US RECRUITMENT EXPERITISE

The second quarter of 2024 brought a nuanced landscape in state-level unemployment and job growth across the United States, according to recent data from the U.S. Bureau of Labor Statistics. 

Understanding these trends is crucial for recruitment firms aiming to navigate the dynamic job market effectively. Here’s a breakdown of the key insights from April, May, and June 2024. 

April 2024: A stable start with minor shifts 

In April, the national unemployment rate was stable at 3.9%, slightly higher than the previous year by 0.5 percentage points. The unemployment rates decreased in five states, increased in two, and remained stable in 43 states and the District of Columbia. Notably, North Dakota and South Dakota reported the...

Once you’ve entered the US market, you need to be aware of several important regulations to ensure compliance and fair hiring practices.

Why it’s important to understand employment regulations in the US

1. Compliance – failure to comply with employment laws and regulations can result in costly legal penalties, lawsuits, and reputational damage for recruitment companies.
2. Protection of reputation – violations of employment laws can tarnish a recruitment company’s reputation, leading to loss of trust from clients, candidates, and the public.
3. Client expectations – clients expect recruitment companies to follow best practices and legal requirements when sourcing and hiring candidates on their behalf.

What are some key regulations in the US to familiarize yourself with...

What is Payroll Tax? 

Payroll tax refers to the taxes employees and employers pay on wages, tips, salaries, commission, bonuses and also some taxable cash equivalent benefits that may be awarded to an employee (such as immediately accrued stock grants, employee incentive trips, per diem above the IRS limit, and much more). These taxes are implemented at the federal, state, and local level. 

Types of Payroll Tax

Federal payroll taxes include contributions to Social Security and Medicare, collectively known as the Federal Insurance Contributions Act (FICA) tax. These are labeled as MedFICA and FICA on....

Unemployment levels in certain regions provide valuable insights that help recruitment businesses make informed decisions about supply of labor, competition they may be facing, broader economic trends and strategic planning.

So far in 2024, the US recorded unemployment rates of 3.7% in January and 3.9% in February, and 3.8% in March. Job creation exceeded expectations in January and February but failed to meet projections in March.

January 2024

In January, the national unemployment rate held steady at 3.7 percent, mirroring the figures from January 2023. However, the state-level data revealed...

Health insurance in the US 

The language of health insurance can be hard to understand. However, it’s becoming more and more important for health care consumers to have at least a basic knowledge of the industry’s terminology. We previously covered some of the most common health insurance terms you’ll come across in the US, whether you’re employing staff or are the one using the insurance as a patient.  

Under the Affordable Care Act (ACA), most Americans are required to have health insurance coverage, either through their employer, a government program like Medicare or Medicaid, or by purchasing a plan through the health insurance marketplace. Many employers offer health insurance as part of their employee benefits package.  

Moreover, access to employer-sponsored health insurance can be a significant factor for individuals when choosing where to work, and it helps employers attract and retain talented employees. 

Types of health care provider arrangements...

What is workers’ compensation?  

Workers’ compensation in the United States is a primarily state-based system which provides cash benefits or medical care for workers who suffer an injury or become ill due to their workplace.  

Some form of workers’ compensation is typically compulsory for almost all employers in most states except for Texas as of 2018. 

The workers’ compensation system is administered on a state-by-state basis, with a state governing board overseeing varying public/private combinations of workers’ compensation systems. 

In a majority of states, workers’ compensation is solely provided by private insurance companies. The cost of this insurance is called a premium.  

The federal government does offer its own workers’ compensation insurance for federal employees. 

What types of benefits does workers’ compensation cover? ...

Leave policies for new parents in the United States have been a topic of debate and discussion for years. The US does not have a federally mandated paid parental leave policy, leaving millions of new parents and their employers to navigate a patchwork of state and employer-specific benefits.  

The Family and Medical Leave Act 

The Family and Medical Leave Act (FMLA) signed into law in 1993 requires employers to provide up to 12 weeks of unpaid leave for several medical conditions, as well as the birth of a baby. 

Maternity Leave vs Paternity Leave vs Parental Leave 

Maternity, paternity and parental leave all refer to leave taken by parents to care for a newborn, newly adopted, or foster child. However, parental leave as a term has been growing in popularity for its gender-neutral approach. 

If an employer offers maternity leave, they must offer...

What is minimum wage? 

Minimum wages have been defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract. 

Who governs minimum wage?  

In the US, the Fair Labor Standards Act (FLSA) gives you the right to a minimum wage. The Department of Labor’s Wage and Hour Division enforces these rights. 

The first U.S. minimum wage was instituted under the Fair Labor Standards Act of 1938. Since then, Congress has raised the minimum wage 22 times and changed who is covered under it. 

On a federal level minimum wage...

What is a 401(k) plan? 

A 401(k) plan is an employer-sponsored, personal pension (savings) account, provided by numerous American employers, offering tax benefits to participants. It’s named after a section of the U.S. Internal Revenue Code (IRC).  

As an employee when you sign up for your employer’s 401(k) plan, you agree to have a percentage of each paycheck directly deposited into your own personal 401(k) account. The employer may match part or all of that contribution. 

How 401(k) works...

What is Overtime? 

Overtime refers to the additional hours worked by an employee beyond their regular working hours as defined by their employer. Overtime pay is the additional compensation that employees receive for working those hours.  

In the United States, overtime pay is governed primarily by the Fair Labor Standards Act (FLSA), which is a federal law administered by the Department of Labor (DOL).  

The Fair Labor Standards Act (FLSA)  

According to the FLSA all non-exempt employees are entitled to overtime pay for hours worked beyond 40 in a given workweek. The act also states that overtime pay rate across the country should not be less than 1.5 times the regular hourly rate of an employee. 

The FLSA does not require...

What is PTO? 

Paid time off (PTO) is often part of the benefit package employees receive from their employer in the US. It allows employees to take time off work and still receive their regular pay. 

PTO vs Vacation 

If you’re coming from outside the US, the terms vacation and PTO may get mixed up. PTO is any time an employee is getting paid while away from work, whether that’s paternal leave, sick leave or disability leave, while vacation is a period specifically designed for leisure. 

All vacation would class as PTO, but not all PTO would be used for vacation. 

PTO regulations in the US 

The first and most important thing to note about PTO in the US is...

What is sick leave? 

Sick leave is time that an employee can take off if they, or a family member, are sick. There are two types: paid and unpaid sick leave. With paid sick leave the employee receives the same wages as if they worked. 

Regulations in the US 

If you recruit in the US, it’s important to remember that, in many aspects, it functions more like 50 individual countries. Therefore, there are federal, state and city regulations to keep in mind when you do business in the states.   

Compliance with Federal Law 

The US requires unpaid leave for serious illnesses through the...

With the US accounting for almost a third of the global staffing market’s total revenue, it presents significant opportunities for those looking to expand their operations internationally. The American recruitment market is particularly attractive to ambitious overseas recruitment firms, as more businesses recognize its potential. 

However, entering a market of this size also comes with numerous challenges, particularly in navigating the legal landscape. Each of the 50 states has its own set of laws and regulations concerning worker classification, employment, taxes, and benefits.  

Here are some potential pitfalls to avoid...

In today’s interconnected world, building and managing a global workforce is essential for many businesses. Employer of Record (EOR) and Professional Employer Organization (PEO) partners play a crucial role in helping companies manage teams across the world. But what sets these two solutions apart, and which one does your business need?  

EOR vs PEO Overview 

An EOR, takes on all employer-related responsibilities for businesses. Unlike a PEO, an EOR becomes the legal employer of the workforce. This means that an EOR handles complete HR-related tasks, including onboarding, payroll, taxes, compliance, benefits administration, and timesheets. Working with an EOR gives businesses the flexibility to hire talent anywhere in the world without the need for business registration in each location. 

A PEO acts as a co-employer, partnering with businesses to provide comprehensive HR services. These services include...