Red State Blue State Where Lawsuits Await

Red State Blue State Where Lawsuits Await

Spring just might finally be here. The weather’s false start seems to be in the rearview mirror, and hope officially springs eternal. And speaking of false starts and hope springing eternal, this weekend also brings us the NFL draft – or as Jets and Giants fans have recently come to call it: the highlight of our year.

Staying on the theme of things that look promising at first, but could devolve into a bigger issue, this week we’re diving into the potential headaches that remote workers could bring when it comes to complying with different state laws. Enjoy!

Remote Workers and the State Laws They Can (Maybe) Sue Under

You already know that remote work skyrocketed during the pandemic. Despite the latest efforts to get everyone back in the office full-time, remote and hybrid work is still very much a thing, often involving employees working in different states. And while some states have incredibly robust employment laws (yes, we’re talking about you, California), others … don’t.

Now, brilliant reader, you might be wondering, “Can my remote workers from a pro-employer state suddenly file claims under the laws of my company’s pro-employee state?” And the answer, as always, is: it depends (yes, we know, it’s a cheap lawyer joke – but we swear it’s also the truth in this case!). But this is starting to become more and more of a concern.

In a recent case, a former KPMG manager working remotely from Georgia filed a lawsuit under New York state laws, despite her work being done far outside of New York. The court ruled that the employee could proceed with her claim under New York law, even though she was physically in Georgia. If that sounds familiar, it’s because we saw a similar situation in New Jersey, where an out-of-state employee filed claims under New Jersey law, despite not working in the state.

Before you start hyperventilating into a paper bag, let’s be clear – these cases don’t mean remote workers are automatically or always entitled to sue under the laws of their employer’s state. These cases are very fact-specific, and the outcomes often depend on the details of the employment relationship and where the work is being performed. But this is a trend we’re seeing more and more, and it’s worth keeping an eye on.

So, what can you do to mitigate this potential legal mess? Here are a few tips to keep your remote work policy on track:

• Clearly Define Jurisdiction and Governing Law: In your employment contracts, clearly identify which state’s laws govern the contract and which state has jurisdiction over any disputes. This can help avoid confusion if a remote worker attempts to bring a claim under more favorable laws of the employer’s state.
• Review Your Remote Work Policies: Make sure your remote work policies are up-to-date, especially when it comes to issues like pay equity, paid leave, and benefits. If employees are working from out-of-state, ensure that your company’s policies are compliant with local laws.
• Monitor Emerging Trends: It’s not a coincidence that most of these decisions are originating from pro-employee states, and so this will matter more depending on jurisdiction. Stay on top of any relevant case law or legal developments in the states where your employees are physically working.
• Consult an Expert: You knew this was going to be one of the tips! But seriously, if you’re not sure about the specifics of your remote work arrangements and how they could be impacted by state laws, it might be time to chat with your friendly neighborhood employment lawyer. It’s better to be proactive than reactively sued.

Have a great weekend, all, and stay vigilant. And as always, if you’ve got questions, you know we’ve got answers.

~ The W + K Team