8 Tips for Complete Labor Law Compliance When Managing Hourly Remote Workers

Hourly employees don't stop being covered by wage, hour and posting laws when they work from home. If anything, remote work raises the stakes. Time tracking gets harder to verify, off-the-clock work becomes easier to miss and a single employee working across state lines can trigger a whole new set of requirements.

These eight remote worker compliance tips will help you avoid the legal complications that catch employers off guard.

1. Understand nonexempt status — Compliance starts with knowing how your hourly remote workers are classified. Under federal law, employees who are paid hourly are typically nonexempt, which means baseline protections apply. First, they must earn at least the legal minimum wage for every hour workers. Second, once they exceed 40 hours in a workweek, they must receive overtime pay at one and one-half times their regular rate.
2. Track time carefully — To meet time and pay requirements under the Fair Labor Standards Act (FLSA), you must carefully track the hours of nonexempt employees. An electronic timekeeping service is the easiest option for remote workers, although handwritten time sheets are equally acceptable under the FLSA. Whatever method you use, be sure the records accurately reflect dates and times of all work performed. Also, if you allow rounding, such as to the nearest five minutes or quarter of an hour, do so consistently for all time entries.
3. Avoid automatic time entries — Don’t make the mistake of indicating an employee’s scheduled shift hours instead of actual hours worked. For example, don’t report that an employee worked from 9:00 a.m. to 5:00 p.m. each day unless these entries are based on the employee’s actual punch-in/punch-outs. Similarly, avoid making automatic deductions for meals and breaks unless you’re certain the entries reflect actual uninterrupted time.
   
   

   Be aware: If time records are incomplete or inaccurate — and an employee claims he or she was underpaid — the claim will be nearly impossible to defend.

4. Don’t allow “off the clock” work — Working “off the clock” should not be tolerated, as it can lead to unauthorized overtime. Typically, if a nonexempt employee performs any work on your behalf, the employee must be compensated for the time — regardless of whether you expected, requested or authorized the regular or overtime hours. Also, keep in mind that you don’t have to pay for meal or rest breaks if they’re at least 30 minutes, and employees are completely relieved of their work duties. Because this is difficult to monitor when employees aren’t onsite, it’s wise to emphasize the rules upfront with all hourly remote workers.
5. Communicate specific remote worker policies — Putting company rules in writing helps set expectations and reduce misunderstandings, both of which are especially important with remote workers. Some items to address are 1) use of company equipment, 2) work schedule and availability, 3) overtime restrictions and approval process, and 4) data security and confidentiality.
6. Uphold other legal requirements — Keep current with various federal, state, county and city laws pertaining to remote workers. This includes the Occupational Safety and Health Act (OSH Act), which requires employers to provide a safe workplace; workers’ compensation that may cover an injury or illness experienced during remote employment; and the Americans with Disabilities Act (ADA), under which telecommuting may be considered a reasonable accommodation. There’s also the Family and Medical Leave Act (FMLA) and various state and local leave laws that must be managed. If a remote worker needs time off for protected reasons, they should follow the same procedures as onsite employees.
7. Provide electronic postings and notifications — Employers must comply with mandatory posting and notification laws even when employees work remotely. In this case, the Department of Labor (DOL) recommends electronic postings for all employees who do not visit a physical work location at least three to four times per month. The DOL also explicitly states that electronic delivery — such as email distribution or intranet links — is an acceptable way to comply.
8. Monitor multi-state compliance — For companies with remote employees across different states, meeting labor law posting requirements becomes more complex. Generally, the laws in the state where an employee works (not necessarily where they live) govern employment rights, like minimum wage and overtime. Moreover, your business's primary location may also impose compliance requirements. If your remote employees report to your main office but work from another state, the safest approach is to provide state-specific postings for both locations.

Did you know? A remote employee working across state lines may be covered by different minimum wage, paid leave and posting requirements than your onsite staff.

Ensure Continuous Remote Worker Posting Compliance

Two solutions make it easy to meet posting requirements for your remote workforce:

Poster Guard® E-Service for Remote Workers gives employees online access to mandatory postings and confirms when they’ve viewed them. It’s ideal for companies with 10 or fewer remote employees, or any business that wants proof of access.

Intranet Licensing Posting Service 12-Month puts a single link on your intranet or website. Employees click, select their location, and view every applicable federal, state, county and city posting.