Should Bosses Pay for Remote Work Expenses? By cioreviewindia Team

Should Bosses Pay for Remote Work Expenses?

cioreviewindia Team | Monday, 26 April 2021, 04:03 IST

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Should Bosses Pay for Remote Work Expenses?Remote work is currently part of a long-term reality for most companies and organizations. According to multiple studies, more than 50% of those employed before the pandemic switched to working remotely during the first wave of the pandemic. That said, working from home is a win-win for employers and employees. While companies save on operational costs and other perks, workers also enjoy unmatched flexibility and productivity.

However, working from home can take a toll on employees in various ways. For instance, remote work significantly blurs the employee privacy boundaries. That aside, it comes at the expense of employee financial and psychological costs, as they will have to shoulder some expenses. That said, should employers compensate expenses incurred by remote workers?

The Hidden Costs of Remote Work

Remote work comes with a lot of unpredictable and hidden costs. In essence, most employees didn’t have remote offices before the pandemic, forcing them to cobble up once lockdown and work from home measures were enacted. Additionally, a survey established that more than half of remote workers were not allowed by their employers to take office equipment home. As such, they’ve had to purchase this equipment by themselves.

Unfortunately, there is no far-reaching federal law requiring employers to compensate their remote employees. However, some businesses have developed remote work policies outlining what can be reimbursed. Below are some insights that provide clues on what bosses should or shouldn’t pay for.

Federal and State Laws

According to federal laws, employers should reimburse their employees for any work-related expenses that may reduce the employee earnings to a level below the minimum wage. As mentioned, more workers have switched to remote work, even after the pandemic flattened. As such, employers should ensure that employees earning close to the minimum wage don’t incur these costs, such that their paycheck falls way below the minimum wage.

Some states have provisions requiring employers to compensate employees for all business-related expenses. The states include California, Massachusetts, New York, District of Columbia, Iowa, and Illinois. Employers should cover cellphone fees, internet services, office supplies, and other requirements according to these provisions.

As an employer, even if your state doesn’t have legal frameworks guiding reimbursement for remote employees, it is ideal to compensate your workers. Doing this voluntarily builds employee morale and productivity, as employees won’t be looking for ways of reducing these expenses.

Who Pays for the Remote Office?

If remote employees work from home, they will likely have to design an equipped home office. However, employees may also choose to work from a co-working space. In either case, there are associated expenses, which might be more or less depending on the nature of work. Some employers partially cover these expenses, offer pre-defined home office stipend, or don’t cover the expense at all.

Research studies indicate that 84% of remote workers prefer working from their homes, despite the notion that remote employees travel and work from cafes and restaurants. These findings concluded that this preference relates to the fact that employers cover some home office expenses.

According to OSHA provisions, employers aren’t required by the law to provide a workstation. However, they should ensure that their employees’ work station is free from hazards. That said, some companies may provide their employees with ergonomic chairs, tables, and other office tools that enhance their productivity.

However, some employers may only implement an ergonomic program that educates their employees about home office working ergonomics but won’t assist employees in covering the expenses. Generally, this depends on your employers’ remote work policies.

Who Covers Employee Travel Expenses?

Once in a while, remote workers might be required to travel to the company headquarters for various reasons. Compensation for traveling expenses entirely depends on the company policy, the industry, and company culture.

If you are required to report to the main office once every month or several times a year, your employer may reimburse the flight costs, accommodation, meals, and other forms of transport required. However, most employers have restrictions on the amount you can spend. For example, you may be restricted to $20 per meal.

Are There Work Benefits for Remote Workers?

Most remote employees have sick leave and paid time off, just like their physical office counterparts. However, they may take less sick leave than others for convenience reasons. As for paid time off, some remote workers enjoy unlimited paid time off, which includes flexible days that can be used for vacation. Some employers offer travel stipends that allow employees to travel since they can work remotely.

Bottom Line

Evidently, the perfect answer as to if the employer should compensate remote employees depends on several factors. Among the determinants include the industry, job position, work equipment required, company situation, employer’s remote work policy, and company location. If you don’t understand these provisions in your state, consult an employment lawyer for clarification.

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