California Labor &
Employment Law Blog
CDF Wage and Hour Task Force – Monthly Tips: Common Pitfalls Associated with Remote Workers
Apr 3, 2023

CDF Wage and Hour Task Force – Monthly Tips: Common Pitfalls Associated with Remote Workers

Topics: Wage & Hour Issues

This is the third post in our monthly series of CDF’s Labor & Employment Law Blog providing California employers with wage and hour compliance tips and best practices.

As the health risks of the pandemic wind down, the complexities of offering remote work endure. Some employers are still offering full remote work, while others offer a hybrid to remain competitive and retain employees. Indeed, workers regularly request expect at least a partial remote work schedule. Allowing any remote work by non-exempt employees has its risks. The following discusses some of the pitfalls that California employers should be mindful of when managing remote workers and best practices to help avoid them.
Employers are responsible for complying with all of the same wage and hour laws for non-exempt workers, whether they are remote or not. The hot spots related to these laws and remote workers are claims for off-the-clock work/unpaid wages, meal and rest break violations, and unreimbursed expenses.

Timekeeping

To help manage these issues, employers should consider disseminating a timekeeping policy for remote workers and perhaps implement tracking software to monitor work activity. Accurately reporting all time work is essential as well as a strict prohibition of off-the-clock work. While tracking software is very helpful, a requirement that remote employees confirm in writing that they have accurately reported all of their time worked will go a long way in protecting the company and defending against violation claims if they arise in the future. Additionally, employers should 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.

Meal and Rest Breaks

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.

California Labor Code Section 2802 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 usageEmployers may believe they have provided all necessary equipment to remote workers that are 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. Keep in mind, that 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 as well as provide 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 as well as have a mechanism to address, with proper documentation, amounts that he or she does 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.

For additional information regarding remote work issues, see CDF’s prior blog posts:  
•    Remote work reimbursement
•    Out-of-state remote worker and tax issues
•    Remote work policies

If you have any questions about this blog post or would like to schedule a wage and hour compliance check, please contact the authors of this article, Nancy “Niki” Lubrano or Brian Cole, or your favorite CDF attorney.

Be sure to subscribe to CDF’s blog here to ensure you receive these regular monthly wage and hour law tips.

About CDF

For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor in Chief

Sacramento Office Managing Partner and Chair of CDF’s Traditional Labor Law Practice Group. Mark has been practicing labor and employment law in California for thirty years. His practice has a special emphasis on the representation of California employers in union-management relations and handling federal and state court litigation and administrative matters triggered by all types of employment-related disputes. He is also adept at providing creative and practical legal advice to help minimize the risks inherent in employing workers in California. He recently named “Sacramento Lawyer of the Year” in Employment Law-Management for 2021 by Best Lawyers®.
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