Employment contracts
in USA.

SALARY PAYMENT IN United States Dollar (USD, $)

CONTRACT LANGUAGES English

PAYROLL TAX Varies per state

PAYROLL CYCLE Bi-weekly or weekly

TIME TO HIRE 12 hours

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United States

Standard employment contract in USA: Open-ended contract

The most common form of employment contracts offered in the United States are open-ended contracts, otherwise known as ‘unlimited’ or ‘permanent’ contracts. This form of employment contract runs for an indefinite period until it is terminated.

The benefit of using an open-ended contract is that this form of employment contract suggests job security and a long-term commitment to the employee.

Keep in mind that there are no minimum requirements for employment contracts in the USA. Most employer/employee relationships in the US are considered ‘at will’, meaning the employment relationship is terminable by either party, without the need to provide notice or give just cause.

Alternative employment contract in USA: Fixed-term

Fixed-term contracts, otherwise known as ‘limited’ or ‘temporary’ contracts are used by some employers in the USA, but tend to be used when employment relationships are project-based.

Although fixed-term contracts can be harder to terminate than open-ended contracts, they do not offer the same sense of job security and commitment to employees.

Are there other types of employment contracts in USA?

The rise in the popularity of remote working in the United States has led to an increase in the use of casual employment contracts. In other countries, casual contracts are also known as zero-hours contracts as they often do not guarantee a regular working pattern.

Casual employment contracts usually guarantee a minimum number of hours but do not specify when the hours will be worked.

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Your business can easily hire employees in USA without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What are the main differences between the standard contract and the alternative contract in USA?

The primary difference between the open-ended and fixed-term contracts is permanence: open-ended contracts employ on a permanent basis, whereas fixed-term contracts have a defined end date and must be renewed.

Which USA employment contract is right for me?

The type of employment contract you use will depend on your hiring needs and objectives. We offer open-ended employment contracts as standard. Should you partner with Horizons’ USA PEO, our team of local experts will assist you in drafting strong employment contracts that are fully compliant with local regulations.

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