Description: Remote work has plenty of benefits both for employees and employers. But it becomes a challenge for HRs. Hiring employees you have to deal with complicated labor law. We gathered five crucial points you should consider.
Remote work is profitable both for an employee and an employer. The first ones can apply for a dream job from anywhere with no obligation to leave their place. Also, remote work saves lots of time and money you could spend on transport and outside food.
As for employers, it’s an option to reduce expenses, create hiring diversity, and develop their services. Imagine your worker is in the state with another time zone. It will help you increase the working hours of the client support team, which is only one example. According to the IWG Global Workspace Survey, in 2020, 82% of businesses use flexible locations of work to develop the work-life balance.
However, hiring a contractor, you meet with obstacles you should know about to avoid fines and fees. As these pitfalls mostly relate to the labor law, HRs are the main people who should prevent the company from them.
Thus, HR work becomes more complicated. Although it may seem that issues with remote workers can’t hurt the company a lot, it’s not true. There are many cases when those who work remotely apply to law assistance due to discrimination. Moshes law company is one of such law attorneys. Its professionals solve different types of issues.
Labor Law: Five Things to Know
Although there are plenty of things a human resource manager should know about the remote work, we decided to group them. So, it will be easier to concentrate on each.
Of course, we will start with the most significant issue. The labor regulation differs regarding the state. That’s why every business has such employment law questions: what legislation should I follow if my headquarter is in one state and a worker is in another? What legislation prevails? The worker’s rights will be determined according to the law of the place where he/she lives.
Thus, before hiring employees from another state, you should check all the crucial points. Wage is the most complicated point. The Fair Labor Standards Act is the US employment law that regulates wage and hour requirements.
You are obligated to pay for the worked time. Besides the rules of federal law, you should be familiar with specific local regulations. For example, the minimum wage requirement, how to calculate payroll taxes, overtime, what information should be on the worker’s pay stubs, and whether the frequency of payday differs from the state of the headquarter.
Payroll is an essential part of the waging process with remote employees. You should follow the rules of the exact state. It is worth hiring best practices who know different state laws, especially if you have many remote workers.
You should also think about such things as paid sick time, benefits, employment paperwork, employee’s insurance, etc.
If you hire someone from another country, be ready for harder challenges. You must comply with the legislation of that country where your worker lives. Firstly, check whether the company has to register in that country or not.
If you hire an employee from another country or state, you need to know how to manage the employment law for human resource practice and its changes.
The first thing is to find out the critical points of the labor law in the state where your worker is. It may take lots of time, especially if you plan to hire several remote employees. Unfortunately, there is no specific website where you can find all the necessary regulation issues. You will have to deal with plenty of sources.
Okay, imagine you sorted it out. Still, the legislation changes frequently. Another challenge is that you won’t get any alerts. Thus, you will have to look for updates yourself.
If you don’t build an efficient system, there are risks you will not comply with the law, and the company may be fined. We would suggest you three options that you can use to manage the regulation issues.
- The most ineffective way is to do the whole work on your own. You will need to research the law of every state you hire in and check many websites to find relevant information.
- The next option is to find an employment law attorney. The attorney should be fully equipped with the local legislation and inform you about every detail you should know. Also, they can notify you when an update occurs.
- The third option is to delegate these responsibilities to an outsource worker or a company. According to some research, almost 60% of respondents claim to turn to outsourcing to cut costs and save money. It would be better if you apply to a company as you need a reliable person who will do the task properly.
3. Labor Law Posters Compliance
It doesn’t look like a severe issue. Still, it is. Lots of laws obligate employers to place posters performing employee rights in the workplace. What should you do if your employee works at home? Should you send labor law posters via a post office or come yourself and place it on the wall?
Everything is easier.
First, you should check the local law regarding the requirements of the posting.
Second, it’s enough to send a post via email or post it on the company’s local platform accessible only for workers if the employment law does not determine another. Only if the legislation obligates you to provide a hard copy, you can send it via a post office.
The main challenge here is to find posting requirements. As we said above, the local law prevails, so the posting regulations should be check regarding the place your worker stays.
You will have to surf lots of websites. Moreover, these requirements also change frequently. But your remote employees should be notified on time together with in-office workers. Additionally, there is no specific legislation on how often a remote worker should access the hard copy of the poster, so you should be careful and check the local law.
The security issue matters, no matter what kind of workers you have. Still, when communicating with remote employees, privacy should be among the first points to consider. Imagine how much hackers can access private data if you don’t care about security.
Email addresses, personal information, passwords, financial data, and all the communication stuff can be stolen. Even holding a virtual interview can be dangerous without data protection. A data leak may hurt a company’s reputation and lead to negative consequences regarding the business.
If you are an HR manager, you should convince the CEO to implement systems to protect the data. It can be either an internal platform and a password system or simply 2-factor authorization. As an HR manager, you should ensure each employee, especially a remote one, understands responsibility for the information leak even during human resource interview questions. Create a company’s security policy, which every worker has to sign.
It seems strange you should care about the safety of remote workers as they don’t exist physically in the office. Still, the company must follow health and safety legislation. According to the PwC report, 42% of companies expect higher demand for employee protection as a result of COVID-19.
It’s the responsibility of the company to lower risks and implement control measures. If necessary, the company must provide special protection equipment that will prevent any possible injuries at work.
The HR manager should develop measures to control the health of every worker. Also, it’s crucial to predict all potential situations that can cause the law application.
Suppose you doubt how to do it. You have at least two ways:
- You can either attract your employees and develop a system together. It will help you evaluate the adequacy of the measures.
- Or you can create a system through which workers will report injuries and illnesses.
You should ensure the workers are responsible for their health and are obligated to report any injury or illness case. We would recommend organizing training for employees who work outside the office. It will help limit misunderstanding and create a working system.
To conclude, HR managers are responsible not only for hiring work from home but also for complying with the employment law in such unusual working situations. The most important thing every human resource professional should remember is that every state and country has its own set of labor rules. The company should comply with the law of the place where the worker lives.
Because of this, lots of challenges occur. A human resource manager has to deal with lots of information, which is split into many websites. Another problem is the frequency of law changes. The regulation policy changes at least several times during the year.
Thus, it’s crucial to stay up-to-date and check the information regularly. Especially because 74% of a recent survey considers flexible working the new normal. The HR manager should create an efficient system that considers wage, safety, privacy, and hour requirements, and the remote work won’t be a challenge anymore.