Remote work is here to stay. Whether it’s two colleagues, fifty, or something in between, the traditional office is no longer the default. And while this shift might feel empowering, it brings a new set of less-than-glamorous responsibilities, particularly in the legal department.
Leaving behind the cubicles and commuting doesn’t mean leaving behind accountability. Issues like employee classification, data privacy, and workplace safety still matter, even if your team is logging in from kitchen tables or makeshift attic desks.
Who’s an Employee, Really?
Before firing off another “quick question” to your freelance graphic designer, it’s worth pausing. Is that person truly a contractor, or should they be treated as an employee?
In the U.S., that distinction has weight. Misclassification can lead to back taxes, fines, and a possible audit. To make matters more complex, the IRS, Department of Labor, and individual states all have their own criteria for what defines an employee.
As a general rule, the more control you have over a person’s hours, tools, and tasks, the more likely they are to fall under employee status. That means you’re responsible for payroll taxes, benefits, and onboarding. If you’re uncertain, a conversation with a labor law attorney could prevent serious headaches later on.
Where Your Team Works Matters
Maybe you’re based in Atlanta, but your developer has moved to Oregon. Or your assistant handles tasks remotely from Vermont. Everything may run smoothly on Slack, but from a legal standpoint, each of those states may now consider your business to be operating there.
Having remote employees in multiple states could require registering as an employer in those jurisdictions. That may include withholding state income tax, complying with wage laws, and following different policies on sick leave and home office reimbursements.
It’s a smart move to check state-specific requirements before sending out your next offer letter.
Workplace Safety Remains a Responsibility
Even if someone’s “office” is their breakfast bar, you still have an obligation to provide a safe working environment.
That doesn’t mean you need to inspect every home setup, but you can provide guidelines and support. Some companies offer stipends for ergonomic chairs or standing desks. Others share safety checklists so employees can evaluate their own spaces.
Time Tracking Isn’t Optional
Remote teams still need to follow the Fair Labor Standards Act (FLSA). That means tracking hours for hourly or non-exempt employees and ensuring overtime is handled appropriately.
Just because someone’s working late at night or across odd hours doesn’t mean those hours disappear. If they add up to more than 40 in a week, they may be entitled to overtime.
Time-tracking systems—whether digital logs or integrated tools in your project management software—help you stay compliant without micromanaging.
These small gestures go a long way toward reducing workers’ compensation claims. Remote injuries that occur during work hours while performing work tasks can still be covered, so documentation and communication are key.
Data Privacy: It’s More Than Passwords
When your team works across homes, coffee shops, and coworking spaces, data security becomes a little trickier—and much more important.
Sensitive client information, intellectual property, and internal documentation all need to be protected. That starts with requiring VPN access, two-factor authentication, and encrypted devices. But it doesn’t stop there.
Have a documented policy outlining how information is accessed, stored, and shared. This helps everyone on your team understand expectations and reduces the risk of data breaches.
Policies and Paperwork Still Matter
Remote work thrives on clarity. That clarity starts with paperwork.
Contracts, NDAs, and employment agreements should spell out the essentials: hours, communication preferences, and job expectations. These don’t need to be complicated, but they should exist.
Many small businesses also benefit from a remote work addendum or handbook that covers topics like equipment usage, reimbursement policies, and digital conduct. It’s not about policing—it’s about setting shared ground rules.
Thinking Beyond the Home Office
For businesses that ship physical products, remote work doesn’t eliminate the need for logistics—it just changes how those operations look. This is where warehousing providers become an important part of the puzzle.
By outsourcing storage and distribution, companies can run leaner without sacrificing service quality. These partnerships should be formalized with contracts that address liability, insurance, and service expectations. It’s not just about cost—it’s about reliability and alignment with your brand’s standards.
Don’t Overlook Local Rules
Even if you’ve checked all the federal and state boxes, local regulations can still catch you off guard.
Cities may have their own ordinances around sick leave, wage laws, or required job postings. If someone on your team is hosting clients at home or shipping goods, zoning laws may also apply.
Touching base with a local attorney or accountant can ensure you’re not missing anything. It’s not about doing more—it’s about doing it right.
International Hires Add Complexity
Hiring across borders can offer access to fantastic talent, but it comes with legal complexity.
Every country has its own tax, benefit, and labor rules. If you’re not working with a global payroll provider or Employer of Record (EOR), you’ll need to ensure you’re in compliance with local laws where your team member resides.
Misclassifying international workers or skipping local compliance steps can result in penalties that stretch across continents. Make sure you understand whether you’re hiring a contractor or an employee, and what that means where they live.
Remote Work Isn’t Temporary Anymore
This isn’t a stopgap. Remote work is now a fundamental part of how many businesses operate.
That means putting systems in place—not just to manage productivity but to ensure you’re legally covered. Building a remote infrastructure that’s thoughtful, legally sound, and well-communicated supports your business in the long run.
As an entrepreneur, it’s your responsibility to lead with intention. The laws may shift, and the tools may evolve, but doing right by your team and your business is always the right strategy. That includes being proactive, not reactive—building policies before issues arise, setting clear expectations, and staying informed about the environments in which your people work. Remote work isn’t about loosening standards; it’s about reimagining how you meet them. With the right legal footing, your business can grow confidently, no matter where your team logs in from.