Creating a Remote Work Policy for Your Business

Remote work is now a standard feature of many workplaces. A well-drafted remote work policy establishes clear expectations, protects the company legally, and ensures productivity. Without a formal policy, remote work arrangements tend to become inconsistent and difficult to manage.

Eligibility and Approval

Define who qualifies for remote work and how decisions are made:

• Specify which positions or job functions are eligible based on the nature of the work
• Establish an application and approval process with clear criteria
• Identify who has authority to approve or deny remote work requests
• Address whether remote work is a benefit that can be modified or revoked
• Clarify whether remote work is full-time, hybrid, or occasional
• State that remote work arrangements can be modified based on business needs with reasonable notice

Avoid blanket policies that inadvertently discriminate. For example, denying remote work to an employee with a disability who could perform their essential functions remotely may trigger ADA obligations.

Work Hours and Availability

Remote employees need clear expectations about when and how they work:

• Define core hours when employees must be available
• Specify expectations for response times to emails, messages, and calls
• Address time tracking requirements for non-exempt employees, who must be paid for all hours worked
• Clarify overtime authorization procedures
• Establish rules for meal and rest breaks consistent with applicable state law
• Address whether employees may work from locations outside their home state, which can trigger multi-state tax and employment law obligations

Equipment and Expenses

Determine who provides and pays for remote work necessities:

• Company-provided equipment (laptops, monitors, phones) and maintenance responsibilities
• Reimbursement policies for internet, phone, and office supplies
• Several states, including California and Illinois, require employers to reimburse employees for necessary business expenses, which can include internet and phone costs for remote workers
• Address insurance and liability for company equipment in the employee's home
• Establish procedures for returning equipment upon separation

Security and Confidentiality

Remote work introduces unique data security risks:

• Require use of VPN and encrypted connections for accessing company systems
• Prohibit use of personal devices for work unless approved and secured
• Establish rules for handling confidential and proprietary information outside the office
• Address physical security of work materials in the home environment
• Require compliance with all existing data protection and privacy policies
• Specify consequences for security breaches

Performance Management

Managing remote employees requires intentional effort:

• Set clear, measurable performance expectations and deliverables
• Establish regular check-in schedules between managers and remote employees
• Use consistent performance evaluation criteria for remote and in-office employees
• Train managers on effective remote team leadership
• Address underperformance through the same progressive discipline process used for on-site employees

Legal and Tax Considerations

Remote work can create legal complexities:

• Employees working in a different state may be subject to that state's employment laws, including wage and hour, leave, and tax requirements
• You may need to register as an employer in states where remote employees work
• Workers compensation coverage must extend to the remote work location
• Unemployment insurance obligations may arise in the employee's state of residence