With an increase in remote work driven by the COVID-19 pandemic, more businesses are having to contend with the various rules and regulations surrounding remote employment. Even with the pandemic abating and more people returning to work in-office, many still are electing to work from home. Others have adopted a hybrid model in which they work remotely some days and from the office on others.
The Status of Remote Work
It’s clear that remote work isn’t headed anywhere anytime soon, which is why businesses should prepare to support employees that are working from home. This might mean providing equipment, establishing better communication channels, or anything in between. Following remote work best practices can keep everybody on the same page, no matter where they’re working from, and promote greater efficiency throughout the organization.
Workers’ Compensation for Remote Workers
While remote work offers many benefits to employees and employers alike, there are certain things to take into consideration when hiring a remote employee on your team. One of the biggest concerns faced by companies adopting remote or hybrid work models is workers’ compensation. Workers’ comp was first introduced to provide wage replacement and/or medical care to employees injured at work. Remote employees face fewer risks than on-site workers, but they’re still generally covered under insurance and entitled to compensation in the event of job-related illness or injury.
State-by-State Regulations
However, workers’ compensation can be complicated by remote work because each state has its own regulations surrounding insurance. For instance, organizations in Alabama must have at least five employees before they’re mandated to have workers’ comp insurance. Other states require it for just one employee. This means that every time a business hires a new employee in a different state, they need to consult with their insurance provider regarding that state’s regulations regarding how many employees are needed for workers’ compensation.
If you do not have an office in that state and the employee is working from home, your carrier may ask you to provide their home address. It’s recommended that you push back at first, but if the carrier insists, just be aware that that is normal business practice for work-from-home workers’ compensation insurance.
Learn the Local Rules
For organizations that employ remote workers, understanding each state’s workers’ comp regulations is crucial to ensuring continued business success. By staying on top of each employee’s insurance plan, you can get them the care they need when and if appropriate and remain compliant with local and state laws.
