Managing employee relocations into the United States requires navigating one of the world’s most complex labor-law environments.
Unlike many countries with centralized employment codes, the U.S. operates through a dual system: federal labor laws applicable nationwide, combined with state-specific and even city-specific regulations.
For HR leaders, relocation specialists and global mobility teams, understanding these distinctions is critical to ensuring compliance, minimizing risk and supporting employees effectively during assignments.

Below is a strategic overview of the U.S. labor-law essentials every global mobility team should consider into their 2026 relocation planning.

Overview to labor laws in the US

Labor laws in the United States, including the foundational Fair Labor Standards Act (FLSA), are designed to protect the rights of workers and establish clear responsibilities for employers. These laws regulate the relationship between employers and employees, setting standards for minimum wage, overtime pay, job safety, and protections for workers with disabilities.
The FLSA, enforced by the Department of Labor, establishes federal rules that all businesses must follow, ensuring fair pay and safe working conditions across the workplace.
The U.S. compliance model: Federal foundation vs state-led variation

The core principle of labor laws in the US is that employers must comply with both federal laws and the laws of the state (and often city) where the employee physically works. When standards differ, the provision more beneficial to the employee applies.

• Federal laws: Set nationwide minimums for wages, overtime, safety, and non-discrimination (e.g., Fair Labor Standards Act, Occupational Safety and Health Act).
• State & local laws: Frequently exceed federal standards, mandating higher minimum wages, paid leave, specific break periods, and broader anti-discrimination protections.

Strategic insight for mobility: A relocation from Texas to California is more than a change of address, it represents entry into a fundamentally different regulatory environment. Mobility policies must account for state-specific labor, wage, and employment protections. MovePlus advises clients to conduct a state-law differential analysis as a core component of every relocation feasibility assessment, ensuring compensation and policy alignment from day one.

USA also has state specific labor laws.

Southern states

• Texas
• Florida
• Georgia
• Virginia
• Kentucky
• Florida

Western states

• Arizona
• Utah
• Colorado
• Washington (state)

Midwestern states

• Ohio
• Indiana
• Wisconsin
• Minnesota

Mideastern states

• Michigan

Northeastern states

• Massachusetts

Minimum wage across USA

The federal minimum wage remains $7.25 per at the time of writing.However, this is largely a benchmark, as over 30 states and numerous cities mandate higher rates.
High-cost jurisdictions: States like California, Washington, and New York have minimum wages approaching or exceeding $15-16 per hour. Cities such as Seattle and New York City set rates even higher.
Strategic consideration: When structuring compensation for international assignees, organizations promote equity while supporting compliance across jurisdictions by aligning salary frameworks with the prevailing wage requirements of the worksite location, rather than relying on home country or headquarters benchmarks.

Overtime rules: Federal baseline vs state variations

Under federal law, overtime is 1.5× regular pay for 40+ hours/week (non-exempt workers only). However, certain states have strict rules for overtime work such as:

• California: Requires overtime after 8 hours in a day and double-time after 12 hours.
• Alaska & Nevada: Overtime rules tied to daily hours.

Misclassifying an employee as “exempt” from overtime is a leading source of litigation and DOL penalties. The duties test is rigorous and must be reviewed for each relocated role.

The MOVEPLUS™ platform provides a centralized environment for capturing and maintaining key employee and assignment data, creating a reliable foundation for informed compliance review. MovePlus supports integration with existing HRIS systems, providing structured data visibility and cross-functional collaboration, helping HR teams assess employee classification and local labor considerations with greater consistency and confidence.

Leave & benefits

There is no federal mandate for paid sick leave or vacation. This gap is filled by a growing number of state and local ordinances. Mandated paid leaves include the states of California, New York, Massachusetts, Washington, Colorado, amongst others. Requirements vary by accrual rates, usage reasons, and carryover policies.
Global mobility teams must ensure PTO policies comply with the specific state or city where the employee works.

At-will employment

Most U.S. employment relationships operate under the principle of “at-will” employment, meaning either the employer or the employee may end the employment relationship at any time, with or without notice.
Exceptions include:

• Written contracts
• Collective bargaining agreements
• Non-retaliation protections
• Anti-discrimination laws
• Public policy exceptions in some states

HR teams should clearly explain how it operates to international assignees, including how it interacts with notice periods, severance practices, and local state-level protections.

Final paychecks & termination rules

Rules governing final paychecks and payout of accrued benefits are strictly state-defined.

• Immediate payment: Required in states like California upon termination.
• Next pay cycle: Standard in states like New York and Texas.
• Vacation payout: Mandatory in some states (e.g., California), discretionary in others.

What does this mean for business with a global team? These timelines directly impact offboarding during assignment conclusions or early repatriation, affecting cash flow and employee experience.

Expanding protections: Beyond federal discrimination laws

Federal law prohibits discrimination based on race, colour, religion, sex, national origin, age, disability, and genetic information. Many states significantly expand these categories to include:

• Sexual orientation & gender identity
• Marital or family status
• Military status
• Off-duty conduct
• Weight/height (e.g., Michigan, New York City)

Mobility teams must ensure that relocation policies, benefits frameworks, and employee-facing guidance are written and applied in a way that reflects the employment protections and eligibility rules of the destination state.
MovePlus works with organizations to design and operationalize policies that are clear, scalable, and aligned with destination specific considerations.

Independent contractor classification

Misclassification is a top enforcement priority for the DOL and state agencies. Federal tests include:

• Economic-reality test
• Common-law control test

At the state level, classification standards may be stricter than federal rules, creating additional risk—particularly when workers relocate or perform services across state lines.
California’s ABC test is one of the most restrictive in the U.S.

Immigration and work authorization

Effective labor law compliance is inseparable from immigration compliance. This includes:

• Form I-9 verification
• E-Verify (mandatory in some states)
• Work visa restrictions
• Employer sponsorship responsibilities
• State identity-documentation requirements

For complex jurisdictions, organizations benefit from engaging relocation management providers that coordinate with tax and employment law providers to ensure comprehensive coverage, transforming relocation from a series of logistical tasks into a strategically compliant transition.

Mandatory workplace postings

Employers must display federal and state labor law posters in a conspicuous location. This requirement extends to remote workforces, where digital access to postings is now a standard compliance practice.

• Federal posters: Includes FLSA, OSHA, EEO, FMLA and USERRA.
• State posters: Covers minimum wage, paid leave, workers’ compensation and safety.

Employers should provide bilingual posters if needed and ensure all posters are current with the latest legal changes.

Strategic compliance framework: Key takeaways for 2026

To strengthen U.S. labor law compliance as a foundation for strategic workforce planning, HR and global mobility teams should institutionalise these practices:

• Adopt a location-first policy: Develop relocation packages against the specific state and city of the new worksite, not just federal guidelines.
• Integrate classification checks: Include exemption status and overtime rule considerations within the relocation approval workflow.
• Localise leave & benefits: Align paid time off and leave policies to meet applicable state and city requirements alongside corporate policy standards
• Secure digital posting distribution: Implement a system to provide legally required postings to all employees, regardless of work location.
• Conduct pre-migration compliance audits: Treat regulatory alignment as a core pillar of relocation feasibility, identifying and mitigating risks before the move.

In the U.S., effective global mobility is inseparable from precise labor law compliance. A decentralised, employee-protective legal landscape demands a proactive, location-intelligent approach.

MovePlus: Your partner in strategic compliance

Navigating this complexity alone diverts HR teams from strategic priorities. MovePlus provides the framework and technology to seamlessly integrate compliance into the mobility lifecycle.

The MOVEPLUS™ Platform centralizes mobility information, documents decisions, and supports coordination with specialist legal, tax, and immigration partners as requirements change by location and move type.
Through its consultancy approach, MovePlus supports the development of adaptable relocation and benefits policy frameworks that balance consistency with destination specific considerations, protecting the organization while supporting a well-managed assignee experience.

Are your mobility policies built for the complexity of the U.S. market in 2026? Contact MovePlus for a strategic review of your programme’s compliance readiness.