On February 3rd David was honored to be a guest on the nationally syndicated The Small Business Advocate® radio show.
On February 3rd David was honored to be a guest on the nationally syndicated The Small Business Advocate® radio show. Jim Blasingame and David discussed “Risks Associated with Remote Workers & Independent Contractors” Use the players below to listen, and here are some highpoints.
Don’t Make the Mistake of Thinking Your Remote Workers Should be Independent Contractors
The IRS has a helpful page on Understanding Employee vs. Contractor Designation. To better determine how to properly classify a worker, consider these three categories – Behavioral Control, Financial Control and Relationship of the Parties.
What Changes When Dealing with Remote EMPLOYEES
Yes, telecommuting and remote work may pose advantages for both the company and its employees, but it has some risks that should be considered.
Small business owners often feel that they can’t now ask a long time employee to sign an employment contract out of the blue (which isn’t true and should be considered). Employers are often adverse to employee contracts, often relying on the fact that new employees have to sign-off that they received an HR policy handbook upon hiring (which often includes everything under the sun).
However, remote working provides small business owners an opportunity to get a shorter more concise document/policy signed by their employees. The key purpose is not necessarily to cover ones behind, but also to re-emphasize the trust required in such a relationship. It provides an opportunity for a small business owner to look an employee in the eyes, even if online, and say “my expectations are the same whether you are in the building or not, and this is only going to work if we both feel valued and not taken advantage of, so I need you to review and agree to our Remote Working Policy.”
Never pass up an opportunity to put expectations in writing and have employees affirm, or re-affirm, their commitments, as it rarely comes back to bite you.
Don’t Forget Your Obligations as the Business Owner
Speak with your counsel regarding potential issues with the Fair Labor Standards Act (FLSA), discrimination/disability, work environment obligations, and data security concerns.
Lastly, be aware that allowing remote employees to work in other states or countries can present complications for the business owner. Are you intending to allow your employees to work from the beach in Mexico, or only in their home 15 miles away? Be clear.