Off the Clock, Out of Compliance? Managing Wage-and-Hour Risk in Remote Workforces
The shift to remote and hybrid work arrangements has fundamentally changed how employers manage (and potentially mismanage) wage-and-hour compliance. While flexible work models offer significant benefits, they also present unique challenges under the Fair Labor Standards Act (FLSA) and analogous state laws. Wage-and-hour claims remain one of the most frequently litigated employment issues, and remote work has created new avenues for liability, particularly with respect to timekeeping, overtime, and off-the-clock work. Below are some key compliance risks that employers should be addressing now, along with practical strategies to mitigate exposure. Tracking Hours Worked Non-exempt employees must be paid for all hours worked, including time that may be difficult to capture in a remote setting . Even small increments of unrecorded time can lead to significant liability when aggregated across a workforce. Without direct supervision, employees may: Work outside scheduled hours Respond t...