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Employment laws are complex. For companies that rely on a remote workforce, the complexity can rise even further if not working with employment law experts. However, we’re going to outline the following:

  • What employment laws apply to remote employees
  • What employment laws apply to small business.

What Employment Laws Apply to Remote Employees?

Employees working remotely from within the United States can expect similar rights to their coworkers working non-remotely. This is outlined in the Fair Labor Standards Act.

A few of the laws to consider here are:

Minimum Wage Requirements

Employees must work a certain number of hours within a city’s jurisdiction to earn minimum wage. Often, these limits are minor, such as working two hours or less.

Hourly Tracking

For hourly employees, the Department of Labor (DOL) requires that employers pay employees for all:

  • Required hours
  • “Suffered or permitted” hours

For example, if an employee is required to work overtime, the employer must pay them for these respective hours. The DOL asserts that employers should have measures in place to track the hours remote workers work and to also allow for the easy reporting of unscheduled work hours worked.

Family and Medical Leave Act (FMLA)

The FMLA Act laws are complex and confusing for employers, mainly because remote work isn’t explicitly defined. However, FMLA laws mention:

  • It applies to businesses with 50+ employees in a 75-mile radius
  • It makes no mention of remote work

The definition of “radius” may lead businesses to believe that they don’t need to offer FMLA to their employees. This sentiment is inaccurate. Instead, the “worksite” is where the employer is located rather than the employee.

Under this description, since the employee still reports to the employer at the employer’s location, they’re still eligible for FMLA.

Business Expense Reimbursement

The Act makes it clear that if a remote worker incurs a business expense while working remotely, the employer does not need to reimburse the cost. However, some states have passed their own laws that do require reimbursement for some costs, including the following states:

California’s law, for example, requires employers to reimburse their remote employees for any loss or expenditure that is required to perform their job duties. Companies that operate from within these states can research the details of their employment laws using the links above.

What Employment Laws Apply to Small Businesses?

Employment laws can be on the state and federal levels. While some laws apply only to businesses with 50 or more employees, others do not. Employers should not try to navigate these laws on their own.

Instead, work with an employment law expert that will verify the business’s requirements when hiring remote employees.

When employees are in different states, the law often reflects the laws of the employer’s state because the employee still reports to the employer, even though they don’t reside in the state.

However, depending on the state law and circumstances, the laws of the employee’s state may apply.

It’s crucial for business owners to work with legal experts to follow the laws for remote workers properly.