Remote Work Policy

A Remote Work Policy in the United States establishes the obligations and procedures governing the conduct it regulates.

The legal framework governing remote work in the United States spans multiple federal statutes and a patchwork of state laws. The Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., requires employers to track all hours worked by non-exempt employees — including hours worked at home — and to pay overtime for hours in excess of 40 per week. The Department of Labor's Wage and Hour Division (WHD) has issued Field Assistance Bulletin 2020-5, clarifying that FLSA obligations apply equally to remote and in-office work. Employers who fail to track and compensate remote employees' overtime face the same FLSA liability as employers with in-office overtime violations.

State wage and hour laws impose additional obligations that vary significantly by jurisdiction. California Labor Code § 2802 requires employers to reimburse employees for all necessary business expenses, including a proportionate share of home internet and phone costs for remote workers. Illinois's Wage Payment and Collection Act, Massachusetts's Wage Act, and equivalent statutes in several other states impose similar reimbursement requirements. A remote work policy that addresses expense reimbursement comprehensively protects employers in states with reimbursement obligations and reduces employee disputes.

OSHA's General Duty Clause (29 U.S.C. § 654(a)(1)) technically applies to home offices, but OSHA has long exercised enforcement discretion and does not inspect home offices of employees working for employers in non-hazardous industries. OSHA's 2000 policy letter clarified that the agency will not conduct inspections of home offices or hold employers liable for employees' home office conditions in non-regulated industries. However, employers are well-advised to provide ergonomic guidance for home office setup to reduce workers' compensation exposure from remote work injuries.

A Remote Work Policy is needed by any U.S. employer that permits or requires employees to work from locations other than the employer's physical office on a regular, recurring, or indefinite basis. The policy translates the general employment relationship into the remote work context and protects both employer and employee by establishing clear, documented expectations.

Employers transitioning from in-office to hybrid work models need a policy that defines which roles are eligible for remote or hybrid schedules, how many days per week each eligible role must be physically present, and how hybrid schedules are approved and managed. Without a written policy, managers apply inconsistent standards, creating employee relations problems and potential discrimination claims when some employees receive more favorable remote arrangements than others.

Employers with multi-state remote workforces need a policy that accounts for the varying state law obligations that apply when employees work in states different from the employer's state of incorporation or primary operations. California, New York, New Jersey, Massachusetts, and Illinois each impose distinct wage and hour obligations, sick leave requirements, and expense reimbursement duties on employers whose employees work in those states, regardless of where the employer is headquartered. A policy with state-specific addenda or a general provision requiring compliance with the employee's work location state law addresses this multi-state complexity.

Employers in technology, financial services, healthcare, and other regulated industries need remote work policies that specifically address data security requirements for remote work — including requirements to use VPN connections for access to company systems, prohibitions on using public Wi-Fi for sensitive work, and requirements for secure physical storage of printed documents. Health information subject to HIPAA, financial data subject to Gramm-Leach-Bliley Act (GLBA) security requirements, and payment card data subject to PCI DSS standards each carry specific security obligations that a remote work policy must address.

Employers who provide company-owned equipment for remote work — laptops, monitors, phones, headsets — need a policy that documents what equipment is provided, who is responsible for maintenance and repair, what happens to equipment when employment ends, and what restrictions apply to personal use of company equipment. California and several other states require that company-provided equipment be maintained at the employer's expense.

A complete Remote Work Policy for U.S. employers must address the following key provisions to effectively manage the legal, operational, and compliance dimensions of remote and hybrid work.

The eligibility and approval section defines which job categories, roles, and seniority levels are eligible for remote or hybrid arrangements, the approval process for individual remote work agreements, and any trial period requirements for new remote arrangements. The policy should state clearly whether remote work is a right, a privilege granted by manager discretion, or a defined benefit for certain roles — language that a court would apply if a remote arrangement is revoked and the employee disputes the revocation.

The work hours and overtime provisions establish the employee's required core hours (the specific hours during which the employee must be available regardless of time zone), how time is recorded and reported, and the policy's compliance with FLSA overtime requirements. For non-exempt employees, the policy must require daily time record submission and prohibit off-the-clock work. For exempt employees, the policy should address minimum availability expectations without creating an hourly tracking arrangement that could jeopardize exempt status under FLSA § 13(a)(1).

The designated workspace section requires the employee to maintain a dedicated, safe, and ergonomically appropriate home office space, to comply with OSHA-aligned ergonomics guidance for monitor height, chair adjustment, and keyboard positioning, and to report any home office injuries through the employer's standard workers' compensation reporting process. The policy should clarify whether the employer will conduct a home office inspection or rely on employee self-certification.

The equipment and expense reimbursement section specifies what equipment the employer provides (company-owned laptop, headset, second monitor), what technology costs the employer reimburses (a monthly internet stipend, cell phone allowance), and the process for submitting reimbursement requests. California Labor Code § 2802 reimbursement obligations should be addressed for any California-based remote employees, including a specific monthly internet and phone reimbursement amount or methodology.

The data security and confidentiality section requires remote employees to: use the employer's VPN for all access to company systems and data; store confidential information only on encrypted company-issued or company-approved devices; prohibit use of public Wi-Fi for work involving confidential data without VPN protection; secure printed documents containing sensitive information; and report any data security incidents through the employer's incident reporting process. For employers subject to HIPAA, GLBA, or PCI DSS, the policy should incorporate the applicable regulatory requirements by reference.

The electronic monitoring disclosure informs employees that the employer may monitor company-owned devices, network activity, email, and communication tools, as required by Connecticut General Statutes § 31-48d, Delaware Code tit. 19 § 705, and New York Labor Law § 52-c for employees in those states, and as a general disclosure for all remote employees.

The performance and communication expectations section defines the communication tools the employee is required to use, expected response times for messages and emails during core hours, participation requirements for scheduled meetings, and the performance evaluation process for remote employees.

The policy modification and revocation section states that remote work is a revocable privilege subject to business needs, that the employer may require in-office attendance with reasonable advance notice, and that violation of the remote work policy may result in revocation of remote work authorization and disciplinary action up to and including termination.