Navigating Remote Employee Compliance Challenges

By |2024-08-03T20:58:29+00:00July 16th, 2024|0 Comments

It is no secret; telecommuting is here to stay.  Federal, state and local laws on payroll, benefits, taxation, breaks, overtime and licensing vary across the U.S. and around the world. Considering your current work environment, you may need help navigating these human resources issues.

Here, you will learn tips and techniques in 10 important areas — for everything from cybersecurity to crisis management — to help you stay in compliance.

1. Family and Medical Leave

According to the Department of Labor (DOL), remote employees’ eligibility for leave under the Family and Medical Leave Act (FMLA) is determined on the same basis as in-office workers. They must have worked for 1,250 hours and been working for at least one year. Additionally, you must have at least 50 employees within a 75-mile radius.

When approving FMLA leave, ensure you’re aware of the recently updated legal requirements regarding telecommuters. For eligibility purposes, a remote worker’s residence does not count as a worksite. It is instead the place where they receive assignments from or report to. In other words, they are eligible even if they technically work over 75 miles away.

2. Misclassification of Workers

Under the Fair Labor Standards Act (FLSA), staff are entitled to overtime pay, minimum wage and certain protections. Many business leaders may assume classifying them as independent contractors is ideal since it offers an easy workaround to this complex compliance issue. However, this is often not the case.

The government classifies independent contractors as those who work for themselves, set their hours, decide which projects to accept and choose who to work for. If you control any of these job aspects, you risk misclassification. Reducing your tax and administrative burdens may be tempting, but proper classification is a smarter business decision in the long term.

3. Unsecured Wi-Fi Connections

Telecommuting has become incredibly popular recently. According to one survey, nine in 10 HR leaders agreed to allow people to work from home post-COVID-19. Unfortunately, as its popularity increased, it became a target for cybercriminals. In other words, staff using unsecured home Wi-Fi connections puts you at risk of privacy and data-security-related compliance issues.

Since you’re unable to tell workers what to do with their personal devices, consider providing a router of your own. Update its password, change its default name and disable its remote access setting. Once you’ve added additional protections, ship them to your staff. Consider sending a protocol or information sheet alongside the package to improve at-home cybersecurity.

4. Remote Supervision Privacy

You’re legally allowed to supervise employees remotely. You can track their productivity, attendance, tasks, performance, location and hours worked, among other metrics. However, they are not legally obligated to install tracking software on their personal devices — and independent contractors may have stipulations in their contract regarding this issue.

Moreover, excessive supervision may evolve into a data privacy issue, especially if it reveals information you cannot legally inquire about, opening the door for those belonging to a protected class to bring legal action forward. Before remotely monitoring staff, obtain explicit consent. Tell individuals exactly when and how you will observe them.

5. On-the-Job Injuries

Generally, workers are eligible for compensation regardless of their location. Even in an office setting, accidents are common — and ones like repetitive strain injuries, soft tissue damage and carpal tunnel syndrome are typically covered. This may become an issue since you likely have little control over people’s homes and work-from-home setups.

To minimize on-the-job injuries — and the inevitable insurance headache that follows — prioritize providing clear safety expectations and raising awareness. Consider providing equipment like ergonomic keyboards or cushioned palm rests to prevent injuries proactively. Notably, remote monitoring tools may prove useful for investigating or contesting claims.

6. Public Wi-Fi Connections

Many remote staff consider working from public locations like coffee shops, bakeries or co-working spaces a perk of telecommuting. If those at your company think the same way, they have likely used public Wi-Fi at work before. Unfortunately, an unsecured connection increases your cybersecurity risk, opening you up to session hijacking or data theft.

Bad actors can easily intercept and steal information from those using public Wi-Fi because they’re notoriously undersecured and overused. While you could ban it and monitor compliance by tracking network, login or location activity, that may reduce morale. Instead, consider requiring a virtual private network, which encrypts communications and protects users.

7. Unsecured Communications

Privacy and data security should be one of your top priorities when handling telecommuters. Since laws like the Privacy Act prohibit nonconsensual data sharing, a leak or breach could create legal and financial issues. However, you still have to rely on communication and file-sharing tools to stay in touch with remote team members.

Ensure every app, platform or service you use encrypts communications to prevent bad actors from using any information they intercept. Prevent shadow information technology (IT) — any software the IT team is unaware of and hasn’t approved — by establishing clear protocols and consequences up front.

8. Work from Home Permits

Have you ever checked if any of your remote workers need permits to work for you from home? State and federal governments may require health and safety or general business licenses. Many local jurisdictions require telecommuters to have home occupation permits since it helps them curb commercial noise and traffic in residential areas.

While securing licenses, authorizations and permits is tedious, it is necessary. Consider incorporating these checks into your hiring process to filter out candidates who live in areas where the administrative work is too burdensome. Simply state in the job description that you aren’t accepting applications from those places at this time.

9. Recordkeeping for Hours Worked

Recordkeeping is one of the major aspects of the FLSA. If you employ workers — meaning not independent contractors — you must track their hours, overtime and pay records. According to the DOL, you must record their total hours worked each workday and workweek. However, accurately tracking their time and earnings with little to no oversight poses a challenge.

While the DOL explicitly states you are not required to use time clocks, you should consider doing so. Even a simple time-tracking app gives you a relatively accurate overview of when people start their days, take breaks and clock out, helping you remain in compliance with various labor and recordkeeping laws.

10. Communication Monitoring

The Electronic Communications Privacy Act prohibits you from intentionally intercepting, procuring or using employee communications. You cannot monitor their messages or calls unless you receive explicit permission to do so. Additionally, you cannot force them to install monitoring software on their personal devices.

Since business-owned equipment used during the course of employment is a Title I exemption, you should provide a computer, phone and email account if you want to monitor the messages and calls your remote staff makes. Consider obtaining their permission or providing notice of your activities to clear up any confusion.

Keep an Eye on Regulations as They Evolve

Since telecommuting is relatively new, many laws are lagging. While various state and local governments have issued their “final word” on numerous issues, employing remote workers is still a legal gray area in many places. For now, keep an eye on relevant regulations that are posed to change as regulatory agencies catch up.

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About the Author:

Zac Amos is the Features Editor at the tech magazine ReHack, where he covers cybersecurity and IT. When he’s not writing, you can find him reading up on the latest security trends. For more of his work, follow him on Twitter or LinkedIn.

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