Some businesses like Nationwide Insurance are reducing their office footprint as they let more people stay home. Before you allow more employees to telework, however, here are some important employment law aspects to consider.

Establish Policies Based on Clear Criteria

First, you must have a plan and specific policy in place addressing the remote workforce. The plan should identify which workers may work remotely and establish guidance for the work. In establishing who may work remotely, be mindful of discrimination laws to ensure there’s no selection that could be viewed as biased.

Your remote workforce policy should address security, expectations, and workload issues. Study each job that will be allowed to happen remotely to be sure the standards and expectations are reasonable. You should base eligibility for the remote work on clear criteria and reserve the right to terminate the policy at your discretion.

In implementing a remote work policy, you should:

• Clearly define the remote working plan’s effective dates;

• Establish the expected hours of work;

• Establish expectations for work performance;

• Continue the application and enforcement of all employment practices;

• Proceed with employment reviews with an emphasis on employees achieving expectations;

• Have a policy or agreement that allows for a home office inspection;

• Determine a policy for use-of-equipment, reimbursement, and insurance requirements;

• Protect the company’s right to recall employees to an on-site location (to the extent allowable under local law); and

• Ensure the rules and expectations apply to all employees working remotely.

Employers also should consider other, more complex issues. For instance, you may need to strengthen the payroll function so more complicated employer tax withholding requirements are appropriately satisfied. That is a common challenge for employers that have historically needed to address federal, state, and local income withholding in only a few jurisdictions.

Across the country, state withholding requirements are quite varied, so moving to a remote work set-up with employees working from multiple states introduces complications. Scenarios with multiple state requirements typically need some analysis before implementing the withholding. You should contact counsel if those types of issues arise.

Establish Where Employees May Work

As a part of remote work, you may want to limit employees to working from their primary residence, i.e., in their own home that’s in the same city or state as your company’s office. Employees, on the other hand, may want to work from a vacation home or a location farther from their “home” office.

Employee expansion into a new location may trigger legal issues because some jurisdictions may see people working there as establishing a legal presence for the employer. Before allowing remote work in new jurisdictions, you should consider the following potential legal issues:

• Local, state, and/or municipal leave laws covering wage and hour, vacation, and sick pay among others;

• Local, state, and/or municipal health and safety regulations;

• Registration as a local employer for payroll tax withholding;

• Unemployment insurance contributions; and

• Notification to workers’ compensation and health and welfare insurance providers.

The problems with remote work become more complicated if employees are doing their jobs in locations outside of the United States, where obligations to set up collective representation, requirements for hiring employees in protected categories, and termination protections may apply...

Source: HR Daily Advisor