How Do Labor Laws Apply to Telecommuting Employees?
Telecommuting is becoming an increasingly popular perk for companies to offer employees. However, it can leave companies wondering which labor laws apply to their employees. Are they bound by the state where the company operates? Or are they bound by where the employee is working from? What if the employee is traveling across the country while working? With labor laws that vary by state, it can be confusing at the very least and a lawsuit at the worst.
Which Labor Laws Should My Company Follow?
This is the most common question companies have about their remote workers. The company needs to abide by the labor laws in the location where the employee works, typically their home. Keep in mind, if your employee temporarily relocates due to something such as a natural disaster, the state in which they are performing work is what labor laws your company needs to follow. Labor laws will vary from place to place, so be sure to do your research and conduct a state by state analysis to ensure your organization is in compliance.
FLSA (Fair Labor Standards Act) Laws
The FLSA laws cover all United States employees, regardless of job location, with rights such as minimum wage, overtime pay, and more. First, your company needs to determine if your employee meets the criteria for an exempt or non-exempt worker. If they are non-exempt, they must meet the federal minimum wage requirement. However, there are several cities and states across the country, such as California, Maine, and New York, that have a higher minimum wage than the federal requirement, which must be met. Overtime pay is another right covered by the FLSA laws. If any employee (including remote workers) work more than 40 hours per week, they must be compensated at 1.5 times their hourly rate. But, in California, employees are entitled to overtime pay if they work more than 8 hours a day and double time if they work over 12 hours a day. Always conduct an analysis of the labor laws in all states in which your employees work to help ensure compliance.
Leave Laws
While there is currently no federal sick leave laws, there are 20 states along with Washington D.C. that have laws on sick leave. In some instances, like FMLA, there can be some confusion because one of the requirements is the employee reports to a location of over 50 employees within a 75 mile radius. Home may not be considered a workplace. But, according to SHRM, “Employers must consider the physical office location that these remote employees report to and receive their work from as being the work location for FMLA purposes.”
What Does My Company Need to Consider?
It is imperative that your company have policies and procedures in place for remote workers that comply with any applicable labor laws including time tracking, overtime, sick leave, FMLA, and worker’s compensation. The employee handbook should be regularly updated to reflect any policy changes and remain in compliance with labor laws.
Labor laws can be difficult to navigate with remote employees, especially if you have them in several different states. However, it doesn’t have to be complicated. We’ve helped numerous companies navigate policies around labor laws with their remote workers by providing industry expertise, insight on best practices, and ensuring compliance with all labor laws. Reach out to CJC HR Services to get the help your company needs with its remote employee policies.
