Is Telecommuting Right For Your Workplace? Read This

Best Buy and Yahoo recently made news with major overhauls of their telecommuting policies (i.e., reducing or eliminating them).   In telecommuting argument, two objectives seem to dominate: work/life balance on the employee side and productivity on the employer side.   In some instances, telecommuters are more productive than their in-office counterparts.  Sometimes the opposite is the case.  Much of this will depend on the industry, the management culture of the workforce and the employees themselves.  How can you decide if telecommuting will work for your business and for your workforce?  Here are a few things to consider:

Technology and Equipment.  If you’re providing the electronic equipment to your employees, have them sign documents acknowledging receipt of the equipment, requesting that they take appropriate action to prevent damage or theft of the equipment, and indicating who will maintain and replace damaged equipment.  It’s important to have written document of this arrangement.

Security.  Is your telecommuting employee taking home or accessing sensitive documents or electronic data? If so, you should consider taking steps to make sure that their work physical and virtual workspaces are secure.   If the documents are confidential or very sensitive, employers should have a secure Internet connection.

Wage and Hour/Compensation.  The Fair Labor Standards Act (FLSA) requires employers to pay employees for all hours worked and to keep accurate information regarding hours worked. The FLSA explicitly applies this rule “to work performed away from the premises or the job site, or even at home” and requires employers to count the time as hours worked “[i]f the employer knows or has reason to believe that the work is being performed.” (29 C.F.R §785.12)  Employers with non-exempt employee/telecommuters must track those hours and to ensure their accuracy in the absence of a supervisor to monitor the employee’s working hours.

The FLSA requires employers to compensate non-exempt employees for all hours worked and to pay employees overtime for all hours worked over 40 in a given workweek. The federal rules on overtime, waiting time, on-call time, and rest and meal breaks apply to telecommuters as much as they do to employees in the workplace.  Employers with non-exempt telecommuting employees must track employees’ working hours in order to minimize the risk of penalties, charges and lawsuits.

Safety.  Employers are responsible for maintaining a safe working environment for their employees while they are working - whether at home or in the office.   Since employers are responsible for the work, they should consider requiring employees to designate a specific area at home as an office. Employers might also want to perform a site check of the employee’s home, if possible office to ensure both that there are no potential hazards that could expose the employee to harm and the employer to liability.

Bottom Line:
If you’re thinking about establishing a telecommuting policy, consider a written agreement or written terms of employment that outline the telecommuting arrangement.  The agreement should address the issues discussed above.

Also keep in mind that telecommuting might work for your company, but might not be right for every employee.  You should consider outlining job responsibilities and performance criteria before allowing employees to telecommute.

If you have any questions about telecommuting policies, contact me or visit my website.