Remote Work Policy: What to Include in Your Employee Handbook

Remote and hybrid work have moved from emergency arrangements to permanent workforce strategies. But many employers still have not formalized their remote work policies in their employee handbooks. Without a written policy, you face inconsistent expectations, compliance gaps, and legal exposure. Here is what your remote work policy should cover. ## Eligibility and Approval Not every role can be performed remotely, and not every employee may be eligible. Your policy should define which positions or job categories are eligible for remote work, whether remote work is fully remote, hybrid, or case-by-case, the approval process who approves, what criteria are considered, and whether remote work arrangements can be modified or revoked. Be specific. Vague eligibility criteria lead to inconsistent decisions that can invite discrimination claims. ## Work Schedule and Availability Remote employees need clear expectations about when they must be available. ### Core Hours Many companies establish core hours during which remote employees must be reachable — for example, 10 a.m. to 3 p.m. in the company's primary time zone. Outside core hours, employees may have flexibility to structure their workday. ### Time Zone Considerations If your team spans multiple time zones, your policy should address how meetings are scheduled, expectations for response times, and how core hours apply to employees in different zones. ### Overtime and Timekeeping Remote work does not change wage and hour obligations. Non-exempt remote employees must still track all hours worked and receive overtime pay under the FLSA and applicable state laws. Your policy should explain timekeeping requirements for remote workers, that working outside scheduled hours without authorization is prohibited, and that all hours worked — including checking email or responding to messages outside normal hours — must be recorded. ## Workspace Requirements Your policy should set expectations for the remote workspace, including a dedicated workspace that allows for focused work, reliable high-speed internet specify minimum requirements if applicable, a secure and private environment for handling confidential information, and ergonomic considerations and whether the company provides equipment or stipends. ## Equipment and Expenses ### Company-Provided Equipment Specify what equipment the company provides laptop, monitor, keyboard, headset and the employee's responsibility for maintaining and returning it. Include policies on personal use of company equipment and the return process when employment ends. ### Expense Reimbursement Several states require employers to reimburse employees for necessary business expenses, including expenses incurred while working remotely. States with expense reimbursement requirements include California Labor Code Section 2802, Illinois 820 ILCS 115/9.5, Montana, Iowa, New Hampshire, North Dakota, and South Dakota. Even in states without reimbursement mandates, many employers provide stipends for internet, phone, and office supplies. Your policy should describe what expenses are reimbursable and the submission process. ## Data Security and Confidentiality Remote work introduces security risks that your policy must address. ### Security Requirements Your policy should require use of company-approved VPN connections, password-protected and encrypted devices, multi-factor authentication on all company systems, locking screens when stepping away, and avoiding public Wi-Fi for company work without a VPN. ### Confidential Information Employees working remotely must protect confidential and proprietary information. Your policy should address storing physical documents securely and shredding when no longer needed, not sharing screens in public spaces, ensuring family members or roommates do not have access to company systems or data, and video call etiquette regarding sensitive information. ### Data Breach Reporting Require immediate reporting of any security incidents, lost or stolen devices, or suspected data breaches. ## Communication Expectations Remote work succeeds or fails based on communication. Your policy should establish which communication tools the company uses Slack, Teams, Zoom, email and their intended purposes, expected response times during work hours, meeting attendance expectations cameras on or off, in-person meeting requirements for hybrid workers, and how employees should communicate availability status indicators, shared calendars. ## Performance and Accountability Your policy should clarify that remote employees are held to the same performance standards as in-office employees. Address how performance is measured output-based rather than hours-based where applicable, check-in frequency with managers, how performance issues will be addressed, and that remote work arrangements may be modified if performance declines. ## Tax and Multi-State Compliance Remote work creates complex tax and employment law implications, particularly when employees work from different states than the company's location. ### State Income Tax Employees working remotely from a different state may create nexus for the employer and income tax obligations for the employee. Your policy should require employees to notify the company before working from a location other than their designated remote work state. ### Employment Law Compliance Employees are generally covered by the employment laws of the state where they physically work, not where the company is headquartered. If an employee works remotely from California, California wage and hour laws, leave laws, and anti-discrimination laws apply. Your policy should address this and require notification of any change in work location. ## Workers' Compensation Injuries that occur during the course and scope of employment are covered by workers' compensation, even when the employee works from home. Your policy should remind remote employees that work-related injuries must be reported immediately through the same process as on-site injuries, maintaining a safe workspace helps prevent injuries, and the company has the right to inspect the home workspace if an injury claim is filed. ## Termination of Remote Work Arrangements Your policy should reserve the company's right to modify or end remote work arrangements. Specify the notice period the company will provide for example, 30 days, circumstances that may lead to revocation performance issues, business needs, restructuring, and whether the employee must return to an office or alternative arrangement. ## Frequently Asked Questions Can an employer require employees to return to the office? Generally yes, unless the remote arrangement is part of an employment contract or a reasonable accommodation under the ADA. Your policy should make clear that remote work is a privilege, not an entitlement. Do I need to reimburse remote workers for internet costs? It depends on your state. California, Illinois, and several other states require reimbursement of necessary business expenses. Even without a legal mandate, many employers offer stipends. What if an employee moves to another state while working remotely? This can create significant legal and tax implications. Your policy should require advance notice of any relocation, and the company should evaluate the impact before approving the move. ## Formalize Your Remote Work Policy A written remote work policy prevents confusion, protects your company, and sets clear expectations for employees. Rulewize helps companies build remote work policies that address state-specific expense reimbursement requirements, data security, and multi-state compliance — integrated into your employee handbook alongside all your other policies.