Steps to Consider When Employee Telecommutes from Another State

As a result of COVID-19, we’ve had a lot of employees working remotely, but now some of them are planning to move out of state and wish to continue to work for us on a remote basis. Is there anything special we have to do for our employees working in other states?

Once your employees begin working in another state, they will, in most circumstances, be subject to the laws of the state in which they are performing services for the employer.

You will need to work with your workers’ compensation carrier, or an insurance broker to secure coverage in each state in which your employees are working.

In addition, you will have to familiarize yourself with the laws and regulations of those states as they relate to the employee-employer relationship. In most situations, the laws of California do not stretch beyond the physical boundaries of the state.

One situation in which California’s requirements extend beyond its boundaries is the requirement for supervisors who oversee employees within California to receive sexual harassment prevention training, even if they work outside of the state.

Consult Experts

It is highly advisable to consult the services of an expert in employment law in each of the states in which you have employees performing services for your company.

Conferring with a tax specialist about the requirements in each of the states where you have employees also is a good idea.


Column based on questions asked by callers on the Labor Law Helpline, a service to California Chamber of Commerce preferred and executive members. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.

Staff Contact: David Leporiere