September 26, 2025

The Fair Labor Standards Act (FLSA) is the core federal law governing wages, overtime, recordkeeping and child labour in the US. For international companies expanding to the US, understanding FLSA compliance is essential to avoid back pay claims, penalties and Department of Labor investigations.

The Federal Insurance Contributions Act (FICA) is the federal payroll tax that funds Social Security and Medicare. Employers and employees each pay 7.65% on wages, with Social Security capped each year. Getting it wrong matters: the Trust Fund Recovery Penalty can make business owners personally liable for unpaid taxes.