The Unique Legal Risks Posed by the Remote Work Model

It’s unquestionable that the COVID-19 pandemic has drastically changed the way many people think about work. In particular, employers and employees alike have expanded their views on remote work. While more and more businesses are moving to a fully remote employment model, employers should familiarize themselves with the particular risks of work-from-home employees.

The Potential Risks of a Fully Remote Model

As many businesses make the switch to a full-time remote model, it’s essential that they update their employee handbooks to address the unique concerns of work-from-home employment. Particularly when transitioning former in-office employees to a fully remote environment, employers should ensure that their handbooks thoroughly cover these issues. 

For instance, the handbook should specifically detail how to clock in and clock out from home, how to maintain confidentiality and network security in a remote environment, and how to dress for and behave during a video conference. Time-keeping is of particular importance for nonexempt employees, so businesses should ensure that the clock in/clock out procedures are clearly communicated to avoid potential wage issues. Employers should also establish guidelines for when workers can be reimbursed for home office expenses and how workers’ compensation will apply to remote employees. 

Instead of transitioning to a full-time remote workplace, some businesses are opting for a hybrid employment model instead. This option requires employees to be periodically present in-office, which could allow for more traditional HR protections to remain in place. However, even hybrid workplaces will likely need to update their policies and procedures to address important issues involving even part-time remote work. 

Additional Considerations for Out-of-State Remote Workers

With the fully remote model gaining popularity, some employees have developed a “work from anywhere” mindset. And while modern technology certainly makes this possible, it is still vital that employers monitor their remote employees’ locations. An employee moving out of state, or even working from another state for a substantial period of time, can expose their employer to unanticipated legal liabilities.

When employees work in another state, their employers can become subject to the laws of that state. That means that the employer might be required to pay income, sales, or other taxes that they did not pay before. It also means that employers may need to comply with different overtime and wage laws, paid leave requirements, and anti-discrimination laws, or they may be required to pay into another state’s workers' compensation and unemployment programs.

The stakes are high, so business owners should make sure that they keep their records on employee locations up-to-date. As an alternative, employers may want to consider limiting the areas where employees can work to prevent the creation of new legal compliance requirements. Employment attorneys can help business owners implement compliance programs that more carefully monitor remote employees and update their policies and procedures to address the unique concerns of remote work.