Many businesses saw their workforces turn remote during the pandemic, with some permitting employees to work from anywhere. These remote "work from anywhere" arrangements may have been viewed as temporary at first, but with many employees expressing interest in permanent out-of-state remote work arrangements, your business must consider whether it is complying with state and federal law if it is endorsing such new, permanent arrangements. This article covers some basic compliance issues, but there are others: foreign entity registration, worker's compensation, wage and hour, and required disclosures, to name a few. Make sure you are paying attention to these important considerations.
Navigating the varying laws could be a nightmare for employers attracted to the potential cost savings resulting from work-from-anywhere arrangements. It is important to remember that the general rule is that the employment laws of the state where the employee resides and works typically govern the employment relationship, but not always.