Challenges With Remote Work

Employers face many challenges with remote workers — some obvious, some not. Remote teams can be managed effectively, but employers need to know what to expect and put the right mechanisms in place. They should also adjust expectations around working hours, particularly for exempt employees.

Reimbursement of Expenses

Some expenses are obvious — paper, pens, printers, computers for working from home. Less obvious: some employers may need to reimburse a portion of an employee’s Wi-Fi bill, part of their cell phone bill (if they’re required to use a personal phone for work), and office furniture purchased to enable remote work. An employer may assume these aren’t their responsibility — the employee already had the phone, and an unlimited plan means no added cost — but the obligation depends on the state.

A California Court of Appeal has held that employers must reimburse employees for a reasonable percentage of cell phone costs even when the employee incurs no extra expense from work use. That has significant ramifications for telecommuting, where employees use their own Wi-Fi, phones, and printers without additional out-of-pocket cost. This isn’t the rule everywhere: in most states, employers aren’t required to reimburse business expenses, and federal law only requires reimbursement when failing to do so would drop wages below minimum wage. Several states — including California, the District of Columbia, Illinois, Iowa, Massachusetts, Montana, and New York — require reimbursement of necessary business expenses, though not all require reimbursing costs the employee already incurs for personal use. In most of those states, the employer only covers additional costs: an upgraded Wi-Fi or phone plan, furniture, printers, paper, ink, extra monitors, and similar.

Knowing Employees Are Actually Working

The biggest challenge is knowing employees are working during work hours — fundamentally an issue of proper management. A manager should know what subordinates are working on and how effectively they’re performing. Remote work brings distractions — laundry, kids, errands — and employees who let these dominate may not be suited to it. If a remote worker’s load is light, give them work; if there’s genuinely nothing to do, that’s a staffing issue, not the employee’s fault.

Keep in mind that exempt employees are paid for their work, not their time — an efficient exempt employee pulling their weight may be worth keeping even if they aren’t working a full eight hours. The harder case is the non-exempt employee, who is paid for their time. Whether a non-exempt employee works in the office or remotely, the business is responsible for complying with all wage-and-hour laws, including overtime, time recording, and meal and rest breaks.

Maintaining a Professional Environment

Employers should have a code of conduct and communicate expectations even for remote work, tailored to the employee’s tasks. If someone takes a client video call from home, set the expectation of professional attire and a suitable background — no beds or clutter. Ideally, require a blank background (a plain wall or screen) to avoid issues with symbols or artwork visible in some employees’ homes. If an employee lacks such a space, the employer should provide a screen they can use when needed.

Return of Work Equipment

Provide remote employees with work equipment so the employer isn’t responsible for personal devices or the accidental dissemination of confidential information. But sending equipment to a home makes retrieval harder when employment ends. To make returns easy: terminate with enough time left in the workday for the employee to return equipment (avoiding extra paid time), provide a mechanism to claim mileage for drop-off (since their home may be their workplace), and arrange a shipping service with a pre-paid label where possible. These steps prevent employees from holding equipment indefinitely and avoid burdening them with packaging or shipping costs.

Seek Counsel

Given the complexities in this area — and the number of employees now working remotely — employers implementing telecommuting programs should consult counsel to ensure compliance with their legal requirements. We can help.

Frequently Asked Questions

Do employers have to reimburse remote work expenses?

It depends on the state. Federal law only requires it when non-reimbursement would drop wages below minimum wage, but states like California, Illinois, Massachusetts, New York and others require reimbursement of necessary business expenses — California even requires covering a reasonable share of personal cell phone costs used for work.

How do wage-and-hour laws apply to remote workers?

Fully. For non-exempt remote employees, the business must still comply with overtime, time recording, and meal and rest break rules — just as in the office. Exempt employees are paid for their work rather than hours.

Can an employer set rules for remote employees' video call backgrounds?

Yes. Employers can require professional attire and an appropriate background. A neutral, blank background is often best to avoid issues with personal symbols or artwork, and the employer can provide a screen if the employee lacks suitable space.

This article is general information from Accord & Shield Legal, PLLC and is not legal advice. Reading it does not create an attorney-client relationship. For guidance on your specific situation, please consult a qualified attorney.