity.
Population 340.1m
Population in total, including all residents regardless of legal status © 2024 - WBG • EUROSTAT
83.5%
Urban Population
93.1%
Internet access
97%
Banking access
100%
Mobile phone access
Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division
Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division
Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/
Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex
Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)
In the United States, the Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave, or federal or other holidays. Vacation leave benefits are matters of agreement between an employer and an employee (or the employee's representative). Employers decide how much vacation to offer and to which employees to offer it. However, the Davis-Bacon Act provides paid leave to specified government contractors and subcontractors.
In the United States, employers can adopt vacation accrual schedules and cap the vacation time employees can accrue (many organizations take advantage of this right to encourage employees to use their vacation time regularly). For instance, company policy may provide that an employee earns a certain number of vacation days each month or a certain number of hours each pay period. Some companies impose a waiting period before new employees may accrue vacation time.
The United States has no federal legal requirements for paid sick leave. However, the Family and Medical Leave Act (FMLA) does require unpaid sick leave, which organizations subject to the FMLA must provide. The FMLA provides the employee or a member of the employee's immediate family with up to 12 weeks of unpaid leave for certain medical situations. In many cases, paid leave may be substituted for unpaid FMLA leave.
Employees are eligible for FMLA leave if they meet the following conditions:
As the momentum for a federal paid sick leave requirement grows, some states and municipalities have started requiring employers to provide paid sick leave to specific qualified individuals. The size of the employers subject to paid sick leave mandates, and the amount of paid sick leave granted to employees vary by jurisdiction.
United States federal law does not provide cash benefits to women during maternity leave.
Several states have enacted laws to provide new parents leave and pay. The following states have maternity leave requirements and/or have implemented or are in the process of implementing a family leave insurance program:
The benefit formula and eligibility criteria vary in each state.
Under the Family and Medical Leave Act (FMLA), U.S. workers generally have the right to take 12 weeks of unpaid leave. The FMLA applies to employees who have worked at least 12 months at a company with at least 50 employees. All states and territories fall under the federal FMLA.
The federal Family and Medical Leave Act (FMLA) guarantees 12 weeks of unpaid paternity leave in the United States. An employee's entitlement to FMLA leave for birth and bonding expires 12 months after the date of birth. A few states also have laws requiring paid paternity leave.
Four states—California, New Jersey, New York, Rhode Island, and Washington—currently require paid family leave for fathers in some form.
FMLA leave may be taken before a child's actual placement or adoption if an absence from work related to the placement for adoption or foster care is required. When FMLA leave is taken after the child's placement to ensure bonding, it must be continuous leave unless the employer agrees to intermittent leave. Entitlement to FMLA leave for the placement of a child for adoption or foster care expires 12 months after the placement.
In the United States, there are two types of mandatory social security plans for employees: the Old-Age, Survivors and Disability Insurance (OASDI) and Supplemental Security Income (SSI) Program.
The full benefit retirement age is currently 66 years and two months (gradually rising to age 67 by 2027). Employees require at least 40 quarters of coverage to be eligible for retirement. Individuals may avail themselves of early retirement at the age of 62, with at least 40 quarters of coverage. They may also delay retirement until 70 years of age.
The retirement pension amount is based on the average of the insured's 35 best years of earnings. The maximum benefit in 2023 is USD 4,555 (American dollars) per month. The pension is reduced by 5/9 of 1% for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced by 5/12 of 1% percent per month. Delayed pension is increased by 3-8% per year, depending on the year of birth. 50% of the monthly pension is paid for a spouse who has reached retirement age and has a lower pension income than the employee. Dependent children under 18 years also qualify for 50% of the monthly pension as benefits.
Supplemental Security Income is a social assistance payment paid by the government to aged people with no or little income. The monthly benefit in 2023 is USD 914 for an individual and USD 1,371 for a couple.
There are other voluntary contribution plans for employees that provide retirement benefits in addition to social security benefits.
The contributions to social security are as follows (the maximum income for OASDI contributions in 2024 is USD 168,600:
In 2025, the maximum income will rise to USD 176,100.
In the United States, Old-Age, Survivors, and Disability Insurance (OASDI) pays survivor benefits to family members of a deceased insured member younger than 62 years and had at least 6 quarters of coverage. Eligible survivors include spouses, children, and parents of the deceased.
The survivors' benefit amount is based on the deceased person's earnings. The benefits are paid as a percentage of the disability pension the deceased person received or was entitled to. The maximum combined survivor pension is 180% of the old-age pension (or 150% of the disability pension) the deceased received or was entitled to.
In case of an employee's death caused by a work-related accident or occupational disease, 35% to 70% of the deceased's earnings are paid to the widow(er) and 60% to 80% to a widow(er) with dependent children.
In the United States, disability benefits are paid under two programs. First, the Social Security disability insurance program under the Old-Age, Survivors, and Disability Insurance (OASDI) pays pensions to employees who fulfill the requirement for insurance coverage based on their age. Also, the Supplemental Security Income (SSI) program provides benefits to disabled adults and children with limited income and resources.
The pension is based on the insured's average covered earnings (adjusted based on increases in the national average wage) from age 21 up to the quarter the disability began, excluding up to five years of the lowest earnings. Additional benefits are paid for dependent spouses and children.
In case of a disability due to a work accident or an occupational disease, employers are responsible for paying disability benefits to their employees based on the degree and type of disability.
In the United States, 14 years is the minimum age for employment under the Fair Labor Standards Act (FLSA). The FLSA also limits the number of hours worked by minors under the age of 16.
The FLSA also generally prohibits a minor's employment in work declared hazardous by the Secretary of Labor (for example, work involving excavation, driving, and the operation of many types of power-driven equipment). The FLSA contains several requirements that apply only to particular types of jobs (for example, agricultural work or the operation of motor vehicles) and many exceptions to the general rules (for example, work by a minor for their parents). Each state also has its own laws relating to employment, including the employment of minors. If state law and the FLSA overlap, the law which is more protective of the minor will apply.
The minimum age for Hazardous Employment is 18 years old in the non-agricultural sector and 16 years old in the agricultural sector.
Unemployment 4.1%
Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBG • ILO
61.9%
Labor force population share
45.6%
Female share of labor force
86%
Healthcare access
Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.
Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)
Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025
Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)
Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage
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