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The Hazards of Remote Employee Layoffs: Wage and Hour Issues, Severance Agreements, and Unemployment Claims

June 30, 2022


Remote work has exploded since the COVID-19 pandemic began with some employers hiring employees to work remotely anywhere in the United States.

With the recent economic downturn, layoffs are beginning to occur, and for the first time a significant number of remote employees may be included in layoffs. Layoffs of remote employees present unique legal hazards for employers.

Final Paycheck and Access to Personnel Files

Generally, remote employees are subject to the wage and hour laws of the states and localities in which they are physically present and working. An employer’s payroll practices for final paychecks in its home state may not be sufficient to meet the requirements of the out-of-state remote employee’s locale.

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