Want to avoid losing money when you start working remotely?
Every year, Americans lose BILLIONS of dollars they worked hard to earn. As more companies go remote (yes, even yours), employment law violations are becoming much easier to commit.
Problem is…
Remote work wage theft is becoming increasingly common. Without a centralized office to monitor employee hours and breaks; it’s easier than ever for employers to bend (or break) the rules around overtime and expense reimbursements. In 2024, the Department of Labor recovered $273 million in stolen wages from unscrupulous employers.
And that’s only the wages they were able to recover…
Truth is… Remote employees have the same rights as in-office workers. But most people don’t even know where to start when it comes to identifying violations.
Below you’ll find employment law red flags remote workers should be aware of. So you can earn every penny you deserve.
Here’s what you’ll learn:
- Why Remote Wage Theft Is Increasing In Frequency
- Employment Law Red Flags Remote Workers Should Know
- Steps You Can Take To Protect Yourself
Why Remote Wage Theft Is Increasing In Frequency
Remote jobs have become more popular than ever before. As of the first quarter of 2024, approximately 22.9% of US employees worked remotely.
These employees no longer spend their workday sitting at a corporate desk. Instead, they work from:
- Coffee shops
- Restaurants
- Friend’s sofas
- Airport terminals
- Home offices
While this offers flexibility, it also opens doors for employers to violate employee rights.
Most employment laws were designed with office jobs in mind. What happens when your workplace is a kitchen table?
Employers don’t understand (or care) about remote work laws. Remote work wage theft can happen in numerous “grey area” situations that most people don’t think twice about. Checking emails before your scheduled start time. Answering a call after you finish working for the day. Taking lunch breaks without pausing your timecard. When you work from home, it’s important to understand remote work rights in California because wrongdoings like these are extremely common.
The Economic Policy Institute reported that wage theft can cost workers up to $50 billion per year. That’s right… More money than ALL robberies, burglaries and larceny.
Remote employees are particularly at risk because there’s often no oversight on their activities. When someone works in an office, there’s a time clock to clock in and out. A manager nearby to supervise. There’s an “office mentality” that differentiates work time vs personal time.
Remote workforces lack any of that structure.
Employment Law Red Flags Remote Workers Should Know
Not every employer will purposefully withhold wages. But there are certain things you should look out for when working remotely.
If your remote job involves any of the “red flags” below… Keep reading to learn what you can do about it.
Unpaid Off-The-Clock Work
This is far too common with remote jobs.
Employers expect remote workers to be “always on”. Meaning; they’ll send you a message after hours and expect you to reply — without pay.
The law states that non-exempt employees must be paid for ALL hours worked. That includes the 10 minutes you spent reading emails before your work day officially started. And the phone call you took 20 minutes after clocks-out.
If your employer knew (or should have known) that work was being performed, they are obligated to pay you.
Classifying Remote Workers As Independent Contractors
This is a BIG RED FLAG.
Employers save money by classifying remote workers as independent contractors. Instead of employees.
They do this because independent contractors aren’t entitled to minimum wage, overtime pay, benefits, workers compensation, Unemployment Insurance contributions and they don’t pay employment taxes.
But it’s illegal to classify an employee as an independent contractor when their job duties and working relationship meets the definition of an employee.
States like California have adopted the ABC test which is used to determine worker classification. If your employer gets you classified as a contractor… you could be owed anywhere from $5,000 to $25,000 per violation.
Employers Not Reimbursing Business Expenses
Did you know that working from home costs money?
Internet bill. Phone bill. Office chair. Computer. Desktop printers. Streaming service subscriptions. Software programs. Office supplies.
When you work from home, your employer should be reimbursing you for every expense.
Many remote workers pay out-of-pocket for “work expenses” without even realizing they should be reimbursed.
While some states require employers to reimburse employees for expenses; California requires employers to pay up.
Look out for employers that expect remote employees to pay for business expenses on their own.
Overtime Violations
Remote employees work some of the longest hours. And a lot of employers don’t track overtime properly.
Employees who aren’t exempt from overtime must be paid 1.5x their regular rate for hours worked over 40 in a work week. In some states like California, overtime must be paid for hours worked over 8 in a day.
When employers rely on employees to “keep track of their hours”, overtime violations are bound to happen.
It’s the employers responsibility to track ALL hours worked — even for remote employees.
Skipping Required Breaks
Speaking of breaks…
This doesn’t apply to EVERY state. But if you live in a state that requires meal breaks and rest periods; your employer is legally responsible for ensuring those breaks are provided.
Many remote workers skip breaks because no one is there to enforce them. But if your employer doesn’t pay you for skipped breaks, they owe you premium pay.
Employees in California are required to be provided a:
- 30 Minute Meal Break for every shift over 5 hours
- 10 Minute Rest Break for every 4 hours worked
Remote employees are skipping breaks and nobody is stopping them. If your employer doesn’t enforce break times; track your hours and demand overtime pay for missed breaks.
Steps You Can Take To Protect Yourself
Now that you know the most common remote work red flags. Here’s what you can do about it.
Track your hours. Employers can’t cheat you out of wages if you keep accurate records of your time. Use a time tracking app or even document your own hours on a spreadsheet.
Log your expenses. Keep track of any and every business expense you incur. Some states require employers to reimburse employees for work expenses. You’ll need a log to prove it.
Review your employment contract. Your employer shouldn’t be classifying you as an independent contractor if your work relationship resembles that of an employee.
Understand local employment laws. Employment laws vary from state to state. As a general rule of thumb, remote workers are covered under the employment laws of the state they physically work in — not where the company is located.
Report the violations. If you’re confident that wage theft is taking place. Report your employer to the state labor department. Or the federal government’s Wage and Hour Division.
Wrapping Things Up
Remote work wage theft is prevalent. Every year, billions of dollars are stolen from employees across the country.
As companies transition to remote workforces, wage theft is becoming easier than ever.
But there are tell-tale signs that your remote job might be stealing your wages:
- Unpaid off-the-clock work
- Worker misclassification
- No reimbursement for business expenses
- Not paying overtime wages
- Skipping meal breaks and rest periods
Understanding your rights. And keeping track of your working hours/conditions can ensure you don’t lose out on hard earned wages.
Remote work is about freedom and flexibility. Not getting cheated out of your paycheck by your employer.
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