With flexible work environments (like hybrid and remote positions) increasing for industries across the world, employee residence is not always a deciding hiring factor. While this opens up opportunities for employees, often, it can set back companies that are unsure of how to manage their talent across state borders. This ranges from more complex issues, such as compliance with local employment laws, to something that used to be as simple as sick leave. Complicating employment matters even further is when organizations begin building extended workforces through the hiring of temporary labor and independent contractors who also reside out-of-state. In this regard, it is critical that proper worker classification is followed in order to ensure that companies are complying with the latest regulations for in- and out-of-state workers. Experienced staffing firms can help outline your game plan, and that includes what rules you must follow when hiring a multi-state workforce. This way, all you have to do is sit back and focus on getting the best candidates for the work!
Local Employment Laws
The federal Fair Labor Standards Act (FLSA) is the foundation of laws to consider when hiring out-of-state because its complex set of regulations covers minimum wage, overtime, and travel time that must be followed to avoid legal action and penalties. Usually, remote workers are subject to the laws of the city and state where they are physically working. But it’s not that easy; depending on each state’s laws, there might be an exception for employees who are just temporarily working there. That’s the part that the FLSA does not cover and requires employers to become conversant with the laws of each state in which their workforce members are stationed.
For example, in Florida, there are no state laws that force employers to offer paid or unpaid leave to their employees. On the other hand, In New York, there are multiple state laws in place, such as paid family, domestic violence, and pregnancy leave, that provides accommodations for these circumstances. Or take New England states, for example; according to Business Magazine, there are over five different requirements on the number of hours an employee can work before their meal break.
Besides breaks and wages, what should you do if your employee gets sick? In some states just because they are telecommuting doesn’t mean they don’t get benefits while they’re under the weather. Specifically after the Covid-19 pandemic, many new laws mandated paid sick leave in states such as New Mexico, Colorado, and Virginia. There are still nuances on what extends to a contracted workforce as well.
Learning each state’s guidelines and ensuring to keep up with them is time-consuming. This is where staffing agencies come in and make your life easier, especially because full-time hiring can vary greatly in labor regulations than hiring contractual consultants, especially for a multi-state workforce.
Having a team that is focused on handling multi-state laws and responsibilities not only ensures your company is legally functioning but creates a safer and dependable work culture. According to Forbes, proactive training is essential with multi-state sick leave. Since many managers are unaware of the sick leave laws in varying states, having recruiters who are dedicated to obtaining this knowledge will reduce the risk of liability for non-compliance.
Job Postings for Hiring a Multi-state Workforce
Now that you know which laws to keep an eye on, you can focus on getting the best talent each location has to offer. But before publishing your job posts or descriptions, you must take into account that states govern this process as well.
- Disclosing Wages: If you’re operating in Ohio with a company of more than 15 employees, you must share the salary range for a position if an applicant asks for it. But if your business is in Nevada, you must provide the salary range automatically. This essential feature in job posts derives from Pay Transparency Laws that require employers to disclose compensation information to the public, which varies depending on the jurisdiction.
- General Description of Benefits: Many states do not have to include their benefits at the beginning of the hiring process. But states such as Washington must extend benefits information to external candidates. This might look like things such as health insurance, retirement plans, paid time off, etc.
- Criminal Record: As of 2021, many companies may not ask about an applicant’s criminal history only after an offer has been made. But sometimes it’s quite the opposite; for instance, San Francisco has strict rules regarding candidate arrest records and requires any position where employees will work at least eight hours per week to state the following in all job postings: “Pursuant to the San Francisco Fair Chance Ordinance, we will consider for employment qualified applicants with arrest and conviction records.”
After reviewing this plan, the idea of conducting business beyond your own state might seem overwhelming. However, as you seek to expand your business with a multi-state workforce, compliance management, regulatory knowledge and planning is readily available with the right staffing firm. Here at SSI people, we put people first no matter where they are located!