Managing Work-at-Home Employees

Most organizations that have adopted a telecommuting strategy maintain that it increases their employees’ productivity. A recent survey by U.S. West found that 62 percent of those entities with telecommuting policies believe that it is of equal benefit to both the employer and workers.

If your organization is considering offering telecommuting, or if you already have employees who work at home at least part of the time, you should be aware of some potential pitfalls.

Safety Issues
Allowing an employee to work at home raises issues of safety requirements being applied to the home office. If an employee will be using an office provided by another organization or working at home, you may want to review the setup and arrange a time to inspect the work site to ensure the employee’s safety.

Federal OSHA regulations apply to work performed by an employee in any workplace within the United States, including a workplace located in the employee’s home. All employers, including those who have entered into “work-at-home” agreements with employees, are responsible for complying with the OSH Act and with safety and health standards.

Ensuring safe and healthful working conditions for the employee should be a precondition for any home-based work assignments. Employers should exercise reasonable diligence to identify in advance the possible hazards associated with particular home work assignments and should provide the necessary protection through training, personal protective equipment, or other controls appropriate to reduce or eliminate any hazards. In some circumstances, the exercise of reasonable diligence may necessitate an on-site examination of the working environment by the employer. Employers must take steps to reduce or eliminate any work-related safety or health problems they become aware of through on-site visits or other means.

Employers should review telecommuting practices with state OSHAs, since there may be additional regulations for workplace safety even if the workplace is in a home.

Workers’ Compensation Issues
Employers also will need to determine how to address injuries that occur while working at home. If an employee slips and falls while making coffee at work and is injured, workers’ compensation will certainly apply. If an employee slips and falls while making coffee at home (if home is the employee’s workplace) and is injured, workers’ compensation will arguably still apply.

Employers will need to consider implementing policies describing how home-based employees report injuries for safety and workers’ compensation purposes.

Wage and Hour Issues
Employees working from home are subject to the same wage and hour laws as on-premises employees. If the employee is nonexempt, what methods will be used to ensure proper time keeping and to monitor overtime? Employees who work at home may work extra hours, resulting in overtime liability for overtime-eligible employees. Under the federal Fair Labor Standards Act, employees must be paid for all hours they are “suffered” or permitted to work. When the employer knows or should have known employees are working more than 40 hours per week, the employer will be liable for the overtime. If the work at home employee is nonexempt, some precautions should be taken to educate the employee and enforce the wage and hour policies.

Privacy Issues
Employees using home computers supplied by the employer can also create privacy issues if employers expect to be able to access the computers for business reasons, such as repairs or maintenance. Most employees would believe that they could keep private information, such as financial and medical information, on their home computer. Employer policies should clarify whether the employer will have ongoing access and whether employees have an expectation of privacy as to the information on their home computers.

Practical Management Issues
The are several important logistical considerations that must be addressed before you implement a telecommuting policy:

These issues can be worked out with some planning and an understanding on the part of the employee, employer, and manager regarding expectations and details of the arrangement. A written policy and telecommuting agreement can document these details.

The telecommuting policy can be simple, but must address the issues outlined above. Once you have drafted your policy, consider whether you want to use a separate telecommuting agreement. Some specific details you might want to document for each telecommuter are the following:

The following is a sample telecommuting agreement:

TELECOMMUTING AGREEMENT

I have read and understand the Telecommuting Policy dated _______ and I agree to the obligations, responsibilities, and conditions set forth in the policy.

I agree that I am responsible for

I understand that telecommuting is voluntary. I may stop telecommuting at any time. I also understand that the agency may change or discontinue its telecommuting policy at any time. Additionally, for business reasons or reasons relating to my job function or performance, permission to telecommute may be withdrawn at any time.

Employee Signature______________________________________________ Date_____________________

Supervisor’s Signature____________________________________________ Date_____________________

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