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How does remote work impact wage and hour compliance?

On Behalf of | Sep 26, 2024 | Employment Law

With the rise of remote work, employers face new challenges regarding wage and hour compliance, particularly in managing overtime. Ensuring adherence to California’s labor laws requires a careful approach regarding remote work settings.

Tracking hours

Accurately tracking work hours for remote employees is a challenge for employers. Employers find it difficult to monitor when employees start and stop working without direct supervision. California law requires employers to maintain detailed records of employee hours, including breaks and overtime. Failing to do so can lead to wage disputes and costly penalties. 

Employers should implement time-tracking software that logs work hours and requires employees to confirm breaks and overtime. Regular audits of time logs help identify discrepancies early. This ensures compliance with state regulations.

Overtime and off-the-clock work

California has strict overtime laws. Non-exempt employees must receive overtime pay for any work beyond eight hours in a day or 40 hours in a week. Remote work complicates this, as employees may work beyond their scheduled hours without reporting it. 

Employers should establish clear overtime policies, requiring employees to get approval before working additional hours. Employers should enforce clear expectations for stopping work and logging out of company systems at the end of shifts.

Managing breaks

Non-exempt employees must get mandated meals and rest breaks. Ensuring these breaks occur can be tricky in a remote setting. Employers should communicate their break policies, set up automatic reminders, and use time-tracking systems to confirm compliance.

Employers can implement “missed break” reporting tools. This allows employees to report missed breaks so employers can address the issue. If employers fail to enforce breaks, they may face significant penalties.

Remote work compliance

As remote work becomes more prevalent, employers must adapt their practices to maintain compliance with wage and hour laws. By staying vigilant and addressing potential compliance issues early, businesses can successfully manage the unique challenges that remote work presents while safeguarding their operations.

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