The Hidden Legal Dangers of Global Remote Work: What Every Employer Must Know

Navigating Global Remote Work Compliance

As remote work becomes the new norm for many companies, employers face significant obstacles in creating compliant multinational workplace policies. This involves addressing fundamental workplace law issues like discrimination, leaves and accommodations, and harassment across borders.

Key Employment Law Considerations

When U.S. employees work outside the country for short-term periods, multiple legal frameworks come into play. Chris Anderson and Bryn Goodman, principals at Jackson Lewis, emphasize that employment considerations exist on both U.S. and international sides.

U.S. Law Application Abroad

Even when employees work internationally, U.S. employment laws may continue to apply in certain circumstances. This includes:

• Americans with Disabilities Act (ADA) obligations for reasonable accommodations
• Family Medical Leave Act (FMLA) requirements for medical and family care
• Fair Labor Standards Act (FLSA) wage and hour regulations
• Discrimination and harassment protections

The Accommodation Dilemma

One of the most challenging areas involves remote work as accommodation. If an employer already has a remote work policy or allows remote work generally, denying an employee's request to work abroad could create compliance risks under disability laws. However, granting such requests introduces significant international legal exposure.

Wage and Hour Complications

For non-exempt employees working across time zones, tracking hours becomes extremely difficult. The FLSA continues to apply to U.S. employees working abroad temporarily, creating complex overtime and time-tracking challenges that many employers are unprepared to handle.

The Digital Nomad Visa Phenomenon

Many countries now offer digital nomad visas specifically designed for remote workers. While these provide immigration authorization, they create uncertainty about:

• Which country's employment laws apply
• Tax obligations and benefits requirements
• How long U.S. law continues to govern the employment relationship

Critical Risk Mitigation Strategies

Develop Comprehensive Remote Work Policies

Create robust remote work agreements that clearly establish:

• Expectations about work location and duration
• Confirmation that U.S. law applies
• Procedures for requesting international remote work
• Communication protocols for employee location changes

Avoid Contractor Misclassification

Simply reclassifying employees as independent contractors when they move abroad creates significant misclassification risks. Most legal frameworks will still consider them employees if their job duties and relationship to the company remain unchanged.

Consider Alternative Employment Structures

For longer-term international assignments, employers might explore:

• Employer of Record (EOR) arrangements
• Non-resident employer registration in some countries
• Careful analysis of when local employment laws might apply

The Importance of Consistency

Maintaining consistent application of remote work policies is crucial. Once employers grant exceptions or accommodations, they set precedents that can be difficult to reverse and may create obligations under various legal frameworks.

Proactive Compliance Approach

The most effective strategy involves getting ahead of the issue by:

• Implementing systems for employees to communicate their locations
• Creating formal request processes for international remote work
• Seeking expert advice on the specific countries involved
• Regularly updating policies as laws evolve

As the legal landscape continues to develop around global remote work, employers who take proactive, informed approaches will best position themselves to manage compliance risks while supporting their distributed workforce.