In the last quarter of 2021, 69% of the 2.050 employees surveyed by Global Workplace Analytics and Owl Labs reported working remotely during the pandemic. One third of employees expressed a strong preference for continuing to work remotely, including changing jobs if necessary. Clearly with help from technology, working remotely is rapidly becoming the new normal for many employees. In response to employee preferences in a tight labor market, employers are pivoting to incorporate remote work into their business models. The pivot can morph into a legal hurdle, though when an employee’s remote work location is outside the state in which the employer is located (employer’s home state).
Typically, employers must comply with the laws of the jurisdiction in which the employer is located (foreign state). Consequently, employers should definitively identify the state in which the employee is working at the outset of the remote employment relationship to avoid potential penalties under foreign state law. This is particularly true in the context of wage and hour laws which 1) apply immediately and 2) with at least one employee working in a foreign state on an extended or permanent basis.
Process for compliance obligations regarding payment of wages
Wage and hour laws and other laws addressing compensation, such as expense reimbursement and unemployment compensation rules, vary by state and address a wide range of compensation issues. In order to quickly assess differences in...
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