Wednesday, March 6, 2013

Working from home? Maybe not for much longer.

It has been interesting to me watching all of the news reports recently regarding large, tech employers like Google and Best Buy, who are changing their policies relative to employees working from home.  The slant of the stories has been, not surprisingly, how inconvenienced the employees will be, implying some evil capitalist motive to their employers.

Here's the reality.  Both of these companies started their work-at-home programs with established criteria to judge the programs' efficacy.  We've not heard a single word about whether employees met those objectives.

But even more significantly, no one is talking about the cost and risk to employers who have employees working unmonitored at home.  Across the country, the presumption for tax purposes is that employees are non-exempt employees; in other words, that employees are what most of us commonly refer to as "hourly" employees, subject to wage and hour laws, minimum wage requirements, and statutorily required breaks and meal periods, among other things.

In California, for example, if an employee during a working day doesn't take his/her two 15-minute breaks and lunch break, then he/she can then turn around and file a claim with the Department of Labor for all of that time as overtime, which also then carries substantial penalties to the employer.  The onus is on the employer to ensure these employees take these breaks.  I have sat in DOL meetings and hearings with employers where the best we can try to do is mitigate these burdensome penalties, because unfortunately, despite repeated documentation in the personnel file and manual that the employee was advised to take his/her breaks, unless the employer takes active steps to force the breaks and keeps impeccable documentation, the employee's time records of time allegedly actually worked (which not surprisingly often do not match their time cards) trump all other evidence.

How does an employer document breaks effectively when the employee is at home?  The obvious answer is they cannot.
 
Also, California is one of only four states in the US that require employees to be paid overtime for working more than 8 hours in a single day, regardless of how many hours are worked in a work-week.  How does an employer effectively monitor that time if the employee is at home, and ensure the employer is not unwittingly carrying an untapped liability risk?  The answer to this question involves substantial staff time just to monitor staff's compliance with wage and hour laws, like collecting reports of computer usage, hours spent online and logged into the company's database, etc.  All of these issues create an HR nightmare for the employer. 

The solution?  Bring everybody back into the office, where the employer can service the edicts of the nanny-state and ensure employees are taking their statutorily required breaks, lunch periods, and not working over eight hours in one day. 

If employees want more freedom in the workplace, then employees need to talk to their state legislators about the overly-regulated morass that has been created, and return personal responsibility to the workplace.  This would allow working families flexibility in their daily schedules, for example, the possibility of working four-10's; all options that are now essentially off the table, but would support stronger families and greater creativity and flexibility in the workplace and support a more vibrant economy.
 
If you are in favor of greater flexibility in the workplace, then while you're on one of those statutorily required breaks, drop an email or letter to your Assembly or Senate representative.  The people of this great State have the power to get things done.  Harness it.


Nothing in this blog is intended to create an attorney-client relationship.  This article is intended to provide a general overview of the current status of the law for informational purposes only, and is not intended to constitute, or serve as a substitute for, a professional legal consultation.  Laws change every day; please consult an attorney regarding the current status of the law, and how the law affects your specific circumstances. Thank you.