Issue link: http://www.insightdigital.biz/i/1497566
6 | forwardHR • Sp r i n g 202 3 LEGISLATIVE Avoid remote work pitfalls Flexible remote options must be assessed carefully By Storm B. Larson, Attorney, BoardmanClark LLP F or many employers, prior to the COVID-19 pandemic, allowing employees to work from home on a regular basis was not an option. Now, three years aer the first COVID-19 case was confirmed in the United States, many employers are offering hybrid or fully remote work arrangements. is marks a significant increase in the flexibility that many employers are now choosing to offer. However, this flexibility can sometimes lead to inadvertent problems. Issues can sometimes arise, for example, with fully remote employees who decide to move out of state without informing the employer. e employee may believe the decision to move is a personal one which does not involve the employer; however, moving to a new state subjects the employer to the applicable laws of the new state. Suppose, for example, that ABC Company is based in Wisconsin and only has employees who work in Wisconsin. Suppose further that a fully remote worker decides to move to Iowa without telling the employer. Because the employee is now living and working remotely from Iowa, the employer is now likely subject to Iowa state employment laws, including state income tax, state unemployment tax, worker's compensation, employment discrimination, and wage and hour rules. ere may also be penalties, depending on the state, for issues like operating a business in the state without registering with the proper state authorities. Because these issues are arising with increased frequency, it is a good idea for employers to clearly set expectations that employees must remain living in Wisconsin or must inform the company of any plans to move out of state in a timely fashion. is will reduce the risk that an employee surprises the employer with news of a new work location. Because there are many different state laws and even local ordinances that may apply to employees working in different locations, it is imperative that employers contact their legal counsel as soon as they learn that an employee is deciding to move or has already moved. is will allow the attorney to assess the risk that an employer may face for operating in a new jurisdiction and to assess practical options and solutions with the employer. ■ Attorney Storm B. Larson is an associate with BoardmanClark LLP where he practices labor & employment law.