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It’s been six years since a global pandemic transformed the employment landscape for nonprofits by cementing remote and hybrid work arrangements as an industry norm. Remote work presents many benefits relative to reduced real estate footprints, more manageable overhead costs, recruitment and retention advantages, and the promise of a better work-life balance.
However, it also grafts expansive compliance obligations onto employers which must comply with dozens (even hundreds) of employment laws in the various jurisdictions in which their employees reside and work.
There are many legal, compliance, and practical issues and challenges facing a multi-jurisdictional nonprofit workforce. This column is limited to domestic and not international jurisdictions. Employing workers in internal jurisdictions poses a series of significant additional compliance obligations.
A. State Laws
The laws in the jurisdiction from where a remote employee principally works in most instances will govern the employment relationship. Employment laws vary from state-to-state and municipality-to-municipality.
1. Business Registration: All states require “foreign” (not incorporated in the state) corporations to register to do business in the state. Each state has different guidelines about when “physical presence” triggers state registration requirements, but, generally, having a remote employee in a state will trigger such a registration obligation. Nonprofits that do not...
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