Navigating Employment Laws Across State Lines: What Employers Need to Know

Managing remote employees across state lines comes with unique legal challenges. In this month’s Q&A, The Workplace Advisors break down which state laws apply to remote workers, covering topics like wage laws, leave policies, and restrictive covenants. Here’s what employers need to know to stay compliant and support their teams effectively.

Question: We are based in one state but have two remote employees who work in other states. What employment laws do we need to follow?

Answer: In most cases, you need to follow the laws of the state the employee works in. Aspects such as minimum wage, overtime, paid sick leave, paid leave, payout of vacation at termination, acceptable payroll deductions, and protected groups follow the laws of the state where the employee works.

However, laws such as enforcing restrictive covenants (i.e., non-competes and non-solicitation) may fall under either state's jurisdiction depending on legal precedent.

As with differences between state and federal law, you must defer to the law which most favors the employee. However, you are allowed to apply a more generous standard to all employees if you find it easier to manage.