With many pandemic restrictions lifted, many employers continue to offer full remote work or a hybrid to remain competitive and retain employees. Allowing any remote work by non-exempt employees has risks of which California employers need to be aware as they manage remote workers.

Whether or not they work remotely, employers must comply with all of the same wage and hour laws for non-exempt workers. Issues with non-exempt remote worker management often results in claims by such workers for off-the-clock work/unpaid wages, meal and rest break violations, and unreimbursed expenses.

To assist management employers should consider disseminating a timekeeping policy for remote workers and, potentially, implement tracking software to monitor work activity. Accurate reporting of all-time worked is essential as is a strict prohibition on off-the-clock work. While tracking software can be helpful, a requirement that remote employees confirm in writing that they have accurately reported all of their time worked will in itself help protect the company and assist it in defending against violation claims. Employers should also strictly prohibit emailing, texting, and phone calls when not clocked in, and require that all supervisors and upper management refrain from contacting non-exempt employees after hours.

Remote workers are entitled to compliant meal and rest breaks even when working from home. Additionally, the start and stop times of meal breaks should be accurately recorded to the minute – no rounding. To avoid unintended interruptions to meal and rest breaks of remote workers who may believe they are being helpful by responding to calls and emails even though they are on breaks, employers should distribute a meal and rest break policy for remote workers prohibiting any work while on breaks. Employers should also consider setting a break schedule so that supervisors know when workers are unavailable to help eliminate potential interruptions.

The California Labor Code requires employers to reimburse employees for “all necessary business expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” For remote workers, this may include internet usage, computer equipment, and cell phone usage. Even with unlimited cell phone plans, courts have held that employers must pay some reasonable percentage of the employee’s cell phone bill, if used for work. The same reasoning applies to internet usage. Employers may believe they have provided all necessary equipment to remote workers that is necessary to perform their duties. But there are still potential expenses that could be recovered for office supplies, furniture, as well as traveling to and from the company’s place of business. Once an employee is fully remote, that becomes the employee’s “regular work site” for purposes of evaluating and reimbursement of travel time and mileage.

To manage the risks associated with business expense claims of remote workers, employers should create a business expense reimbursement policy and provide employees with the necessary supplies and equipment needed to perform their job remotely and a monthly stipend for incidental expenses like cell phone or internet, if required to be used for business reasons. Employees should still be required to submit a reimbursement request for any additional expenses incurred and Employers must have a mechanism to address, with proper documentation, amounts that employees do not believe are being covered by a monthly stipend. Finally, employees should be required to obtain approval in advance before purchasing any larger or more expensive items to determine if such expenditures are reasonably necessary before seeking reimbursement.

If your business permits remote work by non-exempt employees on a full-time or even hybrid basis, contact your business attorneys to ensure that all procedures and rules are in place for these workers. Otherwise, you will likely be confronted with a remote worker wage, hour, and/or expense claim.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.