September 26, 2025

The Fair Labor Standards Act (FLSA) is the cornerstone federal law governing wages, overtime, recordkeeping, and child labor in the United States. For international companies expanding to the US, understanding FLSA compliance is critical for avoiding costly violations—with the Department of Labor recovering $149.9 million in back wages for 125,301 workers in 2024 alone, and individual cases reaching tens of millions in penalties.

The Federal Insurance Contributions Act (FICA) is a critical federal payroll tax that funds Social Security and Medicare programs, requiring both employers and employees to contribute 7.65% each (15.3% total) on wages up to specific limits. For international companies expanding to the US, understanding FICA compliance is essential—the IRS collected $120.2 billion in unpaid employment tax assessments in 2024, with the Trust Fund Recovery Penalty holding business owners personally liable for 100% of unpaid taxes.