Introduction Workplace discipline is essential for maintaining a productive, positive and safe...
Overview and Summary:
As the traditional nine-to-five workday becomes increasingly a thing of the past, more and more employees are working remotely at least some of the time. And while there are plenty of advantages to working from home – no commute, more flexible hours, etc. – there are also a few potential compliance risks that employers need to be aware of.
One of the most important compliance considerations for employers is data security. When employees are working remotely, there is a greater risk that sensitive company data could be compromised if it is not properly secured. Employers should have strict policies in place regarding the handling and storage of company data, and should provide employees with training on how to keep it secure.
Another compliance risk to consider is whether your remote employees are properly classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA). If they are misclassified, you could be liable for back wages and overtime pay. Be sure to consult with an attorney or HR professional to ensure that your remote workers are correctly classified.
There are a few other compliance risks to be aware of when it comes to remote work, but these are some of the most important. By taking steps to mitigate these risks, you can help ensure that your company stays compliant – and that your remote employees are productive and happy.
Employment Law Compliance in The Remote Work Era: Are You in The Know?
Remote Workers / Remote Employees: Tips for Managing Compliance Risks
As more and more employees work remotely, employers must be aware of the potential compliance risks that come with this arrangement.
Here are a few tips for managing compliance risks associated with remote work:
1. Implement strict data security policies.When sensitive company data is stored and accessed off-site, there is a greater risk of data breaches and other security problems. To mitigate this risk, employers should have strict policies in place regarding the handling and storage of company data. Employees should be given specific instructions on how to keep data secure, and should be held accountable for following these procedures.
2. Make sure remote employees are properly classified.If remote employees are misclassified as exempt or non-exempt under the Fair Labor Standards Act (FLSA), employers could be liable for back wages and overtime pay. To avoid this problem, it is important to consult with an attorney or HR professional to ensure that all remote workers are correctly classified.
3. Provide employees with the tools they need to be productive.In order for remote employees to be productive, they need to have the right tools and resources. Employers should provide employees with access to the same software and systems they would use if they were working in the office. Additionally, employers should consider investing in remote work-specific tools, such as video conferencing software, that can help facilitate collaboration and communication.
By taking steps to mitigate the compliance risks associated with remote work, employers can help ensure that their companies stay compliant and their employees are productive.
Common HR compliance issues:
There are a number of HR compliance issues that can arise when employees work remotely. These include:
Payroll taxes:
The employer is responsible for withholdings and payroll taxes for all employees, regardless of whether they work remotely or in the office. Employers should make sure that they are correctly withholding and paying payroll taxes for all employees, including those who work remotely.
Time tracking:
If remote employees are classified as non-exempt under the FLSA, employers must ensure that they are accurately tracking their hours worked. This may require investing in time-tracking software or using a paper timesheet system. Employers should also have a process in place for employees to submit their hours worked on a regular basis.
Employee classification:
To avoid misclassifying employees as exempt or non-exempt, employers should consult with an attorney or HR professional. This will help ensure that all employees are correctly classified and that the company is in compliance with the FLSA.
Benefits:
Employers should make sure that they are offering the same benefits to remote employees as they do to employees who work in the office. This includes health insurance, retirement benefits, and paid time off. Employers should also consider providing additional benefits, such as stipends for internet and phone service, that can help offset the costs of working remotely.
Expense reimbursement:
If employees are required to incur expenses while working remotely, employers should have a process in place for reimbursement. This may include pre-approving expenses or reimbursing employees on a monthly basis. Employers should also make sure that they are correctly tracking and documenting all expenses incurred by employees.
Communication:
To ensure that remote employees are productive and engaged, employers should establish clear lines of communication. This may include setting up regular check-ins, using video conferencing software, or sending out regular updates. Employers should also make sure that remote employees have the ability to easily reach out with questions or concerns.
Performance reviews:
Employers should make sure that they are conducting performance reviews for all employees, including those who work remotely. This will help ensure that employees are meeting expectations and that the company is in compliance with any applicable laws.
Policies and procedures:
Employers should have policies and procedures in place that specifically address remote work. This may include a remote work policy, time-tracking policy, expense reimbursement policy, and communication policy. Employers should also make sure that all employees are aware of these policies and procedures.
Best Compliance Practices in Remote Work
Glossary of Terms and Definitions:
Remote employee: An employee who works from a location other than the company's primary office.
Work-from-home arrangement: An arrangement in which an employee works from home on a regular basis.
Flexible work arrangement: An arrangement in which an employee has some degree of flexibility in when and where they work.
Compliance: The act of adhering to a set of rules or guidelines.
HR compliance: The act of adhering to a set of rules or guidelines related to human resources.
Payroll taxes: Taxes that are withheld from an employee's paycheck and paid to the government.
Time tracking: The process of tracking the hours worked by an employee.
Employee classification: The process of classifying an employee as exempt or non-exempt under the FLSA.
Exempt employee: An employee who is exempt from the overtime provisions of the FLSA.
Non-exempt employee: An employee who is not exempt from the overtime provisions of the FLSA.
Employment eligibility verification: The process of verifying that an employee is eligible to work in the United States.
I-9 form: A form that is used to verify an employee's employment eligibility.
E-Verify: An online system that is used to verify an employee's employment eligibility.
Benefits: Something that is offered by an employer to an employee, such as health insurance or paid time off.
Expense reimbursement: The process of reimbursing an employee for expenses that are incurred while working.
Communication: The act of exchanging information between two or more parties.
Performance review: A meeting in which an employer evaluates an employee's job performance.
Remote workforce: A workforce that is composed of employees who work from locations other than the company's primary office.
Telecommuting: The act of working from a location other than the company's primary office.
Home office: A room in an employee's home that is used for work purposes.
Virtual office: A location that is used by employees who work remotely.
Telework: The act of working from a location other than the company's primary office.
Professional employer organization: An organization that provides HR services to companies.
Independent contractor: A worker who is not an employee of the company they are working for.
1099 form: A form that is used to report income from sources other than employment.
Contractor agreement: A contract between a company and an independent contractor.
Compliance requirements: There are a number of compliance requirements that employers need to be aware of when managing a remote workforce. These include payroll taxes, employment eligibility verification, and time tracking.
Remote work arrangement: An arrangement in which an employee works from a location other than the company's primary office.
Work-life balance: The act of balancing work and personal life.
Telework agreement: A contract between an employer and employee that outlines the terms of a telework arrangement.
Company policy: A set of rules that govern the operation of a company.
Employee handbook: A document that outlines a company's policies and procedures.
Code of conduct: A set of rules that govern an employee's behavior.
Harassment policy: A policy that prohibits harassment in the workplace.
Social media policy: A policy that governs an employee's use of social media.
Technology policy: A policy that governs an employee's use of technology.
Work hours: The hours during which an employee is expected to work.
Overtime: Hours worked beyond the standard work week.
Compressed work week: A work schedule in which an employee works fewer days but more hours each day.
Flexible work schedule: A work schedule that allows an employee to vary their start and end times.
Work from home: The act of working from a location other than the company's primary office.
Leave policy: A policy that governs an employee's use of vacation time, sick time, and other types of leave.
Paid time off: Time off from work that is paid by the employer.
Unpaid time off: Time off from work that is not paid by the employer.
Vacation: Paid time off from work that is used for leisure or personal travel.
Sick leave: Paid or unpaid time off from work that is used for illness or injury.
Bereavement leave: Paid or unpaid time off from work that is used in the event of a death in the family.
Maternity leave: Paid or unpaid time off from work that is used for the birth or adoption of a child.
Paternity leave: Paid or unpaid time off from work that is used for the birth or adoption of a child.
Family leave: Paid or unpaid time off from work that is used to care for a family member.
Medical leave: Paid or unpaid time off from work that is used for a medical condition.
Leave of absence: A period of time during which an employee is not expected to work.
Minimum wage requirements: There are a number of compliance requirements that employers need to be aware of when managing a remote workforce. These include payroll taxes, employment eligibility verification, and time tracking.
Home office workers: Employees who work from a location other than the company's primary office.
Work-life balance: The act of balancing work and personal life.
Employment laws: A set of laws that govern the relationship between employers and employees.
HR systems: A set of tools that help organizations manage employee data.
HRIS: A system that helps organizations manage employee data.
Applicant tracking system: A system that helps organizations track job applicants.
Performance management system: A system that helps organization manage employee performance.
Compensation management system: A system that helps organizations manage employee compensation.
Benefits administration system: A system that helps organizations manage employee benefits.
Learning management system: A system that helps organizations manage employee training and development.
Recruiting management system: A system that helps organizations manage the recruiting process.
Onboarding system: A system that helps organizations manage the onboarding process.
Multinational business: A business that operates in more than one country.
Global workforce: A workforce that is spread out across the globe.
Workforce management: The act of managing a remote workforce.
Time zone: A geographical area that uses the same time as another geographical area.
Hybrid workers: Employees who work in both the office and remotely.
