Hybrid and Remote Work Resource Center
Compliance Guidance and Tools
Hybrid and remote working arrangements present critical compliance challenges for employers, especially when they involve multiple jurisdictions. Although hybrid and remote work is widespread, compliance risks are high – 85 percent of employers report facing compliance issues related to remote work. This leaves organizations open to significant risks, including potential legal actions and penalties.
Key compliance areas include:
- Payroll;
- Leave laws;
- Wage and hour;
- Pay transparency and hiring requirements;
- Data security and workplace safety; and
- Required notices and posters.
Employment law compliance is critical in hybrid and remote work situations to avoid legal risk and liability, and it helps ensure fair and consistent work practices for all employees, regardless of their work location. Bookmark this page as your gateway to HR & Compliance Center resources that can help.
Payroll
State laws vary significantly in how wages must be paid and how income tax withholding provisions apply to residents and nonresidents. Remote and hybrid employees who work in a different jurisdiction from the main workplace can trigger tax nexus concerns and the need to comply with different tax calculation and remittance requirements for each location. In addition, employers must comply with different standards for lawful pay deductions and expense reimbursements.
- Determine State Income Tax Nexus for Telecommuters Checklist
- Business Expense Reimbursement Requirements by State and Municipality
- How to Determine State Income Tax Withholding for Nonresident Employees
- How to Determine State Income Tax Withholding for Employees Who Work in More Than One State
- Income Tax Withholding Reciprocal Agreements and Other Exemptions by State
- Pay Statement and Pay Rate Notification Requirements by State and Municipality
- Permitted and Prohibited Pay Deductions by State and Municipality
Leave Laws
Leave requirements vary significantly across the states and even between localities within the same state, with new laws and ordinances being enacted at a rapid pace. Employers must ensure that eligible hybrid and remote employees are permitted to take any mandated leave, including family and medical leave, to which they are entitled under applicable state or local law. An employer's obligation to comply with a particular state or local law often depends on how many employees it has or how much time the employee spends working within the state or locality.
- Paid Leave Laws by State and Municipality
- Leave Laws by State and Municipality
- Administer Paid Sick Leave to Remote and Hybrid Employees Checklist
- Paid Sick Leave by State and Municipality
- Paid Family Leave Requirements by State and Municipality
- Domestic Violence, Sexual Assault and Stalking Leave and Accommodation Laws by State and Municipality
- Jury Duty Leave Laws by State and Municipality
- Voting Leave Laws by State
Wage and Hour
Many states and localities have their own minimum wage and overtime laws, which often provide higher wages and more protective wage and hour policies than federal law. Employers must pay remote and hybrid workers in full compliance with both federal and applicable state laws, including those governing breaks and scheduling. It is crucial to prevent off-hour work by requiring hybrid and remote employees to record all hours worked and obtain permission from their supervisor before working overtime.
- Minimum Wage Rates by State and Municipality
- Overtime Variations by State
- Scheduling Laws by State and Municipality
- Meal and Rest Break Requirements by State
- Audit Remote Worker Wage and Hour Compliance Checklist
- Acknowledgement Regarding Company Policy Prohibiting Working "Off the Clock" While Working From Home Letter
Pay Transparency and Hiring Requirements
Employers must emphasize compliance from the very beginning of the employment relationship, during the hiring and onboarding stages. States and localities are rapidly enacting pay transparency laws, mandating employers to disclose pay ranges for roles – external and internal – they are looking to fill, including hybrid or remote positions. Additionally, employers must be vigilant in complying with state law restrictions concerning salary and criminal history inquiries during hiring and must ensure they have all required employment verification forms and new hire paperwork needed for onboarding.
- Pay Transparency Laws by State and Municipality
- Salary History Inquiry Laws by State and Municipality
- E-Verify Laws by State
- New Hire Paperwork and Notice Requirements by State
- Noncompete Laws by State
- Immigration and Remote Work Checklist
Data Security and Workplace Safety
Data security and employee safety are critical employment issues, no matter where employees are working. Hybrid and remote work often involve transmitting sensitive data over networks that may be less secure than internal systems. Inadequate data security can result in costly data breaches or jeopardize data confidentiality. Employers must instruct hybrid and remote workers on properly handling sensitive information in compliance with data protection regulations and hold them accountable for doing so. Employers are also responsible for ensuring that hybrid and remote employees are working in a safe environment when they are away from the main office.
- Data Security Breach Notification Laws by State
- Communicate Data Privacy and Security Policies to Remote and Hybrid Workers Checklist
- Recording Communications and Video Surveillance Laws by State
- Occupational Safety and Health Plans by State
- Drug Testing Requirements by State
Required Notices and Posters
All employers must post notices in accordance with applicable federal, state and local statutes and update them as needed. The requirement to provide notices applies to all employees, even to those who work remotely or on a hybrid basis. Posting or providing notices and posters electronically for employees who do not work onsite regularly may comply with the posting requirements under certain criteria, as noted in a Wage and Hour Division field bulletin. (Local posters are listed within their individual state listing.)