28 JULY / AUGUST 2022 Unemployment Insurance Employers generally need to register (i.e., have an unemployment account set up) in the state in which the remote employee works and pay premiums for that state’s unemployment insurance. Leave Leave laws (including sick leave, voter leave and military leave) vary greatly from state to state and by locality. For example, Indiana does not require paid sick leave, but other states such as Arizona, California, Maryland and Massachusetts do. Tennessee recently passed a law requiring employers to allow employees who are veterans to take Veterans Day as a paid or unpaid holiday if certain conditions are met. Minimum Wage and Overtime Minimum wage and overtime laws vary from state to state, and local ordinances may also apply. While Indiana’s minimum wage and overtime laws generally track federal law, many states have a minimum wage that is higher than the federal minimum wage. Similarly, some states require employers to pay overtime if an employee works more than a specified number of hours in a day. In California, for example, a nonexempt employee who works more than eight hours in a day is entitled to overtime even if he or she does not exceed 40 hours in the workweek. Overtime exemption requirements can also vary by state. The employer (and payroll provider) should know the law in the new state and in the city and/or county where the remote employee works. Drug Testing Drug testing laws vary from state to state, including what an employer can and cannot do with regard to marijuana and the workplace, and what steps must be taken before an employee can be required to submit to testing. Harassment and Discrimination States and localities have varying laws regarding anti-harassment and discrimination. Illinois mandates that employers: provide annual sexual harassment prevention training; keep records of the training; and report each year to the Illinois Department of Human Rights any adverse judgments or administrative rulings against the employer that find sexual harassment or unlawful discrimination. Employers that do not comply face stiff monetary penalties. Chicago also recently expanded its sexual harassment ordinance. Employers are required to annually provide a certain amount of sexual harassment prevention and bystander prevention training to all employees, provide additional training for managers and supervisors, plus have written policies and post notices. Miscellaneous There are myriad other miscellaneous employment laws. For example, for purposes of child support enforcement, Texas has a new hire reporting form that must be filled out and provided to the attorney general within a certain time period after the employee begins working in Texas. New York has a pay equity law which mandates, among other provisions, certain posting requirements. Employers that hire remote workers must comply with each state’s unique set of employment laws. It is also important to research and comply with all applicable city or county employment regulations or ordinances. Failure to comply with applicable laws and regulations can result in significant liability. Employee policies and handbooks should be updated accordingly. Typically, the easiest way to address those differences is through specific state riders or appendices being added into the company’s employee handbook for each state in which the employer has remote employees. Consult with experienced employment law counsel for further guidance. HB The information in this article is provided for general information purposes only and does not constitute legal advice or an opinion of any kind. You should consult with PIKEP GSYRWIP JSV EHZMGI SR ]SYV MRWXMXYXMSRŭW WTIGMƤG PIKEP issues.
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