Understanding The Legalities Of Remote Work Policies

Preparing Your Business For Remote Work Policies: Legal Considerations & Best Practices

Remote work has become a staple in today’s work society. Thanks to technology, more and more employees are able to do their work from home and employers are allowing it. Remote work can be extremely attractive to those looking for flexibility, and employers benefit by attaining and retaining top talent that they can acquire from all over the nation and even the world! 

However, for all the benefits of remote work, it doesn’t come without its challenges, especially legally. There is much to learn and understand before implementing the ability to work remotely at your company. Working with a business attorney in Arizona  to create a remote work policy will be imperative.

Working Remotely & Its Legal Landscape

When a business is deciding whether or not to let some of its employees work remotely, it must look at some legal implications first. There are labor laws, privacy and data security concerns, tax implications, and more to consider. 

One important aspect that must be determined is worker classification. Will your remote worker be an independent contractor or an employee of your company? The answer to this question will determine important liability and tax questions related to your business. It is important to accurately identify your remote worker to avoid legal and financial penalties. 

• Remote worker Is Employee: The employer will be responsible for wages and benefits, workplace safety, reimbursements, tools and equipment, and performance management as if the employee was working on-location. The employer will also be responsible for the employer’s share of social security and FICA taxes.
• Independent Contractor: The employer is not responsible for payroll taxes, benefits, reimbursements, etc. The remote worker will take care of everything and has independence. They will be paid according to contract and will not have the rights afforded to employees under the law.  The independent contractor will be responsible for the employer’s share and employee’s share of social security and FICA taxes.

If you choose to hire individuals as employees instead of independent contractors, there are several considerations your company should look at:

Labor Laws Of Remote Work

Labor laws are an important part of remote work and an Arizona business attorney can help you comply. A business must remember and ensure compliance for factors such as:

• Minimum wage requirements
• Overtime pay
• Fair labor practices
• Safe working environment
• Training, equipment, and support

Remote Worker Tax Complications

Taxes are an important part of having a business. When all of your employees are on-location, taxes can be relatively normal. However, once you start hiring remote workers who live in different states or even countries, the different jurisdictions can make taxes more complex. 

If you have employees in different tax jurisdictions, you will have to stay apprised of the requirements where each employee is based. This is where consulting with an Arizona business attorney can be a huge advantage. 

Keeping Data Secure & Other Privacy Concerns

Employees that work remotely will likely have to access company systems and other data on their networks and with their personal computers. This can lead to concerns of privacy and data security. This is especially the case with cyber attacks and data breaches on the rise due to the popularity of technology.

There are ways to mitigate these issues such as:

• Creating detailed guidelines on handling sensitive data, acceptable use of devices, and reporting incidents.
• Securing access to company resources by requiring employees to use a Virtual Private Network and Multi-Factor Authentication.
• Use secure tools for communication, device protection, storage, and more.
• Performing regular audits of security practices.
• Creating an incident response plan for reporting and managing security breaches.

How To Draft An Effective Remote Work Policy

When drafting a remote work policy with an Arizona business attorney, there are several things you should consider including:

• Define The Purpose: Make sure the policy identifies why it is being implemented.
• Identify Who The Policy Applies To: Make sure the policy is clear as to who it applies to; full-time, part-time, specific roles, specific departments, etc.
• Talk About Expectations: Define required working hours, time zones, expectations for responsiveness, how to communicate, and more.
• Address Equipment & Technology: What equipment will your company provide and what are the guidelines for maintenance and return of the equipment? What are the expectations for using personal devices? 
• Ensure Data Security: Instruct your employees to use VPNs for secure connections, MFAs for account logins, and share guidelines on privacy and securing confidential information.
• Clarify Legal & Compliance Responsibilities: Make sure your employees are all aware of the local employment laws, tax reporting obligations, and any company-specific policies.
• Define Performance & Productivity Metrics: Set expectations for when tasks should be completed and what productivity should look like. 
• Health & Safety Guidelines: Make sure remote workers are informed of their responsibilities to maintain a safe working environment and address workers’ compensation details.

Navigating International Laws For Remote Workers

Due to the ability to work from anywhere, a company can hire workers all across the world. This allows companies to have a larger pool of employees to pick from so they can find the best talent available. However, hiring employees across the border can lead to legal complexities. 

Labor laws in the worker’s country, time zones, work hours, taxes, and more will come into play with international talent. Your business will also have to consider things such as cultural nuances, differences in work practices, communication styles, and business etiquette. 

An Arizona business attorney can help you navigate these areas when you have remote workers around the world. While it may seem too challenging, many companies find hiring people around the world to be well worth the compliance laws. 

Common Challenges Of Hiring Remote Workers & How To Avoid Them

While hiring remote workers can lead to many positive outcomes, there are some pitfalls. However, with proper mitigation, even these pitfalls can be avoided.

• Communication gaps: You can mitigate this by using consistent communication tools, schedule regular check-ins, and provide training on effective virtual communication.
• Decreased team cohesion: You can mitigate this by providing virtual activities for team-building and occasional in-person meetups. Celebrating achievements can also help..
• Reduced oversight: You can mitigate this by setting clear expectations and measuring goals, and installing monitoring software to the extent permitted by law. 
• Work-life balance issues: You can mitigate this by encouraging workers to set regular schedules and take breaks. Also, promote a culture that respects personal time. 
• Technological challenges: You can mitigate this by providing adequate IT support, ensuring your tools and software are reliable, and having contingency plans for critical operations.
• Unequal access to resources: You can mitigate this by providing stipends for home office equipment and offering guidance on setting up ergonomic workspaces. 

Hire An Arizona Business Attorney To Create Success When Involving Remote Workers In Your Business

Remote workers can benefit your business in many ways and it can be worth the effort to implement policies to ensure success. At Denton Peterson Dunn, we have over two decades of experience working as Arizona business attorneys. We want to make sure businesses are able to have legal expertise from the best, which is why we provide our top-notch legal work without the higher costs of large law firms. 

Don’t wait to get started drafting up policies to ensure success for your remote workers, contact us today!

Brad Denton – Denton Peterson Dunn

1930 N Arboleda #200
Mesa, AZ 85213
Office: 480-660-3249
Email: [email protected]
Website: https://arizonabusinesslawyeraz.com

7272 E Indian School Rd #540-132
Scottsdale, AZ 85251
Phone: 480-690-3283
Email: [email protected]