California Labor Laws for Remote Workers

It is legal for employees to work from home in California, and subject to the employment laws of the state and locality where they are physically present and working.

By Douglas Wade, Attorney

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What are the legal implications of telecommuting?

Telecommuting, or remote work, has several legal implications that employers and employees need to consider. First, it is important that employers establish clear and comprehensive employment agreements or contracts that address the terms and conditions of remote work period this includes outlining job responsibilities, work hours, compensation, benefits, confidentiality obligations, intellectual property rights, and termination provisions. Having a written agreement helps avoid misunderstandings and provides legal protection for both parties.

Employers must ensure compliance with wage and hour laws even for remote workers. This includes paying at least the applicable minimum wage, providing overtime pay for eligible employees, tracking and compensating for all hours worked, and granting meal and rest breaks as required by law. Employers should implement systems to accurately record remote workers’ working hours.

Some states, including California, require employers to reimburse remote workers for necessary business expenses. Employers should establish clear policies regarding expense reimbursement and communicate these policies to remote workers to avoid potential legal issues.

Employers have an obligation to provide a safe work environment, even for remote workers. This includes ensuring that remote workers have appropriate equipment, ergonomic setups, and resources to perform their job duties safely. Employers may need to conduct assessments or provide guidelines for remote workers to maintain a safe and healthy workplace.

It is also recommended that employers take measures to protect sensitive information and ensure data privacy and security for remote workers. This includes implementing secure remote access systems, providing training on data protection practices, and establishing policies for the handling of confidential information. Compliance with data protection regulations may also be required.

Remote workers may be eligible for workers’ compensation benefits if they sustain work-related injuries or illnesses. Employers should ensure that remote workers are aware of the procedures for reporting and filing workers’ compensation claims.

Telecommuting may have implications for tax and employment laws, including state and local taxes, jurisdictional issues, and compliance with employment laws specific to the remote worker’s location. Employers should be aware of the legal requirements in each jurisdiction where they have remote workers and seek appropriate advice if necessary.

It is important for employers to consult with a corporate attorney in California to ensure compliance with applicable laws and regulations when implementing or managing telecommuting arrangements. Employees should also familiarize themselves with their rights and obligations as remote workers to protect their legal interests.

What Are the Labor Laws for Remote Workers in California?

Let’s start with the basics: working remotely in California is legal and becoming increasingly more common. For example, 15% of office workers in San Francisco will remain remote through 2023. While remote work is becoming commonplace, employers and employees must agree on certain rules, rights, and regulations. The protections afforded to remote workers differ from those afforded to independent contractors.

Remote Workers vs. Independent Contractors

Unlike independent contractors, remote workers receive the same protections and rights as in-person workers under California labor laws. California law requires employers to recognize these rights for remote workers, which include:

  • Paid time off
  • Paid lunch
  • Paid overtime
  • Other rights, sometimes specific to job or location

The influx of remote workers is a relatively new phenomenon, and workers need to be aware of these rights. If remote workers are denied one or more of these rights, then it is appropriate that they seek action.

An Example

Bill is a remote worker for the Parks Department in San Francisco and spends his eight-hour shift navigating spreadsheets. After a few months of work, Bill examines his paystubs and realizes that although he only spends 30 minutes eating lunch daily, the parks department is subtracting his lunchtime from his paycheck.

Bill faces a choice: immediately contact a lawyer, or speak to his supervisor. Bill decides to arrange a meeting with his manager, and luckily, she corrects the oversight and issues Bill his back pay.

The key here is that Bill was conscientious enough to check his paycheck and reacted reasonably. If his manager Diana had denied bill his rightful lunch pay, Bill had every right to contact an attorney. Moreover, the bill’s rights as a remote worker extend to employees who have disabilities under the Equal Employment Opportunity Commission (EEOC).

What is the EEOC Responsible For?

The EEOC in California recognizes numerous remote work arrangements as suitable accommodations for employees with disabilities. Anti-discrimination laws dictate that employers must offer those with disabilities the option to work remotely. For workers who need it, this option involves a type of work and work hours that are equivalent to the work completed in person.

An Example

Jessie has a documented auto-immune disease that makes commuting to and from work difficult. When San Diego travel agency Sunshine Travel hires Jessie, they agree to allow her to work from home. Jessie’s contract stipulates that he may visit the office when and if he feels up to it but will never be required to work in person in the San Diego office. Jessie is a careful person by nature and has an employment attorney look over the contract before he signs it.

A year later, Jessie is a successful travel agent, bringing in numerous clients for the company. Jessie is also known for his Zoom meetings, which always end with a funny joke. Jessie’s Jokes inspire the office, and all parties are happy that he works under California’s labor laws.

Additional Labor Laws

Experts agree that California will probably add additional labor laws as the remote working trend continues to gain steam. Likewise, the United States and Congress will probably need to look at existing federal labor laws as the market changes and possibly add to them.

What Are the Legal Implications of Telecommuting for Remote Workers?

Telecommuting is when workers use technology to work from home. The employer has to establish guidelines for telecommuting.

Employers’ Telecommuting Policy

When California employers establish a procedure for telecommuting, the policy specifies what exactly the employer considers “working in a remote setting.” The policy should also provide information regarding maintaining records.

The Fair Labor Standards Act (FLSA) covers most work employees complete. However, the FSLA does not specifically define employee “work.” Therefore, employers must create detailed telecommuting rules for each job position.

It is not enough to simply come up with a procedure, however. Employers must be certain to communicate the policy to employers and require each employee’s signed consent in agreement to the conditions and terms of the policy. Employers and employees must also agree on a sensible plan to track hours worked and other important records.

Are Employers Required To Pay For Internet For Remote Employees?

Under California Labor Code, businesses must reimburse their workers for reasonable expenses. These include any losses that the worker incurs while performing their duties. However, defining reasonable expenses can be difficult for remote workers and their employers.

Grounds for Reimbursement for Remote Workers

As remote workers become a more sizeable demographic in California, employers must determine what expenses qualify for reimbursement. Possible examples include, but are not limited to:

  • Cell phone data
  • Internet access and wi-fi fees
  • At-home tech expenses due to government-issued technology that cannot go home
  • Desktop, laptop, and printer purchases

An Example

Paula is excited about her new date entry position as a remote worker for Sea World San Diego. An avid dolphin enthusiast and environmentalist, Paula was so excited when she took the job that she overlooked a few details. After a month, she realizes she is still paying for her wi-fi bills and web access, and these bills have gone up.

Paula checks in with her supervisor and then with human resources. Patiently, the head of human resources, Norman, explains that Paula must document her internet usage to receive her reimbursement. A month later, the company pays Paula’s bills with reimbursement, and everything is swimmingly, including the dolphins.

What are the Disadvantages of Workplace Flexibility?

One of the main disadvantages of remote work that applies to both employers and employees is the difficulty of tracking hours. For example, Paul, who works remotely for a seltzer company, could be working overtime but not being compensated for the extra hour due to problems with counting hours. Or, Paul could be working less than agreed but paid for the full amount.

In California, workers are entitled to rest and meal breaks to help employees and employers more accurately track hours. These breaks intend to help employees consistently structure their remote workdays with the benefit of short daily breaks.

Rest, Food and Drink Breaks for California Workers

All California remote workers receive a 10-minute rest break per four hours of work. They also are entitled to a 30-minute unpaid food and drink break for every 5 hours of work. If employees decide not to take the 30-minute break, they are not allowed to work for more than six hours total during the entire day.

For employers, these rules are challenging to enforce with remote employees. Many remote employees work on unique schedules based on specific demands and engagements. For example, Mary works 25 hours a week for a law firm, but she works from 8 am to 1 pm daily based on her children’s school schedules.

Employees with divergent schedules can disrupt the feeling of workplace commonality and make both workers and employers feel disconnected from each other. It can also be difficult for employers to ensure that all workers take correct breaks when employees start and end their respective shifts at different times.

Are There Potential Legislative Solutions for Problems With Remote Work Schedule Flexibility?

Assembly Bill 1028, The Telework Flexibility Act, provided employees and employers with greater flexibility in remote work situations. The bill seeks to:

  • Apply flexible parameters to the workweek
  • Give employees the right to request their remote work schedule
  • Give employees the ability to work up to 10 hours per day
  • Ease employers’ need to pay overtime outside of the 8-hour-a-day limits

Although this bill was vetoed in 2022, it is still worth mentioning because of the changes it sought to enact. Many California residents seek ways for the state to embrace more workplace flexibility. Even though it failed, the Telework Flexibility Act may inspire proposals for future bills and changes.

Experts predict that 25% of all jobs in North America will be remote by 2022, signaling that this trend is becoming a reality. If you have questions about remote work or California’s labor laws, contact the experienced employment attorneys at Nakase Wade today for a free consultation.

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