When engaging contingent workers in the United States through YunoJuno’s Employer of Record (EOR) solution, YunoJuno acts as the legal employer on your behalf. As part of YunoJuno’s Freelance Management System (FMS) and Contingent Workforce Management platform, this enables enterprises to compliantly engage and manage contractors globally - regardless of employment classification requirements in specific markets.

This article outlines how to onboard and manage US-based contingent workers engaged under a W-2 employment model. While the legal classification differs from independent contractors, these workers remain part of your broader contingent workforce strategy, managed within a single, scalable platform.

YunoJuno handles payroll, tax withholdings, statutory benefits, employment eligibility verification (I-9), and ongoing compliance with federal and state labour laws - supporting enterprise-grade governance, risk mitigation, and audit readiness.

To initiate a compliant W-2 engagement within YunoJuno’s FMS, hiring managers or authorised stakeholders must configure the assignment in line with US employment regulations. This ensures consistency with internal workforce policies while maintaining full compliance with local labour laws.

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and standards affecting employees. Covered non-exempt workers are entitled to a federal minimum wage of at least $7.25 per hour, and to overtime pay at a rate of at least time and a half the regular rate of pay for any hours worked over 40 in a workweek. Some states and localities set higher minimums that we apply instead.

To be exempt from FLSA minimum wage and overtime, employees generally need to pass three tests: the Salary Basis Test (fixed salary not reduced by quality/quantity of work), the Salary Level Test (minimum salary threshold - the federal default is $684/week, but many states have higher thresholds - see our FLSA Exemption Status article for the full state table), and the Duties Test (primary duties as executive, administrative, professional, or outside sales).

See our Engagement Types article for more information.

FLSA classification determines whether a worker is eligible for overtime. Job titles alone don't determine this - it depends on the employee's specific job duties and salary thresholds.

You can follow the infographic in our Understand Fair Labor Standards Act (FLSA) Exemption Status article to help you determine the status.

If you select Exempt, the contract will be held for review by the YunoJuno compliance team before it can be offered to the worker.

US employees must be paid promptly for any work they've completed, so we have a weekly payroll process that requires swift timesheet submission and approval.

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To end a contract early:

If the selected end date is within 3 business days, YunoJuno will contact you to confirm whether the contract can be terminated compliantly in accordance with local labor laws.

We handle the entire I-9 verification process via our platform and E-Verify. This is a strict legal requirement - the worker needs to complete it within three business days of their start date. If they don't provide the required documentation in this window, we'll notify you, and we'll legally need to suspend or terminate the assignment immediately.

You don't need to do anything regarding benefits. YunoJuno acts as the legal employer and provides eligible W-2 workers with health insurance and access to a 401(k). The worker is explicitly prohibited from participating in any of your own employee benefit or pension plans.

Yes. The worker signs an Employment Agreement that includes a clause stipulating all materials created in connection with the assignment are considered "works-for-hire" under the US Copyright Act and belong exclusively to the client.

For questions related to leave, benefits, and payroll, please email hr-support@yunojuno.com.

Please email hello@yunojuno.com, or get in touch via the in-platform chat.