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What Employers and Employees Need to Know
Remote work has shifted from a temporary solution to a long-term reality in many industries. Along with it has come a new set of legal questions, especially when employees move across state lines or work from home permanently. For both employers and employees in New York, the legal implications of relocation and remote work go beyond Wi-Fi and Zoom.
From tax obligations to wage laws and workplace protections, remote work arrangements require careful planning. Here’s what both sides should know to stay compliant and avoid surprises.
What Happens When a Remote Worker Relocates?
Whether moving from Manhattan to Buffalo or from New York to another state entirely, relocation changes the legal framework that applies to the employment relationship. For employees, it may affect tax withholding, paid leave, and labor protections. For employers, it may mean complying with multiple sets of employment laws.
For Employees:
- A move out of New York may mean losing protections under New York Labor Law or NYC Human Rights Law.
- You may be subject to different state tax rules and eligibility criteria for paid sick leave or disability benefits.
- Notify your employer in writing before relocating — not just for logistics, but to help clarify legal obligations.
For Employers:
- You may be required to register and pay taxes in another state if a remote employee works there permanently.
- You must comply with the employment laws of the state where the employee physically works, including minimum wage, overtime, and required leave.
- Failing to adapt policies for out-of-state employees could lead to compliance issues or penalties.
Key Legal Issues for Remote Work in New York
Even if the employee stays in New York, there are legal considerations specific to remote work arrangements. These include:
1. Wage and Hour Laws
- Remote employees must still be paid in compliance with New York’s minimum wage and overtime rules.
- Employers should establish clear expectations for work hours and time tracking, especially for non-exempt employees.
2. Expense Reimbursement
- New York law doesn’t explicitly require employers to cover home office expenses, but it may become an issue if the employee is required to use personal equipment or incur out-of-pocket costs.
- A written policy can help clarify what’s covered — and what’s not.
3. Workplace Safety
- Employers are still responsible for ensuring a safe work environment, even in a remote setting.
- This may include reviewing ergonomic setups or providing accommodations under disability laws.
Employee Classification and Remote Work
With flexible work arrangements come new risks around misclassification. For example:
- Independent contractors working remotely may meet the criteria of employees.
- Employers must evaluate whether remote freelancers are being treated like staff — same hours, same supervision — and whether that’s triggering legal obligations.
Misclassification can lead to issues with tax reporting, benefits, and wage compliance. If you’re unsure, it’s worth a legal review.
What Employers Should Do
To reduce risk and maintain compliance:
- Update employee handbooks and policies to reflect remote work expectations.
- Develop a written remote work agreement outlining duties, hours, reporting, and any relocation limitations.
- Track where employees are working and consult with legal or HR professionals when out-of-state moves occur.
- Stay informed about local employment laws wherever your remote employees reside.
What Employees Should Watch For
If you’re working remotely or planning to move:
- Understand how your rights or benefits might change based on your location
- Get clear communication from your employer about expectations and any new legal terms
- If you feel your pay, leave, or treatment has changed unfairly due to remote status, keep records and seek legal advice
Remote Doesn’t Mean Risk-Free
Remote work may offer flexibility, but it doesn’t eliminate legal responsibilities. If you’re facing a dispute related to relocation, misclassification, or remote work expectations, contact Lipsky Lowe for a consultation. We’ll help you understand your rights, wherever you work from.