Creating a Remote Work Policy: What Employers Need to Consider

Remote Work Is an Operational Decision

Allowing remote work is not simply a matter of handing out laptops. It implicates wage and hour compliance, tax obligations, workplace safety, data security, and management practices. Employers who offer remote work without addressing these issues create legal and operational risks. A written remote work policy that covers the key considerations protects both the employer and the employee.

Eligibility and Expectations

Who Can Work Remotely

Not every role is suitable for remote work. Define eligibility based on job function, not individual preference. Positions that require physical presence — operating equipment, serving walk-in customers, handling materials — are not remote-eligible. Positions that can be performed independently with technology-enabled communication may be.

State the eligibility criteria clearly and apply them consistently.

Work Schedule and Availability

Define expectations for work hours and availability. Will remote employees work the same hours as on-site employees? Are core hours required when the employee must be available for meetings and collaboration? How should the employee communicate their availability?

For non-exempt employees, be explicit: they must record all hours worked, take required meal and rest breaks, and obtain authorization before working overtime. The FLSA's requirements apply regardless of where the work is performed.

Performance Standards

Remote employees should be held to the same performance standards as on-site employees. Define deliverables, deadlines, and communication expectations. Manage by results, not by physical presence.

Legal and Compliance Considerations

Wage and Hour

The most significant compliance risk in remote work is unrecorded work time for non-exempt employees. When an employee's office is their home, the line between work and personal time blurs. Employees may check email before the shift, answer calls during lunch, or finish tasks in the evening without recording those hours.

Your policy should require non-exempt remote employees to use your timekeeping system to record all hours worked and prohibit off-the-clock work. Train managers not to assign or expect work outside recorded hours.

Tax and Nexus Implications

An employee working remotely from a different state than your business location may create tax nexus in that state, triggering withholding obligations, unemployment insurance registration, and potentially business income tax obligations. Before approving an employee to work from another state, assess the tax implications.

Workers' Compensation

Employees who are injured while performing work duties in their home office are generally covered by workers' compensation. Your policy should define the designated home workspace and require employees to maintain a safe work environment. Some employers require a self-certification that the home workspace meets basic safety standards.

Equipment and Expenses

State law in several jurisdictions requires employers to reimburse employees for necessary business expenses, including internet service, phone service, and equipment used for work. California, Illinois, and other states have expense reimbursement requirements that apply to remote workers. Define what equipment the company will provide and what expenses will be reimbursed.

Data Security

Remote work expands your data security perimeter. Your policy should address:

• Use of company-provided devices versus personal devices
• Requirements for secure internet connections (no public Wi-Fi for sensitive work)
• VPN usage for accessing company systems
• Physical security of company documents and devices at the home workspace
• Procedures for reporting lost or stolen devices

Communication and Collaboration

Remote work changes communication patterns. Establish norms for:

• How often remote employees check in with their manager
• Which communication tools to use for different purposes (email for non-urgent items, chat for quick questions, video for meetings)
• Expectations for camera usage during video calls
• How team meetings will accommodate remote participants

Managing Remote Employees

Managers of remote teams need to adjust their management approach:

Focus on output, not activity. You cannot observe a remote employee's work habits, and attempting to monitor every minute is counterproductive and erodes trust. Set clear expectations for deliverables and deadlines, and evaluate performance based on results.

Increase communication frequency. In an office, informal check-ins happen naturally. Remote managers need to schedule regular one-on-one conversations and team meetings to maintain connection and catch problems early.

Be intentional about inclusion. Remote employees can become invisible. Ensure they have equal access to information, opportunities, and recognition. Do not default to giving high-visibility projects to whoever is physically present.

Revocation and Modification

Your policy should state that remote work is a privilege that can be modified or revoked based on business needs, performance issues, or policy violations. Reserve the right to require on-site work when necessary.

A well-designed remote work policy enables flexibility while maintaining compliance and productivity. The investment in policy development pays for itself in reduced legal risk and clearer expectations for everyone involved.