Remote work does not always involve employees working from another country or state. You may live in Ohio or Texas while working remotely for a company based in Los Angeles, San Diego or another California city.
In these situations, determining which state’s employment laws apply can depend on factors such as where the work is performed, where the employer is located and the terms of the employment agreement.
Does an employer’s location matter when an employee works in another state?
When an employee works remotely from a different state, the employer’s location does not automatically determine which employment laws apply. Instead, the laws of the state where the employee physically performs their work can govern the employment relationship.
In many cases, the employee’s home state laws will apply to issues such as:
- Minimum wage and overtime
- Meal and rest breaks
- Pay periods and wage statements
- Paid sick leave
- Reimbursement of necessary work expenses
However, California law may still be relevant in certain situations, particularly if the employer is headquartered in California or if aspects of the employment relationship are tied to the state. For example, company policies, payroll practices or contractual terms may reference California law.
Can an employment contract mandate another jurisdiction?
A remote-work agreement may include a choice-of-law or dispute-resolution provision specifying that state law governs the employment relationship. However, these provisions do not always override the mandatory employment protections of the state where the employee works.
Courts may decline to enforce a contract provision that attempts to bypass the employee’s home state labor laws, especially when those laws are designed to protect workers. As a result, employees working outside California may still be entitled to the protections of their own state’s wage and hour, leave and workplace safety laws.
Additionally, a worker’s classification is important. Employees generally receive broader legal protections than independent contractors, regardless of where the employer is located.
If you have questions about your rights or need help resolving a workplace issue, reach out to us for a free initial consultation to discuss your situation and protect your interests. Given all that is at stake in many remote work scenarios, navigating the complexities of this reality is rarely adviseable as a DIY effort.