Question:
We have a local employee who is moving out of state and wishes to remain working for the company remotely. Is there anything we need to consider before approving this?
Answer:
There are a lot of things an organization should take into consideration before hiring a remote employee or allowing an employee to work remotely in other states. The biggest thing for employers to be aware of is that you must follow the state and local laws where the work is being completed – this means based on the residence of your employee. State and local laws can vary drastically from location to location, so here is a list of some things you’ll want to be mindful of:
- State Business License and Registration – Some states and municipalities have requirements to register your business in those locations.
- Pay Requirements – Different states have different laws related to pay frequency, final paychecks, minimum wage, salary thresholds for exempt employees, as well as payroll taxes.
- Unemployment Insurance and Workers’ Compensation – Check for state unemployment insurance that you may need to pay into. You’ll also want to make sure that you obtain workers’ compensation insurance in any state where you have employees working.
- Breaks and Time Off – Again, laws regarding required breaks or even time off from work can be issued at the state or local level. Check for sick leave laws based on where your employee lives. Laws can also differ when it comes to things like vacation rollover from year to year or payment upon termination.
- Labor Law Posters and other Notices – Just as you post a labor law poster in your office building, you need to provide proper notices to your employees in other states. Federal notices will be the same, but state and local notices will be different. Depending on the state, you may need to send printed copies, or you may be allowed to provide a digital copy of all required notices.
These are just a few of the major considerations an employer should take into account when looking at the decision to allow employees to work remotely in new locations. As always, work with your HR consultant or labor attorney when you’re unsure.
Courtesy of Ahola.
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