Navigating California labor in the remote work era

The workplace revolution sparked by the pandemic has fundamentally transformed how we work. Remote and hybrid models have become more than just a trend — they’re now a standard part of modern business operations. But with this flexibility comes a critical challenge: ensuring your company remains compliant with California’s complex labor laws.

While the workspace has changed, compliance with California labor laws hasn’t. When adapting to new working conditions, it’s vital to protect yourself from legal risks.

Here are some of the most important  legal considerations for remote and hybrid environments, along with some tips about how to comply:

1. Wage compliance: more than just paying the right amount

The Fair Labor Standards Act (FLSA) sets federal standards for wages, overtime, recordkeeping, and employment classification. States also impose legal standards and in many cases, such as with California, the state laws are more stringent than the federal standards. While these state and federal standards remain unchanged for remote workers, Employers must comply with both.  Two of the biggest challenges for remote workers are accurate timekeeping to support payroll requirements, track overtime and breaks.

• Timekeeping: Remote employees may work irregular hours or forget to clock in and out. Employers must ensure reliable systems to track work hours, meal breaks, and overtime accurately. How? Payroll platforms with integrated timekeeping tools can help streamline this process.
• Overtime compliance: Employers remain responsible for paying employees for all hours worked, including overtime. Failing to track time correctly could lead to claims for unpaid wages.
• Meal and rest breaks: California law requires strict meal and rest breaks for non-exempt employees. It’s important to ensure remote employees are aware of their rights and that you have policies in place to ensure compliance.

Pro Tip: Invest in a robust payroll platform with timekeeping features to ensure compliance and protect your business.

2. Workplace safety goes virtual

While the Occupational Safety and Health Administration (OSHA) standards traditionally apply to physical office spaces, remote work introduces new challenges. Though OSHA does not have specific home office requirements, employers are still responsible for ensuring that employees have a safe and functional workspace.

What you need to know:

• Reasonable safety measures: Employers don’t need to inspect home offices but should provide guidelines for maintaining a safe workspace. This might include training sessions, ergonomic tips, or regular check-ins.
• Reimburse business expenses: Under California Labor Code Section 2802, employers must reimburse employees for all necessary expenses, including:

1. High-speed internet
2. Phone bills
3. Office supplies (e.g., desks, chairs, printers)
4. Essential technology

Common pitfall: Many companies overlook internet reimbursement. Providing equipment without covering essential expenses like internet access can violate California law.

• Cybersecurity: Data security is a growing concern. Employers should implement robust cybersecurity measures, such as:

1. Secure communication channels
2. Training on data protection protocols
3. Clear policies for company and personal device use

Reminder: Ignoring these requirements opens the door to costly legal claims. Proactive support ensures compliance and keeps employees productive.

3. Privacy and monitoring concerns

Managing productivity in remote environments is tricky. Many employers turn to monitoring tools, such as keystroke loggers, video surveillance, or tracking software. However, this can raise serious privacy concerns under the California Consumer Privacy Act.

Key points to consider:

• Provide notice and obtain consent before monitoring employees’ devices or activities.
• Excessive monitoring can violate employees’ right to privacy, especially if it extends to personal devices and depending on how the monitoring is done and the data collected.
• Transparent policies that explain how and why monitoring  and data collection occur may mitigate legal risks and build trust.

Pro tip: Balance accountability with privacy by implementing clear, consent-driven monitoring policies.

4. Maintaining a respectful virtual culture

Virtual or not, your company culture matters. A proactive approach to inclusivity reduces risk and enhances employee morale. Working virtually can change dynamics and create new biases. While employees may not share physical spaces, the risk of toxic behaviors persists — but may be harder to detect.

Virtual Workplace Challenges:

• Harassment issues: Virtual work can foster inappropriate behavior, including:
  • Hostile language in messages
  • ALL CAPS aggression
  • Ignoring or excluding colleagues
• Reporting and monitoring toxic behaviors: In a virtual setting, reporting and monitoring behaviors may differ.
  • Passive aggression and other problematic workplace behaviror may be more difficult for supervisors to observe.
  • Without a shared space, there may be a lack of witnesses, making employee reports difficult to evaluate.
  • Communication through collaboration tools such as  chats and messaging systems is often overly informal and blunt, and what’s rude to one might not be the same to another.

Such behaviors contribute to toxic work cultures and can escalate into legal issues if left unaddressed. Employers should:

• Update anti-harassment policies to reflect virtual settings.
• Train employees to recognize and prevent inappropriate behavior online.
• Foster respectful communication across all platforms.
  
  

5. Other Considerations

Remote work introduces a lot of new concepts about the workplace.  In addition to the points raised above, employers should consider:

• Workers’ Compensation: Employers should ensure that remote workers are covered under their workers’ compensation insurance and understand how to report work-related injuries that occur at home.
• Reasonable Accommodations: Employers may need to provide reasonable accommodations for remote employees with disabilities under the Americans with Disabilities Act (ADA) and California’s Fair Employment and Housing Act (FEHA). Indeed, allowing an employee to work from home might, under the right circumstances, be a reasonable accommodation.
• Tax Implications: The potential tax implications for remote workers, such as state income tax considerations if employees work from different states.

The bottom line

Transitioning to remote work isn’t just about technology — it’s about creating a safe, and respectful environment that is legally compliant and protects both your employees and your business. By staying informed and proactive, you can turn potential legal challenges into opportunities for building a more flexible, productive, and engaged workforce.

Pro Tip: When in doubt, consult with a California employment law specialist. Preventative advice is always cheaper than resolving workplace complaints.

Key Takeaways:

• Wage and hour laws, including overtime and breaks, still apply in remote settings.
• Employers must reimburse employees for all necessary work-related expenses.
• Workplace safety, cybersecurity, and privacy policies must be adapted to the virtual environment.
• A respectful and inclusive company culture is critical for long-term success.

Your company can thrive in this evolving workplace landscape by prioritizing compliance and fostering a positive culture.