Remote work has unlocked new talent pools for employers, and it has also created new legal risks. Many employees fail to tell HR when they work from another state, which can lead to serious tax, wage, and compliance issues for employers. State laws apply where the employee works, not where the company is based.

You are responsible for compliance for every state in which you have employees:

• Considering wage laws like reporting time pay and contractor pay liability.
• New protections for pregnancy, menopause, and striking workers.
• Hiring rules around pay transparency and background checks.

What you can do:

• Confirm where remote employees are working (do not assume they will tell you).
• Review and tailor policies by location.
• Stay current on evolving state laws to avoid fines and legal exposure.

Remote work is not going anywhere, and neither are the local laws that govern it. Staying ahead means understanding not just how your people work, but where.

Need help navigating multi-state hiring? We’re here to guide you.