Flextime, work from home (WFH), compressed workweek, shift work, job-sharing, part-time work, telecommuting, telework, hoteling, and snowbird programs are all flexible forms of work that are increasingly attractive to employees. But employers considering implementing one or more of these flexible forms of employment must be aware of a number of legal issues and the related federal and state statutes—including:
• equal employment opportunity compliance (nondiscrimination laws)
• wage and hour compliance (FLSA)
• benefits compliance (ERISA)
• workers’ compensation (state workers’ compensation statutes)
• occupational safety and health (OSH Act)
• disability accommodation (ADA)
• privacy and confidentiality (e-mail, phone, internet use)
• independent contractor/employee status (proper classification)
In California, employers offering flexible work arrangements such as flextime, WFH, and telecommuting must comply with various federal and state regulations. Equal employment opportunity laws, such as Title VII and the California Fair Employment and Housing Act (FEHA), require nondiscrimination in all employment practices. Wage and hour compliance is governed by the Fair Labor Standards Act (FLSA) and California labor laws, which set standards for minimum wage, overtime, and recordkeeping. Benefits compliance falls under the Employee Retirement Income Security Act (ERISA) and state-specific regulations. Employers must also adhere to California's workers' compensation statutes to provide coverage for work-related injuries or illnesses. The Occupational Safety and Health (OSH) Act, along with California's Division of Occupational Safety and Health (Cal/OSHA), sets guidelines for safe and healthy work environments, even when employees work remotely. Disability accommodations are mandated by the Americans with Disabilities Act (ADA) and California law, requiring employers to provide reasonable accommodations for qualified individuals. Privacy and confidentiality concerns, particularly related to electronic communications, must be addressed in accordance with state privacy laws and the Electronic Communications Privacy Act (ECPA). Lastly, proper classification of workers as employees or independent contractors is crucial to comply with both the Internal Revenue Service (IRS) guidelines and California's Assembly Bill 5 (AB5), which applies a strict ABC test to determine employment status.