Things to Consider When You Hire Remote Workers from Out of State
As remote work increases and hiring managers are beginning to recruit more and more from out of state, staying compliant is more challenging than ever. When you hire from another state, it's important to consider their unique labor laws and compare them to your organization's own state laws and assess whether or not there are discrepancies. Here are some of the major areas to consider when you hire an employee from out of state.
Wages and Overtime
Make sure you are meeting any minimum wage requirements and are aware of any overtime laws from your employee's home state. Some states require workers to obtain permission from their supervisor before putting in overtime as well. If your organization offers employee stock options, it may be possible to designate which state's laws apply to the units. You will want to look into rules for both and be aware of which state's laws you need to follow in each instance.
Companies will need to stay abreast of local, state and federal filing deadlines, tax rates, and tax changes for their employee's home state. State and local laws may also vary when it comes to the information that must appear on paystubs, as well as payday frequency requirements.
If your employee quits or is let go, you need to be aware of how to handle their last paycheck as well. States differ on whether unused, accrued vacation must be paid out upon termination of employment or in their last paycheck.
Analyze whether or not you need to offer COBRA continuation, worker's compensation insurance, signage or other notices to employees. Some states may have varying regulations for lactation breaks as well as other employee breaks and rests throughout the day. Drug testing and hiring with regard to a candidate's criminal record are two other areas to keep in mind.
Some states mandate training such as anti-sexual harassment or anti-discrimination training as well as clearly communicated information about where an employee may file a complaint or a charge of discrimination.
Vacation and Leave
Did you know some states, such as Florida require that employers offer domestic violence leave?
You'll also want to look into any requirements around paid sick leave and accrued vacation time. Some states may allow employees to take accrued vacation time earlier, while other employees may need to wait through an introductory period to be eligible first.
SHRM offers this simple tool that compares labor laws throughout multiple states. When in doubt, follow the rule that offers the most protection for the employee's rights.
If you need help keeping all of these regulations straight, check in with our team. We can help recruit, hire and onboard your out-of-state employees as well as ensure your organization stays compliant as labor laws change. Email us to learn more!