Employers Continuing Remote Work Must Be Watchful for Legal Pitfalls

 Posted on May 05,2021 in Employment Lawyer

Concerns over the spread of COVID caused many employers to transition to remote work. Although many workplaces are returning to a sense of normalcy, some employers are choosing to continue remote work. Companies like Amazon, Microsoft, and Spotify have officially decided to extend work-from-home opportunities past the pandemic. Many small businesses are following suit. If you are an employer with remote workers, it is essential that you understand the possible legal implications of remote work. Issues like worker classification and overtime pay may be especially complicated when workers are working remotely. 

Misclassifying Employees as Independent Contractors

Traditionally, most work-from-home positions were independent contractor positions. Now, more and more employees are working from home. In many businesses, employers’ needs are met by a combination of independent contractors and employees. If you choose to utilize independent contractors in your business, you must ensure that these workers meet the criteria necessary for contractor classification. Contractors must:

• Work outside of your direct control

• Provide a service outside of your typical course of business or place of business

• Work in an independently established occupation, business, or trade

Timekeeping and Overtime Considerations

Keeping track of work schedules is more complicated when employees work remotely. If your employees are non-exempt, you must ensure that you keep track of any work above 40 hours a week so that you can pay the staff overtime. Lax record keeping can lead to confusion and wage law violations. Not paying attention to staff work hours may also lead to employees claiming a greater number of hours than they actually worked. There are many different electronic record-keeping programs that you can use to ensure that your remote employees work their assigned schedules and make appropriate use of their time.

Remote Workers in Different States

There are many upsides to hiring remote workers – including a much larger pool of job candidates to choose from when hiring. However, there are also several legal challenges associated with remote employees – especially if workers live in a different state. For example, if you hire employees outside of Illinois, you must ensure that you are compliant with the other state’s laws regarding minimum wage, sick leave, and family medical leave. There may also be significant tax considerations associated with hiring out-of-state employees.

Contact a Schaumburg, IL Employment Law Attorney

Many employers are recognizing the benefits associated with remote work and plan to extend work-from-home opportunities after the pandemic. If you plan to utilize remote workers in your business, it is crucial that you understand the unique legal challenges you face. A skilled Illinois employment lawyer can help you address these challenges and ensure that that your business is compliant with state and federal employment laws. Call 847-995-1205 for a free consultation at Miller Law Firm, P.C.

Source:

https://www.cnbc.com/2021/03/11/one-year-into-covid-working-from-home-is-here-to-stay.html