The short answer: US employment is mostly at-will, meaning either party can usually end employment at any time without notice. There is no statutory annual leave, and the federal FMLA provides 12 weeks of job-protected but unpaid leave. Pay is subject to federal income tax (10% to 37%) plus FICA payroll taxes, and state income tax that varies enormously. Critically for WRS, both of our US hub states, Texas and Florida, levy no state income tax. The detail below matters whether you are hiring across the country or relocating for a role.
The USA is the world’s largest energy market and a core part of WRS’s footprint. Our US operation is headquartered in Tampa, Florida, with a major hub in Houston, Texas, the global capital of the oil and gas industry, and from those bases we support roles right across the nation. US employment law is unusual among the markets in this series because it operates on two levels at once, federal and state, and the state layer changes a great deal depending on where the role sits.
Figures reflect US federal law and tax rates as of 2026, with state-specific notes for Texas and Florida. Employment law varies significantly by state, and energy roles often involve multi-state considerations. This guide is informational and does not constitute legal advice.
How does employment work in the USA?
The defining feature of US employment is at-will employment, the standard in 49 states. Either the employer or the employee can end the relationship at any time, for any lawful reason, with no notice required on either side. There is no statutory severance and no statutory notice period, which often surprises professionals arriving from Europe, the Gulf or other more codified markets.
Written contracts are common for senior and specialist roles but are not legally required for most employees, who instead receive offer letters and are governed by company policy and federal and state law. Exceptions to at-will exist: an employer cannot terminate for an unlawful reason such as discrimination or retaliation, and union or executive contracts may set their own terms. In the energy sector, fixed-term and project-based contracts are common for contractors and offshore roles.
What are the standard working hours?
The standard full-time week is 40 hours. Under the federal Fair Labor Standards Act, non-exempt employees must receive overtime at one and a half times their regular rate for hours worked beyond 40 in a week. Many salaried professional, technical and managerial roles are classed as exempt and are not entitled to overtime. Offshore and rotational energy roles follow shift patterns set out in the contract rather than a standard onshore week.
How is pay and tax structured in the USA?
US pay is subject to several layers of tax. Federal income tax is administered by the IRS, with payroll taxes and state taxes layered on top. The 2026 picture:
- Federal income tax: progressive, from 10% up to 37%, with bracket thresholds and the standard deduction adjusted annually for inflation.
- FICA payroll taxes: Social Security at 6.2% on wages up to a 184,500 US dollar wage base for 2026, plus Medicare at 1.45% on all wages with an additional 0.9% on earnings above 200,000 US dollars. Employers match the 6.2% and 1.45%, for a combined FICA rate of 15.3%.
- State income tax: varies widely, from zero to over 13%. This is where location makes a real difference to take-home pay.
The hub advantage: both of WRS’s US hub states levy no state income tax. Texas and Florida are two of the handful of states with no personal income tax at all, so a professional based in Houston or Tampa keeps more of their salary than an equivalent earner in California or New York. For internationally mobile energy professionals weighing US offers, this is a genuine and often overlooked factor.
What benefits are typical, and what is legally required?
The US has a comparatively thin layer of statutory benefits and a heavy reliance on employer-provided ones, which is the opposite of most markets in this series. There is no federal requirement for paid annual leave, paid sick leave or paid maternity leave, although some states and cities mandate their own. In practice, competitive employers, and energy employers in particular, offer strong packages to attract talent.
Typical US benefit packages include employer-sponsored health insurance (the single most important benefit, since healthcare is largely employer-linked), a 401(k) retirement plan often with employer matching, paid time off combining vacation and sick days, dental and vision cover, and life and disability insurance. For candidates, the value and structure of the health plan and 401(k) match can matter as much as the base salary, so the whole package needs assessing.
How does termination and notice work?
Under at-will employment, no notice is legally required by either side, and there is no statutory severance pay. Employers may offer severance, often in exchange for a signed release of claims, but it is contractual rather than mandated. Final pay timing is set by state law and varies.
At-will is not unlimited. Termination must not be for an unlawful reason such as discrimination based on a protected characteristic, retaliation for protected activity, or breach of an employment contract. Federal anti-discrimination law applies through agencies such as the EEOC, and many states add their own protections. Documentation and consistent process remain the employer’s best protection against wrongful termination claims, even in an at-will state.
What leave are employees entitled to?
Family and medical leave
The federal Family and Medical Leave Act (FMLA) provides eligible employees up to 12 weeks of job-protected, unpaid leave in a 12-month period for the birth or care of a child, a serious health condition, or to care for an immediate family member, and up to 26 weeks for military caregiver leave. Crucially, FMLA leave is unpaid, and it only applies to employers with at least 50 employees within a 75-mile radius, where the employee has worked at least 12 months and 1,250 hours. Group health insurance continues during leave.
Paid leave varies by state
There is no federal paid family leave. A growing number of states run their own paid family and medical leave programmes funded by payroll contributions, but many do not. Neither Texas nor Florida operates a state paid family leave programme or mandates paid sick leave, so in both WRS hub states paid leave is whatever the employer chooses to offer. The Texas Workforce Commission confirms Texas employers follow the federal FMLA with no additional state leave law.
Annual leave and public holidays
There is no statutory minimum paid vacation in the US, which is unusual internationally. Paid time off is entirely a matter of employer policy, typically ranging from 10 to 20 days for professional roles and rising with service. The US observes federal public holidays such as New Year’s Day, Independence Day, Thanksgiving and Christmas, but private employers are not legally required to give paid time off for them, though most do.
What should employers and candidates know before hiring or relocating?
For employers, the key points are that at-will employment offers flexibility but anti-discrimination and wrongful-termination exposure is real, that benefit packages rather than statutory minimums are what attract talent, and that multi-state hiring means juggling different state tax, leave and final-pay rules. Compliance complexity rises sharply the moment a workforce crosses state lines, which is exactly where specialist support earns its keep.
For candidates, especially those relocating internationally, the absence of statutory leave and the employer-linked nature of healthcare are the biggest adjustments. Assess the full benefits package, not just salary, understand your visa and work authorisation position, and factor state income tax into any comparison between offers. A role in Houston or Tampa carries a real net-pay advantage over a higher-tax state that a headline salary alone will not show.
How WRS supports hiring and working in the USA
WRS combines global energy recruitment reach with a genuine US presence. Our headquarters in Tampa, Florida and our hub in Houston, Texas anchor a business that supports roles nationwide, backed by over 24 years of experience and candidates mobilised in more than 90 countries. For employers, our recruitment solutions and contractor services handle compliant hiring, mobilisation and payroll across multiple states. For candidates, our consultants and candidate information hub guide you through work authorisation, relocation and what to expect from a US package.
Explore our latest oil and gas, US construction and contract roles, submit your CV or get in touch to discuss hiring into or relocating to the United States.
FAQs
What is at-will employment in the USA?
At-will means either the employer or the employee can end employment at any time, for any lawful reason, with no notice or severance required. It is the standard in 49 states, with exceptions for unlawful reasons such as discrimination or retaliation, and for contractual arrangements.
Do you pay state income tax in Texas or Florida?
No. Texas and Florida are among the few US states with no personal state income tax, so professionals based in Houston or Tampa keep more of their salary than equivalent earners in high-tax states. Federal income tax and FICA still apply.
How much annual leave do US employees get?
There is no statutory minimum paid vacation in the US. Paid time off is set entirely by employer policy, typically 10 to 20 days for professional roles, rising with service. This is one of the biggest differences for professionals relocating from Europe or the Gulf.
What is FMLA and is it paid?
The Family and Medical Leave Act provides eligible employees up to 12 weeks of job-protected leave for family or medical reasons, but it is unpaid and only applies to employers with at least 50 employees within 75 miles. Some states add paid programmes, but Texas and Florida do not.
What payroll taxes apply in the USA?
FICA payroll taxes: 6.2% Social Security on wages up to 184,500 US dollars in 2026, plus 1.45% Medicare on all wages (an extra 0.9% above 200,000 US dollars). Employers match the main rates. Federal income tax of 10% to 37% applies on top, plus state income tax where the state levies one.
How can WRS help me work in or hire in the USA?
WRS is headquartered in Tampa with a Houston hub and supports energy hiring nationwide, offering compliant multi-state hiring and payroll for employers and full relocation support for candidates. Visit worldwide-rs.com or contact us to start.
