JULY 05, 2025

 

Remote Work Policies and Employer Liability in 2025

A Legal Guide to Preventing ADA, Wage & Hour, and Classification Risks in the Modern Workplace

Out of Sight out of Mind? — Employer Legal Obligations to Remote Staff Exist Regardless of In-person Visibility

In 2025, your office isn’t just a building—it’s wherever your employees log in. Although you may not see remote staff physically in office, your legal obligations as an employer extend to these employees.

As hybrid and fully remote teams become the norm, employers must ensure their policies evolve to avoid exposing themselves to serious legal risk. This blog walks through the top red flags, overlooked obligations, and practical strategies to reduce liability—before a complaint or audit forces your hand.

The Four Risk Zones

• ADA Compliance

Failing to offer or document virtual accommodations can violate the Americans with Disabilities Act. Employers must provide reasonable accommodations such as flexible hours or screen-reading software for remote workers. We have seen employers reject telework adjustments or remote accommodations without ever documenting the request or engaging in an interactive process. Maintaining a clear process for reviewing and addressing accommodation requests allows employers to avoid these ADA compliance issues.

• Wage & Hour Violations

The “always-on” employment culture has turned into a compliance nightmare. Informal employer requests like “just check in throughout the day” can lead to litigation over employee unpaid overtime claims. It’s important to combat potential claims of overtime pay by requiring employees to seek written approval prior to engaging in any off-the-clock work. This will define compensable time for employees and set employer expectations for employees’ activity during that time.

• Worker Classification

Contractors working remotely are often treated like employees without realizing it. If you’re setting schedules, requiring daily check-ins, or issuing equipment, you may be misclassifying.

• Multi-State Compliance

When your remote team spans state lines, so do your legal obligations. Each state has its own unemployment system, tax laws, labor regulations, minimum wage and overtime requirements for example:

• An employee working from New York is entitled to $12.50 per hour ($15.00 in New York City), while the federal minimum remains $7.25.
• Connecticut requires thirty-minute meal breaks for employees working over seven and a half hours, while New Jersey only mandates breaks for minors.

Identifying Common Employer Pitfalls

Even employers who think their policies are current often overlook these critical areas:

• No definition of “working hours”
• Vague availability requirements
• No expense policy for home internet or office tools
• No virtual documentation process for discipline or performance
• No ADA guidance tailored for virtual settings
• No state-specific references

What Better Liability Limiting Compliance Policies Look Like:

Transform your liability exposure with precise language. Here are practical examples:

• Availability Requirements:

Before: “Employees should be generally available during business hours”

After: “Employees are expected to respond to internal messages within two business hours during their scheduled 9:00 am – 5:00 pm EST workday”

• Overtime Authorization:

Before: “Overtime must be approved in advance”

After: “All overtime work requires written pre-approval from your direct supervisor via email or company messaging system. Employees may not work more than 40 hours per week without explicit authorization. Unauthorized overtime will result in disciplinary action.”

• Work Hours Definition:

Before: “Standard business hours apply”

After: “Core work hours are 9:00 AM to 5:00 PM in the employee’s designated time zone. Employees must be available for meetings and collaboration during these hours. Work performed outside core hours requires supervisor approval and may qualify for overtime compensation.”

• Communication Expectations:

Before: “Stay connected throughout the day”

After: “Employees must check email and company messaging systems at the start of their workday, midday, and end of workday. Response to non-urgent communications is expected within 4 business hours. Emergency communications require a response within 1 hour during work hours.”

• Break and Meal Periods:

Before: “Take breaks as needed”

After: “Non-exempt employees working more than 6 hours must take an unpaid 30-minute meal break between the 3rd and 5th hour of work. Employees working more than 4 hours are entitled to a paid 15-minute rest break. All breaks must be recorded in the timekeeping system.”

Documentation: The Invisible Risk

Remote setups require intentional documentation practices beyond email threads. Essential documentation includes virtual performance evaluation templates, accommodation request forms and logs, remote discipline protocols with digital delivery confirmation, and equipment. agreements covering use, care, and return.

Labor Law Posting Requirements

Remote employees need access to required labor law posters in a readily available manner, meaning employees can access notices at any time without requesting permission. Federal requirements include Fair Labor Standards Act, Family and Medical Leave Act, and Equal Employment Opportunity posters.

Employers may satisfy continuous-posting requirements through electronic means if all employees exclusively work remotely and customarily receive information electronically. Best practices include uploading posters to accessible company intranets and obtaining electronic confirmation of receipt.

Expense Reimbursement Obligations

Federal law requires reimbursing nonexempt employees for business expenses that would result in pay below minimum wage. However, some states impose broader requirements. The state of California for example requires reimbursement of “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of the employee’s duties,” including reasonable percentages of monthly cellular and internet costs.

Remote Work Is a Legal Relationship

“The more informal your remote work policy sounds, the more formal your liability becomes.” When policies are silent or vague, agencies and courts interpret ambiguity against the employer. Remote work isn’t casual anymore—it’s an employment relationship that demands clarity and compliance across multiple jurisdictions.

Protect People and Prevent Problems

When you build a compliant remote work framework, you’re doing more than minimizing risk—you’re protecting your employees. Clear expectations reduce burnout, prevent wage theft, and support workers with disabilities. Proper policies also help retain talent while ensuring legal compliance across all jurisdictions where employees work.

How We Can Help

If your remote policy hasn’t been updated in the past year—or if you’re relying on a 2020 template—it may be time for a check-up. I offer brief, focused policy reviews to identify legal blind spots before they become legal problems.

The Law Office of Bhavleen Sabharwal provides comprehensive legal guidance to employers navigating the remote work environment for their employees. We help employers recognize employee coercion tactics, assess leverage points for negotiation, and protect the future of their business.

Contact us for a confidential consultation to review and audit your remote work policies.

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Document Sources:

1. Remote Work Compliance Risks and Trends for 2025, https://natlawreview.com/article/companies-gauge-impact-return-office#google_vignette.
2. Employment Checklist – Remote Employees Best Practices (Annotated), https://www.bloomberglaw.com/external/document/XC99QGDG000000/employment-checklist-remote-employees-best-practices-annotated.
3. How Employee Accommodations are Changing in 2025 – AbsenceSoft, https://absencesoft.com/resources/how-employee-accommodations-are-changing-in-2025/.
4. Working-from-home-unraveling-the-employment-law-implications-of-the-remote-office, https://www.americanbar.org/content/dam/aba/publications/aba_journal_of_labor_employment_law/v36/no-2/working-from-home-unraveling-the-employment-law-implications-of-the-remote-office.pdf.
5. Midyear payroll 2025: Legislative, judicial, and compliance updates, https://tax.thomsonreuters.com/blog/midyear-payroll-in-2025-legislative-shifts-judicial-rulings-and-compliance-crossroads/.
6. Labor Law Compliance for Remote Employees Explained | Labor Law Education Center: Learn About Labor, https://www.laborlawcenter.com/education-center/labor-law-compliance-for-remote-employees/?srsltid=AfmBOor0NvPKhCKDvLdSYCRonmyxI-wDKzioOmAmh7XXaZDNMO1eEcwl.