US HR compliance, explained for software buyers

Headcount thresholds at a glance

Pay transparency in job posts

A growing number of states and cities require employers to include salary ranges in job postings or share them on request. Early adopters included Colorado, California, Washington, and New York, with more following. Rules differ on employer size, remote roles, and what counts as a posting. Your ATS and compensation tools should make adding ranges automatic.

FLSA overtime and classification

Non-exempt employees must be paid at least the federal minimum wage and overtime at one and a half times their regular rate for hours over 40 in a workweek. To be exempt, most employees must meet both a salary test and a duties test. Misclassifying employees as exempt or as independent contractors is one of the most common and costly wage and hour mistakes.

ACA employer reporting

Applicable large employers must offer affordable, minimum value health coverage to full-time employees or risk a penalty, and must file Forms 1094-C and 1095-C. Full time under the ACA means an average of at least 30 hours per week.

FMLA and state paid leave

The FMLA provides up to 12 weeks of unpaid, job-protected leave for eligible employees of covered employers. A growing number of states run paid family and medical leave programs, and many states and cities require paid sick leave. Leave software should track all of these at once.

Form I-9 and E-Verify

Every new hire needs a completed Form I-9. Keep forms for three years after hire or one year after employment ends, whichever is later. E-Verify is required in some states and for some federal contractors.

AI in hiring decisions

New York City requires bias audits and candidate notices for automated employment decision tools. Other jurisdictions are developing rules. Federal anti-discrimination law applies to AI-assisted decisions as well.

Primary sources

Frequently asked questions