By Stefanie Renaud, Esq., of Skoler, Abbott & Presser, P.C.
Telecommuting is one of the fastest growing employment trends in the United States, up 103% since 2005. Today, over 3.7 million employees telecommute at least half the time. Undoubtedly, that number will continue to grow, because 85% of Millennials, who compose the largest generation in the workforce, would prefer to telecommute full time.
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Although research shows that telecommuting improves morale, increases productivity, and improves employee quality of life, there are many legal issues for employers that may complicate this popular work arrangement.
For example, the federal Fair Labor Standards Act (FLSA) and parallel state laws require employers to pay their employees properly. These statutes categorize employees in two ways: exempt and nonexempt. For nonexempt employees, the vast majority of the workforce, the employers must keep detailed records of hours worked and wages paid, pay the overtime rate of time and half for all hours worked over 40 per week, and pay employees minimum wage. But how does an employer keep records for an employee it never sees?