How to hire your first employee
The short answer
To hire your first employee, get a free Employer Identification Number (EIN), register with your state for income tax withholding (where it applies) and unemployment insurance, arrange workers' compensation coverage, put the offer in writing, have the employee complete Form I-9 and Form W-4, report the new hire to your state, put up the required posters, and set up payroll that meets your state's minimum wage and payday rules.
General information, not legal advice. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Every rule on this page links to its official source.
The order to do things in: federal and state employer registration, workers' compensation, the offer letter, first-day paperwork, new hire reporting, posters and payroll, with the official page for each step and your state's minimum wage and payday rules.
Pick the right document
Job offer letterJob, pay, schedule and start date in writingStep 5New hire paperwork checklistI-9, W-4, state forms and the new hire reportSteps 6 to 8Employee onboarding checklistThe first day, first week and first monthFirst day and first week
What federal investigators found, by industry
Restaurants and food serviceFederal investigators found minimum-wage back wages in 21% of restaurants and food service violation cases; the median amount owed in a case with back wages was $4,888.Based on 10,360 federal cases, FY2021-FY2025.RetailFederal investigators found minimum-wage back wages in 13% of retail violation cases; the median amount owed in a case with back wages was $3,775.Based on 2,959 federal cases, FY2021-FY2025.ConstructionFederal investigators found minimum-wage back wages in 5% of construction violation cases; the median amount owed in a case with back wages was $7,327.Based on 5,799 federal cases, FY2021-FY2025.Health care (incl. home care)Federal investigators found minimum-wage back wages in 11% of health care (incl. home care) violation cases; the median amount owed in a case with back wages was $7,316.Based on 4,822 federal cases, FY2021-FY2025.Child careFederal investigators found minimum-wage back wages in 12% of child care violation cases; the median amount owed in a case with back wages was $1,801.Based on 755 federal cases, FY2021-FY2025.
Enforcement data is not a violation rate: it shows what federal investigators found in the cases they chose to open (FY2021-FY2025). Source: U.S. Department of Labor, Wage and Hour Division and OSHA enforcement data, compiled by InterObservers Employer Desk.
Steps
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What to say in the meeting
The offer call is short. Say the offer, then put everything in writing the same day so the details match.
Offer“We would like to offer you the [job title] position, starting on [date].”
Pay and schedule“The pay is [rate] per [hour / year], paid [weekly / every two weeks], and the schedule is [days and hours].”
Conditions“The offer depends on [the background check / references], and on the first day you will fill in the employment eligibility and tax forms.”
Next step“I will email you the offer letter today. Could you reply by [date] to let me know?”
Leave out
- Promises about future raises, promotions or job security you are not ready to put in writing
- Questions about age, pregnancy, family plans, religion, disability or national origin
- Asking for specific immigration documents before the employee has accepted the job
- Starting work before the pay rate and schedule are agreed in writing
5 common mistakes
- Paying before registering. Running the first payroll without an EIN and state accounts means late tax deposits and catch-up filings. The SBA's hiring guide puts the EIN and state tax IDs first.
- Missing the new hire report. It is a separate step from payroll. The Office of Child Support Services says federal law requires employers to report basic information on new and rehired employees within 20 days of hire to the state where the new employees work.
- Completing Form I-9 late. USCIS says the employer must complete and sign Section 2 within 3 business days of the first day of work for pay. Put it on the first-day checklist.
- Calling an employee a contractor. Paying someone as an independent contractor when they work as an employee creates tax and wage problems later. The IRS hiring page covers what to collect from each employee.
- Setting the pay schedule without checking the state. States set how often employees must be paid, and the rules differ. The Department of Labor's state payday table shows the differences; pick your state on this page for what we have verified.
Rules that matter in your state
State minimum wageChoose your stateRules with official sources
Choose your state above to see the rule we have verified, or check it with your state labor office.
How often you have to payChoose your stateRules with official sources
Choose your state above to see the rule we have verified, or check it with your state labor office.
- State minimum wage. The lowest hourly rate you can pay in your state, next to the federal rate.
- How often you have to pay. Weekly, every two weeks, twice a month or monthly, depending on the state and sometimes the type of job.
Verified so far, by state
Each rule below was checked against official sources. States not listed have not been verified yet for these topics; check them with the state labor office.
| State | Rule and law | Verified |
|---|---|---|
| Alaska | State minimum wage: Alaska minimum wage is $14.00 per hour (from July 1, 2026). (Alaska Wage and Hour Act (U.S. DOL WHD State Minimum Wage Laws table)) | Sep 24, 2026 · 2 official sources |
| Alaska | How often you have to pay: Employers must establish monthly or semi-monthly pay periods at the employee's election; monthly pay periods may be agreed in an annual initial contract of employment. (U.S. DOL WHD State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| Arizona | How often you have to pay: Employers must designate two or more fixed paydays in each month, not more than 16 days apart. (U.S. DOL WHD State Payday Requirements, footnote 3) | Sep 24, 2026 · 2 official sources |
| Arkansas | State minimum wage: Arkansas minimum wage is $11.00 per hour for employers with 4 or more employees. (Arkansas Minimum Wage Act (U.S. DOL WHD State Minimum Wage Laws table)) | Sep 24, 2026 · 2 official sources |
| California | State minimum wage: California minimum wage is $16.90 per hour for all employers (effective January 1, 2026); higher industry-specific or local minimums may apply. (California minimum wage (U.S. DOL WHD State Minimum Wage Laws table)) | Sep 24, 2026 · 2 official sources |
| California | How often you have to pay: Most wages must be paid at least twice during each calendar month on days designated in advance as regular paydays (with some exceptions). (U.S. DOL WHD State Payday Requirements, footnote 10) | Sep 24, 2026 · 2 official sources |
| Colorado | State minimum wage: Colorado minimum wage is $15.16 per hour. (Colorado minimum wage (U.S. DOL WHD State Minimum Wage Laws table)) | Sep 24, 2026 · 2 official sources |
| Connecticut | State minimum wage: Connecticut minimum wage is $16.94 per hour (effective January 1, 2026). (Connecticut minimum wage (U.S. DOL WHD State Minimum Wage Laws table)) | Sep 24, 2026 · 2 official sources |
| Connecticut | How often you have to pay: Employers must pay weekly all wages due on a regular payday designated in advance; the Labor Commissioner may permit less frequent paydays on application. (U.S. DOL WHD State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| Delaware | State minimum wage: Delaware minimum wage is $15.00 per hour (effective January 1, 2025); if the federal rate is higher, the federal rate applies. (Delaware minimum wage (U.S. DOL WHD State Minimum Wage Laws table)) | Sep 24, 2026 · 2 official sources |
| Delaware | How often you have to pay: Employers must pay all wages on regular paydays designated in advance, at least once during each calendar month. (U.S. DOL WHD State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| District of Columbia | State minimum wage: District of Columbia minimum wage is $18.40 per hour beginning July 1, 2026; it is adjusted annually on July 1. (D.C. Minimum Wage Act (U.S. DOL WHD State Minimum Wage Laws table)) | Sep 24, 2026 · 2 official sources |
| District of Columbia | How often you have to pay: Employers must pay wages on regular paydays designated in advance, at least twice during each calendar month; bona fide administrative, executive and professional employees must be paid at least once per month, and an employer that by contract or custom has paid wages at least once each calendar month may continue to do so. (U.S. DOL WHD State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| Georgia | State minimum wage: Employers 6 or more: Georgia's state minimum wage is $5.15 per hour for employers of 6 or more employees, but most employers are covered by the federal FLSA and must pay the federal minimum wage instead. Flsa covered: Georgia employers subject to the federal Fair Labor Standards Act must pay the federal minimum wage of $7.25 per hour. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Hawaii | State minimum wage: Hawaii's minimum wage is $16.00 per hour. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Hawaii | How often you have to pay: Hawaii private employers must pay wages at least twice a month (semi-monthly); monthly pay is allowed only by employee election under a special procedure or by exception from the director. (State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023)) | Sep 24, 2026 · 2 official sources |
| Illinois | State minimum wage: Illinois' minimum wage is $15.00 per hour for employers of 4 or more employees (excluding family members), for employees 18 and older. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Illinois | How often you have to pay: Illinois employers must pay wages at least semi-monthly. (State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023)) | Sep 24, 2026 · 2 official sources |
| Indiana | State minimum wage: Indiana's minimum wage is $7.25 per hour for employers of 2 or more employees. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Iowa | State minimum wage: Iowa's minimum wage is $7.25 per hour. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Iowa | How often you have to pay: Iowa employers must pay most employees on a regular payday at least monthly (weekly, bi-weekly, semi-monthly or monthly are all allowed), no later than 12 days (excluding Sundays and legal holidays) after the end of the pay period. (State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023)) | Sep 24, 2026 · 2 official sources |
| Kansas | State minimum wage: Kansas' minimum wage is $7.25 per hour; the state law excludes employment subject to the federal FLSA. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Kansas | How often you have to pay: Kansas employers must pay all wages due at least once each calendar month, on regular paydays designated in advance. (State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023)) | Sep 24, 2026 · 2 official sources |
| Kentucky | State minimum wage: Kentucky's minimum wage is $7.25 per hour. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Kentucky | How often you have to pay: Kentucky requires at least semi-monthly paydays. (State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023)) | Sep 24, 2026 · 2 official sources |
| Maine | State minimum wage: Maine's state minimum wage is $15.10 per hour. (Maine minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Maine | How often you have to pay: Employers must pay wages at regular intervals not to exceed 16 days; this does not apply to members of the employer's family or to salaried employees. (Maine payday law (DOL WHD State Payday Requirements, footnote 8)) | Sep 24, 2026 · 2 official sources |
| Maryland | State minimum wage: Maryland's state minimum wage is $15.00 per hour. (Maryland minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Maryland | How often you have to pay: Employers must set regular pay periods and pay each employee at least once every 2 weeks or twice each month (bi-weekly or semi-monthly); administrative, executive or professional employees may be paid less frequently. (Maryland payday law (DOL WHD State Payday Requirements table)) | Sep 24, 2026 · 2 official sources |
| Minnesota | State minimum wage: Minnesota's state minimum wage is $11.41 per hour for all employers. (Minnesota minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Missouri | State minimum wage: Missouri's state minimum wage is $15.00 per hour. (Missouri minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Missouri | How often you have to pay: Corporations doing business in Missouri (and railroad operators) must pay wages at least semi-monthly; at the employer's option, executive, administrative and professional employees and employees paid on commission may be paid monthly. (Missouri payday law (DOL WHD State Payday Requirements table)) | Sep 24, 2026 · 2 official sources |
| Montana | State minimum wage: Montana minimum wage is $10.85 per hour for businesses with gross annual sales of more than $110,000. (Montana minimum wage (U.S. DOL WHD, State Minimum Wage Laws, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| Montana | How often you have to pay: If there is no established pay period or time when wages are due, the pay period is presumed to be semimonthly. (Montana payday (U.S. DOL WHD, State Payday Requirements, footnote 13)) | Sep 24, 2026 · 2 official sources |
| New Jersey | State minimum wage: New Jersey minimum wage is $15.92 per hour for most employees. (New Jersey minimum wage (U.S. DOL WHD, State Minimum Wage Laws, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| New Jersey | How often you have to pay: Wages must be paid at least twice during each calendar month on regular paydays designated in advance; bona fide executive, supervisory and other special classifications may be paid once per month. (New Jersey payday (U.S. DOL WHD, State Payday Requirements table row)) | Sep 24, 2026 · 2 official sources |
| New York | State minimum wage: Nyc long island westchester: New York minimum wage is $17.00 per hour in New York City, Nassau, Suffolk and Westchester counties. Rest of state: New York minimum wage is $16.00 per hour in the remainder of the state. (New York minimum wage (U.S. DOL WHD, State Minimum Wage Laws, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| New York | How often you have to pay: Clerical and other workers: Clerical and other workers must be paid at least twice per month (semi-monthly). Manual workers: Manual workers must be paid weekly (semi-monthly only with approval). (New York payday (U.S. DOL WHD, State Payday Requirements, footnote 17)) | Sep 24, 2026 · 2 official sources |
| North Carolina | State minimum wage: North Carolina minimum wage is $7.25 per hour. (North Carolina minimum wage (U.S. DOL WHD, State Minimum Wage Laws, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| North Dakota | State minimum wage: North Dakota minimum wage is $7.25 per hour. (North Dakota minimum wage (U.S. DOL WHD, State Minimum Wage Laws, updated July 1, 2026)) | Sep 24, 2026 · 2 official sources |
| North Dakota | How often you have to pay: Employers must pay at least once each calendar month on regular paydays designated in advance. (North Dakota payday (U.S. DOL WHD, State Payday Requirements table row)) | Sep 24, 2026 · 2 official sources |
| Ohio | State minimum wage: Large employer: Ohio employers with annual gross receipts of $405,000 or more must pay at least $11.00 per hour. Small employer: Ohio employers with annual gross receipts under $405,000 must pay at least $7.25 per hour. (U.S. DOL WHD, State Minimum Wage Laws (Ohio)) | Sep 24, 2026 · 2 official sources |
| Oklahoma | State minimum wage: Oklahoma employers with ten or more full-time employees at any one location, or with annual gross sales over $100,000, must pay at least $7.25 per hour. (U.S. DOL WHD, State Minimum Wage Laws (Oklahoma)) | Sep 24, 2026 · 2 official sources |
| Oklahoma | How often you have to pay: Oklahoma employees (except exempt employees) must be paid at least twice each calendar month (semi-monthly). (U.S. DOL WHD, State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| Oregon | State minimum wage: Employers in Oregon's standard counties must pay at least $15.55 per hour (current BOLI rate; see notes for the period). (U.S. DOL WHD, State Minimum Wage Laws (Oregon)) | Sep 24, 2026 · 2 official sources |
| Oregon | How often you have to pay: Oregon employers must keep regular paydays; paydays may not be more than 35 days apart (DOL table: monthly). (U.S. DOL WHD, State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| Pennsylvania | State minimum wage: Pennsylvania minimum wage is $7.25 per hour. (U.S. DOL WHD, State Minimum Wage Laws (Pennsylvania)) | Sep 24, 2026 · 2 official sources |
| Pennsylvania | How often you have to pay: Pennsylvania sets no fixed pay frequency: wages must be paid on regular paydays designated in advance by the employer. (U.S. DOL WHD, State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| South Carolina | How often you have to pay: South Carolina sets no fixed pay frequency: employers with 5 or more employees must notify employees in writing at hiring of the time and place of payment and pay on those terms. (U.S. DOL WHD, State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| South Dakota | State minimum wage: South Dakota minimum wage for non-tipped employees is $11.85 per hour (effective Jan. 1, 2026). (U.S. DOL WHD, State Minimum Wage Laws (South Dakota)) | Sep 24, 2026 · 2 official sources |
| South Dakota | How often you have to pay: South Dakota employers must pay all wages due at least once each calendar month or on regular agreed paydays designated in advance. (U.S. DOL WHD, State Payday Requirements) | Sep 24, 2026 · 2 official sources |
| Texas | State minimum wage: Texas minimum wage is $7.25 per hour; the state adopts the federal minimum wage rate by reference. (Texas minimum wage law (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
| Texas | How often you have to pay: Exempt employees: Employees exempt from FLSA overtime must be paid at least once a month. Non exempt employees: Employees who are not exempt from FLSA overtime must be paid at least twice a month on regularly scheduled paydays. (Texas Payday Law (U.S. DOL WHD state payday table, footnote 21)) | Sep 24, 2026 · 2 official sources |
| Utah | State minimum wage: Utah minimum wage is $7.25 per hour. (Utah Minimum Wage Act (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
| Utah | How often you have to pay: Wages must be paid at regular intervals no longer than semimonthly, on paydays designated in advance. (Utah Payment of Wages Act (U.S. DOL WHD state payday table)) | Sep 24, 2026 · 2 official sources |
| Vermont | State minimum wage: Vermont minimum wage is $14.42 per hour (employers of two or more employees), effective January 1, 2026. (21 V.S.A. § 384 (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
| Vermont | How often you have to pay: Employers must pay wages weekly unless, after giving notice to each employee, they choose to pay bi-weekly or semi-monthly. (21 V.S.A. § 342 (U.S. DOL WHD state payday table)) | Sep 24, 2026 · 2 official sources |
| Virginia | State minimum wage: Virginia minimum wage is $12.77 per hour, effective January 1, 2026. (Virginia Minimum Wage Act (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
| Virginia | How often you have to pay: High earners by agreement: Employees whose weekly wages total more than 150 percent of the Commonwealth average weekly wage may be paid monthly, upon agreement of each affected employee. Hourly employees: Employees paid on an hourly rate must be paid at least once every two weeks or twice in each month. Salaried employees: Salaried employees must be paid at least once each month. (Va. Code § 40.1-29 (U.S. DOL WHD state payday table, footnote 24); Va. Code § 40.1-29 (U.S. DOL WHD state payday table)) | Sep 24, 2026 · 2 official sources |
| Washington | State minimum wage: Washington minimum wage is $17.13 per hour in 2026. (Washington Minimum Wage Act (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
| Washington | How often you have to pay: Wages must be paid on an established regular payday at no longer than monthly payment intervals. (U.S. DOL WHD state payday table) | Sep 24, 2026 · 2 official sources |
| West Virginia | State minimum wage: West Virginia minimum wage is $8.75 per hour for employers with 6 or more non-exempt employees at one separate, distinct and permanent location. (W. Va. Code § 21-5C-2 (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
| Wisconsin | State minimum wage: Wisconsin minimum wage for adults is $7.25 per hour. (Wis. Stat. ch. 104 (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
| Wisconsin | How often you have to pay: Most employers must pay all wages earned at least monthly, with no longer than 31 days between pay periods. (Wis. Stat. ch. 109 (U.S. DOL WHD state payday table, footnote 25)) | Sep 24, 2026 · 2 official sources |
| Wyoming | State minimum wage: Wyoming state minimum wage is $5.15 per hour; employers subject to the federal FLSA must pay the federal minimum wage of $7.25 per hour. (Wyoming minimum wage law (U.S. DOL WHD state minimum wage table)) | Sep 24, 2026 · 2 official sources |
Questions people ask
What do I need to hire my first employee?
An Employer Identification Number, state employer accounts (unemployment insurance and, where there is a state income tax, withholding), workers' compensation coverage, a written offer, a completed Form I-9 and Form W-4, a new hire report to your state, the required posters and a payroll set up to your state's minimum wage and payday rules. The SBA's hiring guide lists the same federal steps.
How long do I have to report a new hire?
The Office of Child Support Services says: "Federal law requires employers to report basic information on new and rehired employees within 20 days of hire to the state where the new employees work." Some states set a shorter deadline or ask for more data, so check your state's new hire registry.
When does Form I-9 have to be completed?
USCIS says employees must complete and sign Section 1 no later than their first day of employment, and that the employer must complete and sign Section 2 within 3 business days of the date of hire (the first day of work for pay).
Is an EIN free?
Yes. The IRS says you never have to pay a fee for an EIN and warns about websites that charge for one.
Do I need workers' compensation for one employee?
Workers' compensation is set by each state, and the rules on who must be covered differ. The Department of Labor directs private-sector workers to their state workers' compensation board. Check your state's board before the first day.
What posters do I need to put up?
Federal posters depend on which laws cover your business. The Department of Labor's FirstStep Poster Advisor works out which federal posters apply; state posters come from your state labor office.
What is the minimum wage for my first employee?
It depends on your state and sometimes your city. The Department of Labor's state minimum wage page lists each state; pick your state on this page to see the rule we have verified, with its source.
Sources (14)
- IRS: Get an employer identification number
- IRS: Hiring employees
- IRS: About Form W-4, Employee's Withholding Certificate
- IRS: Publication 15, Employer's Tax Guide
- USCIS: Completing Section 1 of Form I-9
- USCIS: Completing Section 2 of Form I-9
- Office of Child Support Services (ACF): New hire reporting
- U.S. Department of Labor (ETA): State unemployment insurance tax contacts
- U.S. Department of Labor: Workers' compensation
- U.S. Department of Labor: FirstStep Poster Advisor
- U.S. Department of Labor: State minimum wage laws
- U.S. Department of Labor: State payday requirements
- SBA: Hire and manage employees
- U.S. Department of Labor: State labor offices
Checked Sep 24, 2026 · How we verify every rule · Report an error