Flexibility and Independence
Some of the most appealing characteristics of remote work are that it allows people to be more flexible and work their schedules into their lives. Whether you are at home with your children, working around other family schedules, or simply building your work schedule around when you are most productive, remote work can offer us this invaluable flexibility.
It also allows for independence and less hassle of daily commuting, inflexible staff hours, and more. These reasons have made remote work increasingly popular over the past decade, with another significant push following the COVID-19 epidemic.
It’s crucial to be aware of and understand employment laws and how they pertain to remote workers to avoid unnecessary legal issues while one continues to thrive in their remote environment. Read on to learn more.
Tax Implications
One of the most essential and impactful issues employers and employees must consider with remote work is the tax implications for all involved. Tax professionals can be relied upon to ensure employers don’t inadvertently place themselves in unnecessary territory regarding differing state tax regulations, withholding requirements for remote workers, and more.
For example, employees who work remotely may have to pay taxes in multiple states if their company is in a different state than they reside in. Following all state tax laws is important, leaving some employees vulnerable if they aren’t aware of the tax laws.
Reciprocity agreements are in place for a select number of states, enabling employees to avoid paying multiple states’ taxes. For example, if you work for a New York company but reside in a neighboring state, you would typically only be required to pay one state’s taxes. It’s important to rely on tax professionals to ensure you remain compliant, however, since each state is different.
Overtime Concerns
As with any remote worker, it’s difficult to determine when the employee is working and when they aren’t. This unknown criteria can lead to employees working overtime hours without consent, costing the company unnecessary money.
By enforcing time-tracking software or other ways to track when an employee is working, employers can protect themselves and oversee when employees are actually productive. The employer must implement online time clocks or other adequate tools, and the employees must be responsible for tracking their time.
Employers can also enforce regular work hours when breaks are necessary and more through policies and contracts between themselves and employees.
Keep in mind that depending on how the employment is structured, an employee may be exempt from overtime considerations, such as in cases where payment is either salary vs. hourly.
Thus, all parties are adequately protected, and clear expectations are set in advance. Consult an experienced employment attorney to ensure all parties are compliant.
Privacy Concerns
In our day and age, discussing privacy can be an especially concerning and sensitive issue. Remote workers may need to be supervised, whether through software that analyzes keystrokes, eye movement, video surveillance, or otherwise, which may raise concerns among remote workers.
Contracts or employee handbooks need to be thorough and transparent concerning expectations to avoid unnecessary issues. Many states have laws requiring employers to notify employees of electronic monitoring, and New York is one of them.
It’s crucial to follow all state laws and put together bulletproof contracts and policies to protect both employers and employees regarding remote working conditions.
Health and Safety Requirements
It’s also important to understand that though an employee may be working from home, a safe and healthy work environment may still fall on the employer’s list of responsibilities. Training can be provided to ensure that the employee is aware of best practices, expectations, and more.
Employers should have specific details mentioned in the handbook or contracts regarding reporting work injuries or illness so the employees know what to expect at the hire date.
An experienced employment lawyer will have a vast knowledge of the requirements for employers and employees and is an invaluable resource when creating a lasting employer/employee relationship.
Business Expenses and What They Can Mean for Employers
It’s essential to understand the business expenses remote workers may incur and how to go about them. These expenses and how to document them can be explained through training and employee handbooks. The company can then enforce expense-reporting software or other ways of detailing expenses incurred so they can be adequately accounted for.
From an employee standpoint, recording all expenses incurred can be crucial. Clear and thorough documentation of all expenses ensures that your employer can reimburse relevant expenses, and those personal expenses can be handled either through your accountant at tax time or added up to ensure that your wages are enough to cover the individual costs incurred.
Navigating the Remote Working World
With remote working gaining momentum over the years, it’s essential to understand the benefits for employers and employees alike. The professional world is rarely as straightforward as one would like, and the complexities of employment contracts can make one’s head spin.
For nearly 20 years, our team has supported professionals in New York, allowing them to navigate the evolving employer/employee landscape easily. Don’t let important changes make you non-compliant and, thus, vulnerable to legal issues.
By working with a business attorney to be proactive in your remote working endeavors, you can ensure that you are set up for success in every way from day one.
Contact our office at (314) 648-2586 to learn more. We have a wide array of specialties to encompass all angles of the business world and protect our clients at all costs.
We look forward to serving you.