Remote work isn’t going anywhere.
The distributed workforce was an emergency solution during the pandemic, but is now here to stay. Unfortunately, adapting to remote work isn’t always easy.
The issue?
Most businesses operate with policies designed for in-office teams. Policies that were created for businesses run out of a single location.
That’s simply not how teams work anymore. We’re seeing distributed teams spanning across many states. All under the same company policy.
Needless to say, this causes all sorts of problems.
Employee confusion, compliance issues, and legal nightmares.
In this article, we breakdown exactly how successful businesses are structuring their policies for remote teams.
Remote Work Policy Topics You Can’t Ignore
- Why Remote Work Policies Are Important
- Handling Distributed Teams Across States
- Top Employment Topics To Cover In Your Policy
- Tips For Developing A Remote Work Policy
Why Remote Work Policies Are Important
Before we jump into policy frameworks, let’s look at why you need them.
Remote work has hit the mainstream. In fact, Robert Half’s research found that 88% of employers across the U.S. offer some kind of hybrid work model.
Hybrid is the new normal.
But here’s the kicker…
Working remotely without policies opens you up to a world of legal issues. Companies are scrambling to employment law services to ensure their compliance. If you have remote workers in your team, consider partnering with a Louisiana Employment Law Firm or legal professional in your state who can provide assistance and ensure that you remain compliant with local, state, and federal guidelines.
Businesses are getting fined left and right.
Employees that work remotely in multiple states can cause payroll violations that reach up to 5% per month. That’s an extra 25% fine as reported by ADP compliance experts. Those are fines taken directly from your profit.
And it doesn’t stop there.
Your remote employees are still entitled to the same rights and protections. Whether they’re working in your office or at home on their couch. That includes:
- Proper wages
- Equal treatment under discrimination laws
- Safety standards
Handling Distributed Teams Across States
If you have remote employees in multiple states, you’re going to have to pay close attention to employment laws.
Employment laws apply based on where the employee works, not where your business is headquartered. This can get messy REAL fast.
A few examples:
If you have remote employees living in California, New York, and Texas. You now must follow three sets of employment regulations.
Each state has different rules around:
- Minimum wage
- Overtime rates
- Meal breaks
- Expense reporting
- Paid time off
California mandates employers provide partial reimbursement for remote employee expenses. Texas follows federal guidelines mostly. New York?
Moral of the story?
You can’t have one blanket policy that applies to every employee.
Top Employment Topics To Cover In Your Policy
So, you know you need remote work policies. But where do you start?
There are specific employment law topics you should cover when developing your remote work policies.
Wage And Hour Policy
This one is tricky with remote workers.
Many employers assume that since remote workers are in control of their schedule. They don’t need to track their time. That mentality will get you in trouble fast.
All hours worked by an employee must be paid.
That includes the work emails your employee sends at 9PM. By law, if you “suffer or permit” an employee to work, you must compensate them under federal law.
You should have policies and procedures that address:
- Tracking hourly employees‘ time
- Calculating overtime wages
- Paying proper minimum wage
- Reporting meal and rest periods
There are even specific policies around tracking remote workers’ time.
Information Security Policy
Remote work means your employees work wherever they want.
That creates unique data security risks that your policies should cover. A good remote work policy covers:
- Multi-factor authentication
- Virtual private network (“VPN”) requirements
- Data breach reporting
And that’s just the basics. Healthcare and finance industries have even more stringent requirements under HIPAA and SOX.
Tax Policies
Did you know that just because you have remote employees in another state. You may be required to register to pay payroll taxes?
Yup. It’s true!
And that’s just payroll taxes. Some states will require you to register for unemployment insurance and benefits as well.
Oh, and on top of all that. Your company may need to officially register in states where you have remote employees.
Workers’ Comp Policy
If an employee is hurt while working at home. They can still file a workers comp claim.
You should have policies that outline what work-related injuries are. And verify that workers comp will extend to remote employees.
Tips For Developing A Remote Work Policy
Want some tips for drafting your remote work policies? You got it.
Written Policies
Document, document, document.
When in doubt, put it in writing. Your remote work policy should cover expectations around:
- Working hours
- Communication
- Performance expectations
- Applicable state laws
This isn’t just recommended, it can protect you legally.
Location Tracking
Your employees work location matters.
Not because we care where they’re located. But because that location likely has different laws.
Make sure your policies include a procedure for employees to notify you if they:
- Work from a different location regularly
- Relocate to a different state
Invest In The Correct Technology
Technology will be your best friend when working with a remote team.
Use modern HR technology to store your policies in one location. You should be able to automate payroll calculations based on state laws. Track employee hours in multiple locations. And flag potential issues before they happen.
Update Your Policies Regularly
Employment laws aren’t static.
What’s considered legal today may not be next year. Make sure to review your remote work policies every quarter. And do a deep dive once a year to ensure compliance.
BONUS: The Retention Benefit Of Remote Work
Bend over for this mind blowing statistic…
Workers are quitting or looking for a new job if their employer takes away remote work benefits.
According to Founder Reports, a full 64% of remote workers said they would either quit or look for a new job.
Companies with remote work policies have a 26% lower employee turnover.
Remote work policies can help you retain staff.
Remote work isn’t a perk. It’s an expected benefit.
People want to work remotely. Give them what they want and you’ll build a stronger team.
Wrapping Up
While transitioning your business to a remote work model can be difficult. Neglecting to create a remote workforce policy can be devastating.
Here’s what you need to remember:
- Working remote can cause you to run afoul of multiple states laws
- Each state your remote employee works in dictates the employment laws that follow them
- Topics to cover include wages, data security, taxes, and more
- Written policies can actually protect you if a lawsuit occurs
- Policies should be updated regularly to account for changing laws
Businesses that are winning with remote work treat it as a priority.
They understand that remote work is different than traditional work. By creating remote-specific policies, you can build a successful distributed team.
