[co-author: Leah Shepherd]

Companies rely on hybrid and remote work arrangements to boost their recruiting and retention rates, but they may encounter legal pitfalls if they pay remote workers less than their in-office counterparts for performing similar duties. This article summarizes the legal considerations employers should keep in mind when making strategic decisions about remote work policies and compensation for remote workers.

Quick Hits

• The demand for hybrid and remote work arrangements remains strong among employees.
• Paying remote workers less than in-person workers for performing the same work could increase the risk of discrimination claims.
• Reducing pay for exempt employees who work remotely could jeopardize their exempt status in certain situations.

Five years after the COVID-19 pandemic catalyzed a wave of telework, this type of arrangement remains very popular among many workers. Some job seekers are even willing to accept a lower salary for a fully remote or hybrid job, as it can save them time and money on commuting expenses (such as gas, parking, and vehicle maintenance). According to research from Robert Half in 2025, about half of job seekers indicate that their top preference is hybrid work, while a quarter favor fully remote positions, and 19 percent prefer in-office jobs. These preferences may vary depending on factors like location, job type, and industry.

The same research from Robert Half reveals that at least 88 percent of employers offer...

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