Lathrop GPM Partner Michael Manoukian authored an article for the Daily Journal exploring the legal challenges and compliance obligations for employers with remote or hybrid workforces in California. The article emphasizes that while remote work offers flexibility to employees, employers must remain vigilant to comply with strict state and federal wage and hour laws.
Michael outlines three core areas that demand particular attention:
- Hybrid workforce policies: Employers should have well-drafted and consistently enforced policies for timekeeping, overtime, and meal and rest breaks, as these can serve as critical evidence in litigation. He also recommends using a secure e-signature platform to ensure that remote employees have received and acknowledged important documents.
- Timekeeping and compensation: The article highlights the increased risk of “off-the-clock” work in remote settings and advises employers to implement robust timekeeping systems that require affirmative login/logout and prevent retroactive edits without supervision.
- Expense reimbursement: Michael explains that California law requires employers to reimburse employees for “necessary expenditures” incurred while working, and this obligation is broader for remote employees. This can include expenses for internet service, office supplies, ergonomic equipment, and utilities. He also notes that flat stipends are permissible, but only if they reasonably cover actual expenses.
Michael concludes that employers must align their remote work models with rigorous compliance practices, including enforceable policies, reliable timekeeping tools, and thoughtful reimbursement strategies, to mitigate the amplified risks associated with a dispersed workforce.
Read the full article here [SUBSCRIPTION REQUIRED]: Remote control: Enforcing California wage and hour laws with a dispersed workforce