Small Business Owners Need an Employment Law Check Up - Small Business Trends
Before the pandemic, 30% of employees worked remotely/hybrid. Post pandemic, 48% work remotely/hybrid.
The growth of a remote or hybrid workforce has created new areas of concern:
- Remote/Hybrid Worker Location
- Data Security at Remote Workplaces
- Monitoring Remote and Hybrid Workers, and Workers Comp
ADP delved into those topics during its annual Employment Law Checkup webinar.
Impacts of Remote/Hybrid Worker Location
What if a company’s brick-and-mortar location is in one state, but an employee works from home in another state?
The onus is on the employer to ensure that the company is in compliance with the “foreign” state laws, including: tax issues, hourly wage issues (increases in minimum wage), FLMA laws and annual compliance notices.
Let’s break these down:
Tax and benefit issues – payroll taxes withheld must be adjusted correctly for the hours that the employee is working in the “foreign” state. Payroll taxes apply where the work is performed.
Hourly Wage issues – Yes the federal government sets the minimum wage, but whatever a state sets overrides that. For example, the federal minimum wage is $7.25; Connecticut recently raised its minimum wage to $14. Some states (for example, Colorado and California) calculate overtime differently – for example, by the day and not the week.
Takeaway Advice from ADP senior counselors Kevin Skelly and Samantha Munro:
“The employer should have strict policies concerning “off-the-clock” work (such as making and answering calls after...
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