US Employment Law for Turkish Employers 2026: Hiring, Managing, and Separating US Employees

US employment law is one of the most significant compliance challenges for Turkish companies establishing US operations. The US framework is fundamentally different from Turkish labor law in several key respects — and violations can result in substantial liability, including class action lawsuits, regulatory investigations, and reputational damage.

The foundational principle of US employment law is "at-will" employment: either the employer or the employee can terminate the employment relationship at any time, for any reason (or no reason), without advance notice — unless a contract or law provides otherwise.

What at-will means for Turkish employers:

• No statutory severance requirement for at-will terminations (unlike Turkish law)
• No requirement to provide advance notice (unless contractually agreed)
• No requirement to justify terminations to a government authority

What at-will does NOT mean:

• Employers cannot terminate for illegal reasons (discrimination, retaliation, etc.)
• Contractual employees have the rights specified in their contracts
• Employees in states with implied contract exceptions may have additional protections

US federal and state anti-discrimination laws are extensive and rigorously enforced. Turkish employers must understand:

Title VII of the Civil Rights Act: Prohibits discrimination based on race, color, religion, sex, and national origin in all aspects of employment. Applies to employers with 15+ employees.

Age Discrimination in Employment Act (ADEA): Prohibits discrimination against employees 40 and older. Applies to employers with 20+ employees.

Americans with Disabilities Act (ADA): Prohibits discrimination against qualified individuals with disabilities and requires reasonable accommodation. Applies to employers with 15+ employees.

Pregnancy Discrimination Act: Prohibits discrimination based on pregnancy, childbirth, or related medical conditions.

Equal Pay Act: Requires equal pay for equal work regardless of sex.

New York has some of the most employee-protective laws in the US:

• New York Human Rights Law: Applies to employers with 4+ employees; covers all protected classes under federal law plus additional categories
• NYC Human Rights Law: Applies to employers with 4+ employees in NYC; one of the broadest anti-discrimination laws in the country
• Salary history ban: NYC prohibits asking about salary history
• Caregiver status: NYC prohibits discrimination based on caregiver status
• Freelancer protection: NYC's Freelance Isn't Free Act requires written contracts for freelance work over $800

Turkish employers must:

• Train managers on anti-discrimination requirements
• Implement anti-harassment policies and complaint procedures
• Document employment decisions with legitimate, non-discriminatory reasons
• Respond promptly and appropriately to discrimination complaints

The FLSA establishes:

• Federal minimum wage: $7.25/hour (but most states and cities have higher minimums)
• Overtime: Non-exempt employees must receive 1.5x their regular rate for hours over 40 per week
• Exempt vs. non-exempt: Certain employees (executives, administrators, professionals, outside salespeople) are exempt from overtime if they meet salary and duties tests

New York minimum wage (2026): $16.50/hour in NYC and surrounding counties; $15.50/hour in the rest of New York State.

One of the most significant employment law risks for Turkish employers is misclassifying employees as independent contractors. The IRS, DOL, and state agencies apply different tests, but the consequences of misclassification are severe:

• Back taxes and penalties
• Unpaid overtime and benefits
• Class action lawsuits

Turkish companies that engage US workers as "contractors" should carefully analyze whether those workers are actually employees under applicable tests.

New York has extensive paid leave requirements:

• New York Paid Family Leave: Up to 12 weeks of paid leave for bonding with a new child, caring for a seriously ill family member, or qualifying military exigencies
• NYC Paid Safe and Sick Leave: Up to 56 hours of paid sick/safe leave per year for employers with 100+ employees
• New York State Paid Sick Leave: Up to 56 hours of paid sick leave per year for employers with 100+ employees

The FTC's 2024 rule banning most non-compete agreements was subject to ongoing litigation in 2025–2026. Turkish employers should monitor the status of this rule, as it could significantly affect the enforceability of non-compete agreements with US employees.

New York courts apply a reasonableness test to non-compete agreements, considering:

• Whether the restriction is necessary to protect a legitimate business interest
• Whether the restriction is reasonable in time and geographic scope
• Whether the restriction imposes an undue hardship on the employee

New York has historically been skeptical of broad non-compete agreements. Turkish employers should work with US employment counsel to draft enforceable restrictive covenants.

For at-will employees, Turkish employers can terminate without cause. However:

• Document the legitimate business reason for termination
• Ensure the termination is not retaliatory or discriminatory
• Follow any contractual notice requirements
• Provide required final pay (timing varies by state)

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100+ employees to provide 60 days' advance notice of plant closings or mass layoffs. New York has a state WARN Act with broader coverage (50+ employees).

No federal or New York law requires severance pay. However, severance agreements are commonly used to obtain a release of claims from departing employees.

Turkish employers with US employees should maintain an employee handbook covering:

• At-will employment statement
• Anti-discrimination and anti-harassment policies
• Complaint procedures
• Leave policies (FMLA, paid sick leave, etc.)
• Wage and hour policies
• Social media and technology use policies
• Confidentiality and IP assignment

Our employment attorneys advise Turkish employers on US employment law compliance, including hiring practices, employment agreements, non-compete drafting, discrimination prevention, wage and hour compliance, and termination procedures. We help Turkish companies build US HR frameworks that minimize legal risk.

This article is for informational purposes only and does not constitute legal advice. Employment law is complex and varies by state and locality; please consult qualified employment counsel for advice specific to your situation.