Working from home or offering a flexible work plan can be an attractive arrangement for both employee and employer. Oftentimes during interviews, when a candidate is asked what they need or want in a new employer, candidates will reply with “a good work-life balance.” Allowing an employee to do work from home or to work a flexible schedule can offer that.
Examples of flexible work arrangements can include: working from home or having varying hours for when work is done (working four 10-hour days, for example, as opposed to five 8-hour days); different start and end times; job sharing; or compressed work-week schedules. Please keep in mind that all federal and state laws still apply in these flexible work situations.
Things to consider when creating a flexible work environment:
Timekeeping
- A flexible work arrangement or work-from-home scenario can make timekeeping much more difficult. Wage and hour laws still apply and non-exempt employees still must be paid overtime for working more than 40 hours per week.
- Some timekeeping systems allow mobile or computer-based punch systems. If you are considering a flexible work arrangement, BCN Services has a timekeeping system that offers this capability.
Workers’ compensation:
- A worker’s injury at home may be compensable.
- Travel that occurs during the commuter’s work day may be compensable
- Travel to-and-from work and home usually is not compensable but may be in a flexible work arrangement.
- Employer’s must comply with a hazard-free work zone
Privacy/Security
- Will you want to provide company owned equipment or allow employees to use their home computer? You may want to provide equipment to ensure privacy and security of company information.
Liability Insurance:
- Make sure liability insurance covers the employee’s home.
- Make sure the employee has homeowner’s insurance.
- Be sure to obtain any home office permit or license required by local zoning laws.
Payroll taxes:
- Taxes are based on an employee’s home address and work address and are different from state-to-state. If the company office is in one state and employee lives and works from home in another state, there could be different tax implications.
- There could also be different city taxes depending on where the employee lives and works.
Working from home may prove to be a great option for some employers as a way to boost morale and commitment to the job, reduce tardiness, help with employee retention and reduce turnover of staff.
BCN Services recommends creating a specific, detailed policy on the expectations for flexible work arrangements that includes a place for the employee to sign and acknowledge the arrangement. Please talk to your HR expert at BCN Services to help create a policy and discuss compliance concerns.
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