Remote work has exploded since the COVID-19 pandemic began with some employers hiring employees to work remotely anywhere in the United States.
With the recent economic downturn, layoffs are beginning to occur, and for the first time a significant number of remote employees may be included in layoffs. Layoffs of remote employees present unique legal hazards for employers.
Final Paycheck and Access to Personnel Files
Generally, remote employees are subject to the wage and hour laws of the states and localities in which they are physically present and working. An employer's payroll practices for final paychecks in its home state may not be sufficient to meet the requirements of the out-of-state remote employee's locale.
For example, Washington State employees must be paid their final wages no later than the next regular payday following separation from employment. In Oregon, by contrast, discharged employees must be paid their final wages by the end of the next business day following a termination of employment. Final paycheck laws vary from state to state.
Noncompliance may result in significant penalties, and in some cases, private causes of action with the ability to recover attorneys' fees. Employers may want to carefully review the final paycheck laws applicable to out-of-state remote employees prior to terminations of employment.
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