Hiring in the United States gives energy and infrastructure companies access to a large, specialised workforce, but employment compliance is highly location-dependent. Federal rules apply nationwide, while individual states and cities may impose higher minimum wages, paid leave requirements, pay-transparency rules, payroll registrations and other employer obligations.

For companies expanding into the US, this means the employee’s work location matters from the beginning. Before making an offer, employers should confirm the employment model, worker classification, payroll setup, applicable state requirements and right to work.

This guide covers some of the main considerations for employers planning a US hire in 2026. It provides general information rather than legal or tax advice, and requirements should always be checked against the employee’s role, location and employment arrangement.

Hiring process in the United States

Hiring employees directly in the United States requires coordination across federal, state and sometimes local requirements. The exact process depends on where the employee works, the employing structure, the role and the size of the employer.

1. Establish the employing structure and obtain an EIN

Companies planning to employ workers directly in the US should first determine the appropriate legal and tax structure for their operations.

This may involve:

• Establishing and registering a US legal entity, such as a corporation or LLC

• Registering or qualifying the company in states where it conducts business

• Obtaining an Employer Identification Number (EIN) from the IRS for federal tax and payroll purposes

• Reviewing whether activities in additional states create registration, tax or employment obligations

2. Complete state payroll and employment registrations

Employers need to identify the registrations required in every state where employees work. Depending on the state, these can include:

• State income-tax withholding

• State unemployment insurance

• Workers’ compensation coverage

• New-hire reporting

• State or local payroll taxes and employer registrations

Requirements vary considerably by location. Employing a remote worker in a new state can also create additional registration and compliance obligations.

3. Review federal, state and local employment laws

US employers operate under multiple layers of employment regulation.

Important federal laws include the Fair Labor Standards Act (FLSA), which regulates minimum wage and overtime; the Family and Medical Leave Act (FMLA), which provides eligible employees of covered employers with job-protected leave; and federal anti-discrimination laws such as Title VII and the Americans with Disabilities Act (ADA).

States and cities can impose additional requirements covering minimum wages, overtime, paid leave, pay transparency, background checks, employee notices, final pay and other employment conditions.

Employers should therefore review the rules applicable to the employee’s actual work location before making an offer.

4. Define the role and classify the worker

Before recruitment begins, employers should clearly define the role, responsibilities, work location, schedule and compensation.

They should also determine whether the individual will be engaged as an employee or independent contractor. For employees, employers should separately determine whether the role is full-time or part-time and whether it is exempt or non-exempt from applicable overtime requirements.

Worker classification depends on the actual relationship, not simply the title used in a contract. Federal tax and wage-and-hour rules use specific classification tests, and individual states may apply different or stricter standards.

Once the structure is confirmed, employers can source candidates, conduct interviews and complete appropriate pre-employment screening. Where third-party background checks are used, federal Fair Credit Reporting Act requirements and applicable state or local restrictions should also be considered.

5. Prepare compliant offer and employment documentation

Successful candidates should receive clear documentation covering the main terms of employment, including:

• Job title and responsibilities

• Compensation and applicable benefits

• Work location and working arrangements

• Exempt or non-exempt status where appropriate

• Start date

• Applicable policies and conditions of employment

The required documentation varies by state. US employment should not automatically be described as requiring a formal employment contract, as many employees work under offer letters, policies and at-will employment arrangements instead.

Employers should also provide any state or local notices required at or before hiring.

6. Complete onboarding and employment verification

After the candidate accepts the offer, employers should complete the required onboarding steps.

Every US employer must verify the identity and employment authorisation of employees hired to work in the United States using Form I-9. The current form is Edition 08/01/23 and carries an expiration date of 05/31/2027.

The employee must generally complete Section 1 no later than the first day of employment, and the employer normally completes Section 2 within three business days of the employee’s first day.

Employers should also:

• Set up payroll and tax withholding

• Complete required new-hire reporting

• Enrol eligible employees in applicable benefit programmes

• Provide required notices, policies and workplace information

• Arrange systems, equipment and workplace access

• Complete required safety, site or role-specific training

For energy and infrastructure assignments, onboarding may also include client HSE requirements, medical or fitness requirements where lawful, technical certifications and site-access procedures.

Payroll and taxation in the United States

US payroll involves federal, state and sometimes local taxes. Employers are responsible for calculating wages, withholding applicable employee taxes, paying employer contributions and filing payroll reports with the relevant authorities.

Federal employment taxes

For 2026, Social Security tax is 6.2% for the employee and 6.2% for the employer on wages up to USD 184,500.

Medicare tax is 1.45% for the employee and 1.45% for the employer, with no wage cap. Employers must also withhold an additional 0.9% Medicare tax from an employee’s wages above USD 200,000 in a calendar year. There is no corresponding employer contribution for this additional tax.

Employers may also be liable for Federal Unemployment Tax Act (FUTA) tax. The standard FUTA rate is 6% on the first USD 7,000 of FUTA wages per employee. A credit of up to 5.4% may generally reduce the effective federal rate to 0.6%, although credit-reduction rules can affect the final amount.

State and local taxes

State payroll requirements vary considerably. Depending on the employee’s location, employers may need to manage state income-tax withholding, unemployment insurance, paid-leave contributions and other state or local payroll taxes.

Employers hiring remotely across several states should review payroll obligations for each employee’s work location.

Tax deposits and reporting

Federal employment taxes are reported and deposited according to IRS requirements. Employers generally use Form 941 for quarterly federal payroll reporting and Form W-2 for annual wage and tax reporting to employees and the Social Security Administration.

Separate federal unemployment, state and local reporting obligations may also apply.

Overtime classification

Under the FLSA, covered non-exempt employees generally receive overtime at one and a half times their regular rate for hours worked over 40 in a workweek.

For the federal executive, administrative and professional exemptions, the Department of Labor currently applies a salary threshold of USD 684 per week. The highly compensated employee threshold is USD 107,432 per year.

Salary or job title alone does not determine whether an employee is exempt. The applicable salary-basis and duties requirements must also be satisfied, and state rules may be stricter.

Employee benefits and leave policies

Benefits are an important part of attracting and retaining employees in the United States. Some obligations are established by federal law, while others depend on employer size, state law or the employer’s benefit programme.

Health coverage

Under the Affordable Care Act, an employer is generally an Applicable Large Employer (ALE) if it averaged at least 50 full-time employees, including full-time-equivalent employees, during the preceding calendar year.

ALEs are subject to employer shared-responsibility requirements and related health-coverage reporting obligations. This does not simply mean that every employer with 50 employees must provide the same health plan; the detailed affordability, minimum-value, reporting and potential penalty rules should be reviewed separately.

Smaller employers are generally not subject to the ACA employer shared-responsibility provisions, although other benefit requirements may apply.

Family, medical and paid leave

The federal Family and Medical Leave Act (FMLA) generally covers private employers with 50 or more employees for at least 20 workweeks in the current or preceding calendar year.

Employee eligibility is separate. An employee generally needs at least 12 months of service, at least 1,250 hours of service during the preceding 12 months and a work location where the employer has at least 50 employees within 75 miles.

Eligible employees may receive up to 12 workweeks of unpaid, job-protected leave for specified family and medical reasons, with different provisions applying to certain military-caregiver leave.

There is no general federal requirement for private employers to provide paid annual vacation. However, a growing number of states and local jurisdictions require paid sick leave, paid family and medical leave or other paid time off.

Social Security and Medicare

Employers and employees contribute to Social Security and Medicare through federal payroll taxes. These programmes support retirement, disability and healthcare benefits for eligible individuals.

Workers’ compensation

Workers’ compensation requirements for most private-sector employees are primarily established at state level. Employers should arrange the required coverage before employees begin work and review the rules in each state where they have workers.

Common additional benefits

Many US employers provide benefits beyond statutory requirements to remain competitive in the labour market.

These can include:

• 401(k) or other retirement plans and employer matching

• Medical, dental and vision insurance

• Life and disability insurance

• Paid vacation and additional paid leave

• Equity or incentive programmes

• Wellness and mental-health support

• Training and professional-development budgets

• Flexible or remote-working arrangements

The appropriate package depends on the workforce, industry, location and employer strategy.

Termination and employee offboarding

Termination requirements in the United States depend on federal law, state law, contractual commitments and the circumstances of the termination.

At-will employment

At-will employment is the general starting point for many private-sector employment relationships in the United States. It generally allows either the employer or employee to terminate the relationship without a fixed term, subject to important legal and contractual limitations.

Employers cannot terminate employment for an unlawful reason, including prohibited discrimination or retaliation. State laws may also recognise additional exceptions to at-will employment.

Rather than assuming that the same rule applies identically in every state, employers should check the law applicable to the employee’s work location before termination.

Contractual and other exceptions

Termination rights can also be affected by:

• Employment agreements
• Collective bargaining agreements
• Employer policies or commitments
• Public-sector employment protections
• Federal, state and local anti-discrimination and anti-retaliation laws
• Protected leave or whistleblower protections

Employers should document legitimate business reasons for termination and follow applicable internal procedures consistently.

Final pay and offboarding

Final-pay deadlines vary significantly by state. Some states require payment immediately or shortly after termination, while others permit payment on the next regular payday.

Treatment of unused vacation or paid time off also varies according to state law and employer policy.

Offboarding may include:

• Processing final wages and other amounts due

• Collecting company equipment

• Revoking systems and site access

• Providing required separation notices

• Providing applicable health-benefit continuation information, including COBRA notices where required

• Documenting the termination and maintaining required records

Larger layoffs

The federal Worker Adjustment and Retraining Notification (WARN) Act generally requires covered employers with 100 or more employees to provide 60 days’ advance notice of certain qualifying plant closings and mass layoffs.

The federal thresholds and exceptions are detailed, and some states have separate “mini-WARN” laws with different employer-size, notice or layoff thresholds. Workforce reductions should therefore be reviewed before notices or termination dates are confirmed.

Hiring foreign employees in United States

A foreign national is someone who works in the U.S. but is not a U.S. citizen or naturalized national. Hiring them in the United States requires strict compliance with immigration and employment laws. 

Common work visas include: 

• H-1B – Specialty occupations 

• L-1 – Intra-company transfers 

• O-1 – Individuals with extraordinary ability 

• TN – Canadian and Mexican professionals 

• E – individuals coming to the USA to conduct trade or investment 

• J-1 – cultural exchange programs 

Each visa has specific eligibility criteria, employer obligations, and application timelines. Some visas (like H-1B) require sponsorship and are subject to annual quotas. 

Form I-9 and E-Verify 

All US employers must complete Form I-9 for every employee to verify identity and work authorization. Some employers also use E-Verify, a government system that cross-checks the information with federal records. 

Compliance Considerations 

Employers must keep detailed records and remain compliant with federal and state employment laws, including anti-discrimination regulations under the Immigration and Nationality Act (INA). Hiring unauthorized workers in the United States can result in penalties. 

Common US hiring risks

Some of the most common issues arise when employers:

• Apply the federal minimum wage without checking higher state or city requirements.

• Treat a worker as an independent contractor when the actual relationship supports employee status.

• Miss Form I-9 deadlines or use an outdated form or process.

• Assume that a salary or managerial job title automatically makes an employee overtime-exempt.

• Use PEO and EOR terminology interchangeably.

• Start payroll before state registrations, unemployment insurance and workers’ compensation requirements have been addressed.

• Overlook state and local paid-leave, pay-transparency or hiring requirements.

• Hire remote employees without reviewing the obligations created by their work location.

For employers operating across several states, these differences make location-specific compliance particularly important.

How WTS Energy can support your US workforce

WTS Energy supports energy, engineering and infrastructure companies with recruitment and workforce solutions in the United States and internationally.

Depending on the project, location and workforce structure, our teams can support talent sourcing, workforce planning, employment-model discussions, onboarding, payroll coordination and workforce mobilisation.

Whether you are recruiting one specialist or building a project team, we can help you assess the workforce setup and coordinate the next steps for hiring.

*The content provided is for general informational purposes only and is based on publicly available sources deemed trustworthy at the time of writing. However, we do not guarantee its accuracy, completeness, or ongoing relevance. For the most up-to-date guidance or advice tailored to your specific situation, please reach out to our team directly*