How Remote Work Has Changed Wage and Hour Violations

by | Nov 27, 2024 | Wage & Hour

The rise of remote work has transformed the modern workplace, offering flexibility and convenience for both employees and employers. However, this shift has also introduced new challenges, particularly in the realm of wage and hour compliance. For California employees, understanding how remote work impacts wage and hour violations is crucial to protecting your rights.

Tracking Hours in a Remote Work Environment

One of the biggest challenges in remote work is accurately tracking hours worked. California law requires non-exempt employees to be paid for all hours worked, including overtime. Remote employees may face wage theft when employers fail to:

  • Track work hours accurately, including after-hours emails and calls.
  • Compensate for overtime that occurs due to extended remote work hours.
  • Account for time spent on required tasks like logging into systems or attending virtual meetings outside regular hours.

Employers must implement reliable systems to track remote workers’ time and ensure compliance with wage and hour laws.

Meal and Rest Break Violations

California’s strict meal and rest break laws still apply to remote workers. However, enforcing these breaks can be more difficult without in-office supervision. Remote employees may miss breaks due to the demands of their workload, or employers may fail to remind workers of their rights. Employers are responsible for ensuring that employees are taking their legally mandated breaks, even in a remote setting.

Misclassification of Remote Workers

With remote work becoming more common, some employers may misclassify employees as independent contractors to avoid paying minimum wage, overtime, or providing benefits. California’s AB 5 law, which uses the “ABC test” to determine worker classification, applies regardless of where the work is performed. Misclassified workers often miss out on crucial wage protections and should verify their classification status.

Expense Reimbursements

Under California Labor Code §2802, employers are legally required to reimburse employees for all necessary and reasonable business expenses incurred while performing their job duties. This law applies to all employees, including those working remotely. The term “necessary” refers to expenses that are required for employees to perform their work effectively. Employers are obligated to reimburse these costs, even if the employee works from home voluntarily.

Examples of Necessary Work Expenses:

  • Internet and Phone Bills: Employees who use their personal internet connection or phone for work purposes are entitled to reimbursement for the portion of these bills attributable to their job duties.
  • Office Supplies: Items such as pens, paper, printers, or other tools necessary to fulfill work responsibilities must be reimbursed.
  • Equipment: Employers must cover the costs of computers, monitors, headsets, or ergonomic chairs if these are necessary for the employee’s work and not provided by the employer.
  • Utilities: If remote work significantly increases utility usage (e.g., electricity), employees may be eligible for partial reimbursement, provided they can demonstrate the additional costs are work-related.

Employer Responsibilities

Employers are responsible for determining what constitutes a “necessary” expense. They must communicate their reimbursement policies clearly and ensure employees understand the process for submitting expenses. Failing to reimburse necessary expenses can result in wage and hour violations, exposing employers to legal claims.

Common Challenges in Reimbursement Claims

Remote workers often face challenges in getting reimbursed for necessary expenses because:

  • Employers may dispute whether an expense was truly “necessary.”
  • Employees may not track their additional costs effectively.
  • Employers may fail to establish clear reimbursement policies for remote workers.

For example, if an employer requires employees to attend video meetings but does not provide adequate internet access, the employer may be liable for reimbursing a portion of the employee’s internet bill.

How to Protect Your Rights

Remote employees should keep detailed records of work-related expenses, including receipts, invoices, and any communication with their employer regarding reimbursement. These records can help support claims if an employer disputes the necessity or reasonableness of a reimbursement request.

Employers must evaluate reimbursement requests in good faith, considering whether the expense was directly related to the employee’s work and necessary for job performance.

Know Your Rights

If your employer has failed to reimburse necessary work expenses or if you’re unsure whether your expenses qualify under California law, you have the right to seek compensation. The experienced employment lawyers at Rothschild & Alwill, APC can advise you on how to handle potential wage and hour violations, including reimbursement claims. Email us or call our Central Valley office in Bakersfield at (661-369-8510) or in Santa Barbara at (805-845-1190) to schedule an initial confidential consultation at no charge. Se habla Español.