How do I identify the state employment laws that apply to our remote workers?

How do I identify the state employment laws that apply to our remote workers?

Even with the waning of the COVID-19 pandemic, many employees are still working from home, in states quite distant from headquarters.

As we settle into this new reality, employers must grapple with a fundamental question: Which states’ laws apply to their remote workers?

Consider this: In a span of just under two weeks, the federal district court in New Jersey recently found:

Case # 1: New Jersey’s law against discrimination did not apply to a remote employee working from her home in New Jersey, rather, Pennsylvania law applied;

Case # 2: New Jersey’s law against discrimination did apply to a remote employee working from her home in New Hampshire.

The obvious take-away is that state employment laws may, or may not, have cross-border application. It depends on the specific facts involved.

The same challenge is present when considering other employment laws. Tax, unemployment, leaves of absence, workers’ compensation, and wage and hour laws all might have application across state lines – or they might not.

The question of which states’ laws apply can come up in a variety of scenarios, for example:

• When setting up a new remote worker in a different state.
    
• When a remote employee resists returning to the office, claiming that doing so would violate the law – perhaps they have a disability which they claim prevents them from returning.
     
• And where a remote worker in a distant state files an administrative agency charge or a lawsuit.

Employers take note: The question of which states’ laws applies to remote workers is complex, nuanced, and fact-specific, and you would certainly benefit from working with your trusted employment counsel to address any questions that may arise.