Remote and hybrid work are now a permanent part of many workplaces, but the legal landscape around remote employees continues to evolve. In 2026, employers face growing compliance obligations as federal, state, and local rules intersect wherever employees actually perform their work.
Which Laws Apply to Remote Workers?
For most U.S. employers, remote employees are generally covered by the laws of the place where they physically work, not just where the company is headquartered. This means each remote worker can bring a different mix of state and local wage, leave, and notice requirements into play, even when they hold the same role and title.
When employees move or “work from anywhere,” noncompliance risk rises if HR and payroll records are not promptly updated to reflect the new jurisdiction. Mapping where employees sit and confirming which state and local rules apply is an essential first step in any 2026 remote‑work compliance strategy.
Wage and Hour Rules for Remote Employees
Wage and hour compliance remains one of the highest‑risk areas for remote teams. Employers must correctly classify remote roles as exempt or non‑exempt under the Fair Labor Standards Act and applicable state laws, even when the work is performed from home.
For non‑exempt remote employees, accurate timekeeping is critical: employers need clear policies on recording hours worked, overtime, breaks, and any restrictions on off‑the‑clock work such as after‑hours emails or messaging. State and local minimum wage and overtime rules can exceed federal requirements, so pay practices must be checked against each worker’s location.
Pay Practices, Pay Equity, and Geographic Differentials
Many organizations use geographic pay differentials to align salaries with local labor markets and cost of living, especially for dispersed remote teams. While lawful in principle, these practices must be implemented carefully to avoid discrimination or unequal pay for substantially similar work.
Increased pay transparency requirements and equal pay laws in several jurisdictions mean employers should be prepared to explain and document legitimate, job‑related reasons for pay differences, including location‑based adjustments. Reviewing compensation structures with both legal and DEI lenses can reduce litigation and reputational risk in 2026.
Expense Reimbursement and Home‑Office Costs
Some states require employers to reimburse employees for necessary business expenses, which can include home internet, mobile phones, and certain equipment used primarily for work. In those jurisdictions, shifting these costs to employees can create both statutory violations and, in some cases, effective minimum wage issues.
To manage this risk, employers should adopt clear remote‑work and reimbursement policies that define which expenses are covered, how employees submit claims, and what documentation is required. Periodic audits of reimbursement practices help ensure that remote employees are not effectively subsidizing the business or being treated inconsistently by different managers.
Expense reimbursement rules, digital poster obligations, and tax nexus vary widely across states. Our companion piece Federal vs. State Labor Laws in 2026 can help you align policies with each jurisdiction’s requirements.
Health, Safety, and Workers’ Compensation at Home
Workers’ compensation coverage usually extends to work‑related injuries that occur in a remote employee’s home or other approved work location, even though the employer does not control that space in the same way as a traditional office. Employers should therefore maintain clear telework agreements, define working hours and duties, and provide guidance on setting up a safe and ergonomic workspace.
While OSHA’s direct oversight of home offices is limited, employers still benefit from offering safety training, ergonomic tips, and straightforward processes for reporting incidents or hazards. A consistent approach to documenting injuries, regardless of where they occur, supports both compliance and fair treatment of remote workers.
Required Notices, Posters, and Digital Access
Federal and state law require employers to provide certain labor law notices and posters; historically this meant posting them in a physical workplace. For remote workers, regulators increasingly accept electronic delivery, intranet posting, or direct digital access, provided employees can easily view the information.
Employers should review their current notice strategy to ensure remote staff receive the same legally required information as on‑site employees, which may include digital poster solutions, emailed notices, or a centralized HR portal. Keeping these materials current with 2026 federal and state updates is a simple but important part of remote‑work compliance.
Leave, Accommodation, and EEO in Remote Settings
Remote work does not eliminate obligations under federal and state leave laws, anti‑discrimination statutes, or accommodation requirements. Employers must still track eligibility for laws such as the Family and Medical Leave Act, as well as any applicable state and local paid sick or family leave provisions, based on where employees perform their work.
Reasonable accommodation processes also apply in remote settings, whether related to disability, religion, pregnancy, or other protected characteristics. Employers should ensure policies, complaint channels, and training address harassment and discrimination that can occur through virtual communications, and that remote workers know how to raise concerns safely.
Practical Compliance Checklist for Employers in 2026
To navigate remote worker compliance in 2026, employers can focus on a practical set of action items:
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Map where all remote and hybrid employees physically work and identify applicable federal, state, and local laws.
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Create or update a central register of jurisdictions, including key wage, leave, posting, and reimbursement rules for each location.
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Review job descriptions, exempt/non‑exempt classifications, and timekeeping processes to ensure they reflect actual duties and remote workflows.
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Evaluate pay practices, geographic differentials, and bonus structures for fairness, documentation, and alignment with pay‑equity and transparency laws.
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Update written policies on remote work, expense reimbursement, and home‑office expectations, and train managers on consistent application.
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Implement or refine digital posting and notice solutions so remote workers have easy access to required labor law information and key HR policies.
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Standardize procedures for reporting and documenting workplace injuries and safety concerns for remote employees.
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Conduct periodic mini‑audits of a sample of remote employees to confirm that pay, timekeeping, and reimbursements are being handled according to policy.
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Coordinate HR, payroll, legal, and IT so that moves, location changes, and new remote hires automatically trigger jurisdiction‑specific compliance checks.
By treating remote work as a core, long‑term part of the organization rather than a temporary exception, employers can reduce legal risk, support a better employee experience, and stay ahead of evolving labor law requirements in 2026 and beyond.
For employers managing a distributed workforce, keeping up with evolving labor laws is critical. From expense reimbursement and state tax nexus to wage, leave, and digital poster requirements, remote work adds layers of complexity that can expose organizations to risk. To see how these changes fit into the broader landscape of labor law updates, read our comprehensive guide: Navigating Labor Law Changes: Key Updates and What They Mean for You.