US Workforce Lexicon
Running a shift-based team in the United States means working with two layers of rules at once. Federal law — chiefly the Fair Labor Standards Act — sets the floor for minimum wage, overtime, and timekeeping. State and city law then builds on top of it, and often in very different ways: meal breaks, pay stubs, final paychecks, and scheduling notice can all change the moment you cross a state line.
This lexicon collects the terms US managers actually meet — on payroll reports, in handbooks, and in conversations with their teams — and explains each one in plain language: what it means, who sets the rules, and what it looks like in a normal workweek. It is a general guide, not legal advice; for decisions about your own workplace, check with your state labor department or a qualified adviser.
Core concepts
- Minimum wage — the lowest hourly rate an employer may pay — a federal floor that many states and cities raise
- Overtime pay — time and a half after 40 hours in a workweek for non-exempt employees under the FLSA
- Pay stub — the wage statement that itemizes hours, earnings, and deductions — required by state law, not federal
- Probationary period — an introductory period for new hires — company convention in the US, not a legal status
- Night shift differential — extra pay for night hours — set by employer policy or union contract, not required by federal law
- Federal holidays — the holidays Congress sets for federal workers — private employers aren't required to pay extra for them
- Severance pay — pay offered when employment ends — a matter of contract or policy, not required by US law
- Payroll taxes — the FICA, unemployment, and income-tax-withholding amounts paid alongside every paycheck
- Timekeeping requirements — the FLSA duty to keep accurate records of hours worked and wages paid for non-exempt employees
- Meal and rest breaks — break rules are state law in the US — federal law only says when short breaks must be paid
US-specific terms
- FLSA (Fair Labor Standards Act) — the 1938 federal law behind minimum wage, overtime, timekeeping, and child labor rules
- At-will employment — the US default rule that either party can end employment at any time, with important exceptions
- Tip credit — the FLSA rule letting employers count tips toward minimum wage — banned in several states
- FMLA (Family and Medical Leave Act) — up to 12 weeks of unpaid, job-protected leave for family and medical reasons at covered employers
- Fair Workweek laws — city and state predictive-scheduling rules: advance notice, predictability pay, and rest between shifts
- W-2 vs 1099 — employee or independent contractor — the classification that decides taxes, overtime, and protections
- Form I-9 — the employment eligibility verification every US hire must complete within the first three days
- Workers' compensation — state-mandated, no-fault insurance covering medical care and lost wages for work injuries
- PTO (paid time off) — vacation, sick, and personal time — no federal mandate, but state sick-leave laws are spreading
- ACA full-time equivalent — the ACA's 30-hour full-time line and the FTE math that decides which employers must offer coverage
- The 7-minute rule — the FLSA quarter-hour rounding convention — 7 minutes down, 8 minutes up, neutral over time
- Reporting time pay — show-up pay owed in some states when staff report for a shift and are sent home early
- Split shift premium — extra pay owed in a few states when a workday is split by a long unpaid gap between shifts
- Final paycheck laws — state deadlines for the last paycheck after quitting or termination — from same-day to next payday