Employers who allow workers to work remotely, or on a hybrid work schedule, could face challenges related to wage and hour compliance issues under the Fair Labor Standards Act (FLSA). Hourly workers who are not exempt from the FLSA overtime rules, which have no set or enforced policies on where and when they can work, could create major liability for employers under certain circumstances.
While there is no way to eliminate the risk of FLSA violations with remote and hybrid workers, employers can take some steps to minimize their risk of lawsuits by employees and enforcement actions by regulatory agencies.
First, employers must recognize that many states and local jurisdictions have laws extending beyond FLSA. As a result, employees working in those jurisdictions may qualify for mandatory overtime pay more quickly than employees working in other jurisdictions. State and local jurisdictions also may offer more generous benefits than on the federal level or the jurisdiction of the employer’s primary place of business, such as higher minimum wage levels and mandatory paid and unpaid leave time.
Clarify the Laws that Apply to the Position
As a result of these potential conflicts, employers should address the issue at the outset of the employment relationship by clarifying in writing that they are hiring an employer to work in a certain location, that work in a different location is not permissible, and that only the laws of the specified location apply.
If a worker chooses to...
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