Offices are getting smaller as technology allows more people to telecommute, and employers recognize the cost savings. Others see this flexibility as necessary to attract and retain talented employees who insist on this non-traditional arrangement.
In the past, apart from outside sales, people rarely worked from home. That has completely changed. About a quarter of the U.S. workforce now teleworks with some frequency, and 80 to 90 percent would like to telework at least part time. That may be a bit too drastic for most employers, as studies show two to three days a week seems to be the sweet spot to balance remote working and collaboration, but it does mean employers need to take telecommuting options seriously.
Who Telecommutes?
A typical telecommuter is now 49 years old, college educated, a salaried non-union employee in a management or professional role, earns at least $58,000 annually and works for a company with more than 100 employees. But that too is changing as Millennials seek to work remotely so they can live where they wish regardless of a physical office location. Also, work from home has been increasingly recognized as a potential reasonable accommodation for disabled workers. In 2015 up to 316,000 disabled employees regularly worked remotely.
The ROI of Teleworking
Studies maintain that if those with compatible jobs and a desire to work from home did so just half the time, the national savings would total more than $700 billion annually including:
• A typical business would save $11,000 per person per year on such expenses as office space, furniture, utilities and other overhead costs.
• The telecommuters would save between $2,000 and $7,000 annually on such expenses as gas, tolls and vehicle depreciation.
• Oil savings would equate to more than 37 percent of our foreign oil imports;
• The greenhouse gas reduction would be the equivalent of taking the entire state of New York’s workforce permanently off the road; and
• The Congressional Budget Office’s estimate of the entire five-year cost of implementing telework throughout government ($30 million) is less than a third of the cost of lost productivity from a single day shutdown of federal offices in Washington DC due to snow ($100 million).
Legal Issues
Not to be the skunk at the picnic, but there are also legal issues and potential pitfalls to consider with these arrangements. They include:
Coverage under federal and state employment laws: Even though remote workers aren't in the office, they are still considered employees and can be eligible for certain protections under state and federal workplace laws. This can present a problem as the employee isn’t under the watchful eye of the employer, but the employer is still liable for any employee misdeeds. This can be more of an issue if the employer is subjected to claims in a state where the employee lives but where the employer might not otherwise do business. Thus, the laws of other states could apply.
Hours worked: Employers need to track work hours for most employees. This can be a problem for remote employees. Many work off schedule or extended hours, and they may not follow company time reporting guidelines. For hourly and salaried non-exempt employees, this can result in overtime liability for their employers.
Distracted drivers: An employer could be liable for property damages and injuries arising out of a remote employee’s negligence during work hours. While this could also be true for traditional employees traveling on company business, remote or telework employees can spend more time on the road, thereby increasing the risk of claims.
Other misconduct concerns: This can result from a lack of integration or supervision. One-third of all sex harassment claims originate electronically, and there are other concerns about employee misconduct on the road or working remotely. Other potential claims include cyberbullying, invasion of privacy, theft, defamation and misuse of company equipment.
Workplace safety: A few years ago, the Occupational Health and Safety Administration proposed home office safety visits. That didn’t materialize, but OSHA reserved the right to conduct inspections as they saw fit. That is because a home office could be a place where workplace injuries occur, and employers can’t investigate or easily remedy those situations.
Privacy: As more employers try to monitor off-duty or out-of-office conduct with computer and phone use searches, employees might push back with invasion of privacy claims.
Theft: Remote access to an employer’s systems can make it easier for employees and others to misappropriate intellectual property and confidential information.
Best Practices
Ensuring that working from home is successful for both employers and employees takes planning and constant attention. Tips from experts include the following:
• Provide suitable training and technology, including collaboration methods;
• Make sure you have strong and flexible managers;
• Set expectations on workers’ schedules and availability;
• Select workers who are disciplined self-starters;
• Create appropriate performance metrics;
• Establish regular times for discussion and brainstorming;
• Communicate regularly to keep teleworkers in the loop;
• Schedule regular visits to the worksite; and
• Find other opportunities for informal interactions, such as wishing someone a happy birthday.
In the end, there is no denying the workplace is ever evolving, and employers who want to survive and thrive have to make the best use of their resources and employees. Telelecommuting and remote work will likely always be used at least in part.
Employers just need to find the right jobs, the right employees and the right circumstances to make this arrangement work for all concerned, but especially the business.
James P. Reidy is an employment lawyer and chair of the Labor and Employment practice group at Sheehan Phinney in Manchester. Reidy can be reached at jreidy@sheehan.com or 603-627-8217.
Current Issue - April 2024