In recent years, the concept of remote work has evolved. Across the United States, remote working has risen from a niche arrangement to being a cornerstone of modern employment.
In response, states such as California and New York are refining their views on employment rights. As a result, the laws governing remote work are also changing. One encouraging change is California’s new Freelance Worker Protection Act (FWPA). This law, also called Senate Bill 988, took effect on January 1, 2025.
The act is designed to protect the civil rights of freelance workers. It also clarifies the responsibilities both employees and employers have. As we will see, however, there are many other laws that ensure your civil rights as a remote worker are protected.
California’s Freelance Worker Protection Act
In the eyes of the law, “freelance” workers are individuals or single-member organizations that perform “professional services” defined in California Labor Code Section 2778, for a hiring entity. Additionally, for FWPA to apply, the value of the work an individual performs must total $250 or more, either for one project or multiple projects, within a 120-day period.
The law empowers freelance workers by, allowing them to report clients who withhold payment or breach contracts. Reports should be made to the California Attorney General. In turn, the Attorney General will investigate and potentially penalize non-compliant clients.
Wage and Hour Employment Laws for Remote Employees
TheFair Labor Standards Act (FLSA) and California labor laws govern:
- Wages
- Overtime pay
- Working hours for both on-site and remote employees
Employers must ensure eligible employees who work over 40 hours per week, receive overtime pay. However, what is considered overtime may vary depending on the nature of the employment.
Enforcing these regulations for telecommuting employees can be challenging due to flexible schedules and fluctuating workloads. Nonetheless, failure to comply can result in serious legal consequences. Employers should implement reliable time-tracking systems and clearly define expectations in their telecommuting policies.
Telecommuting Contracts and California Remote Employee Laws
Under the FWPA, hiring parties and freelance workers are required to formalize their working relationships with clear, written contracts to protect freelance workers from the uncertainties often associated with independent contracting.
Comprehensive telecommuting contracts should explain what constitutes “working in a remote setting.” Expectations for availability should be discussed with all remote workers.
Procedures should also be outlined for tracking work hours when an employee performs services. Employers must also address data protection, confidentiality, and expense reimbursement to avoid potential disputes.
FWPA’s written contract requirement not only fosters clarity but also protects both parties from disputes.
Contracts for remote employees must include:
- Names and addresses of both parties
- A detailed, itemized list of what services the employee shall provide
- The employee’s payment rates and how payments will be made
- The agreed-upon payment date or a mechanism for determining it
- Clearly defined deadlines for the completion of services
The hiring entity must pay freelance workers by the specified date in the contract. If no date is provided, payment must be made within 30 days of service completion. This provision addresses a common grievance among freelancers: delayed payments.
Employers must keep these contracts for at least 4 years. Failure to comply may lead to investigations by the California Attorney General. Such measures are designed to safeguard freelancers from exploitative practices and foster a more equitable working environment.
What Expenses California Employers Must Cover for Remote Workers
California labor law requires employers to reimburse employees for necessary business work-related expenses. These can include internet access, cell phone data, office supplies, and even home office equipment such as desks or printers. The rationale is simple: Employees should not bear the financial burden of performing their job duties remotely.
Employees must adopt a proactive approach by tracking their expenses for reimbursement. Both employers and employees should be clear about acceptable expenses and the limits on reimbursement. Remote employees should also understand the process for requesting compensation for their expenses.
Addressing Anti-Discrimination and Harassment in Remote Settings
California’s anti-discrimination and harassment laws extend to remote work environments. Employers are expected to provide a safe and inclusive virtual workspace.
The work environment must be free from discriminatory practices or harassment based on:
- Race
- Gender
- Sexual Orientation
- Disability,
- Age
- Or other protected characteristics
Remote employees should be encouraged to report incidents of discrimination or harassment without fear of repercussions. Employers, in turn, must take prompt and appropriate action to investigate and resolve such complaints. Failure to do so can result in significant legal and reputational damage.
State Employment Laws Regarding Rest Breaks and Meal Periods
California law mandates specific rest and meal breaks for all employees (including telecommuting employees). Workers are also entitled to 10-minute rest breaks for every 4 hours worked and a 30-minute unpaid meal break for shifts lasting over 5 hours.
The right to take rest breaks must be clearly communicated and respected, even in a virtual setting. If an employee opts out of the meal break, he or she may not work more than 6 hours in total.
While enforcing these rules can be challenging in a remote setting, employers must remain vigilant. Regular check-ins should be performed to ensure remote employees take their legally required breaks. Doing so safeguards both their health and the employer’s compliance and the health of remote workers.
Telecommuting Employees Can File Workers’ Compensation Claims
Remote work does not exempt employees from the right to file workers’ compensation claims. If remote workers suffer a work-related injury or illness, they are entitled to the same benefits as in-office employees.
Employers must ensure that remote workers understand the process of filing claims. Companies should also educate remote employees about their eligibility for workers’ compensation benefits.
New York’s “Freelance Isn’t Free Act” and Remote Work
How do the Freelance Isn’t Free Act (FIFA) and other updated labor laws affect remote workers in New York?
Remote employees in New York now have stronger protections, ensuring their rights are upheld. Additionally, freelancers are entitled to timely compensation and can hold employers accountable for non-compliance
The Freelance Isn’t Free Act (FIFA) took effect on May 20, 2024, building upon New York City’s existing employment laws. FIFA aims to safeguard freelance workers – individuals operating as independent contractors – from payment disputes and exploitative practices.
Key provisions of FIFA include:
- Mandatory written contracts: Employers must establish written agreements with freelance workers for any project valued at $800 or more, either as a single project or through multiple assignments within a 120-day period.
- Timely payment: Freelancers must receive compensation by the date specified in the contract or within 30 days of completing the work if no date is provided.
- Prohibition of retaliation: Employers are prohibited from retaliating against freelancers who exercise their rights under FIFA, such as filing a complaint or seeking legal recourse.
- Enforcement mechanisms: Freelancers can file complaints with the New York State Department of Labor or pursue civil action against non-compliant employers.
FIFA excludes certain types of work, such as construction services provided by subcontractors or material suppliers. Employers must ensure their independent contractor relationships align with FIFA’s requirements to avoid legal complications.
Wage Theft Now Classified as Larceny Under Updated Labor Laws
Another important protection for workers in New York is the recent change in how wage theft is treated under the law. Wage theft occurs when an employer withholds payment for work the employee has already completed.
Under the new law, wage theft is now classified as larceny, a criminal offense. This means that if a company refuses to pay an employee their wages earned, it can face serious legal consequences.
The law allows wage theft offenses to be aggregated, meaning that if an employer has repeatedly withheld wages from an employee over time, or from a group of workers, those violations can be treated as one larger crime. This change provides greater accountability for employers who try to avoid paying remote workers fairly for their labor.
Federal Minimum Wage Increases Across New York
Starting January 2025, New York’s minimum wage is set to increase by $0.50 per year statewide. In New York City and the surrounding counties of Nassau, Suffolk, and Westchester, the average minimum wage ranges between $15.00 and $16.50 per hour.
For the rest of the state, minimum wage will gradually increase as well. These increases are part of a broader effort to strengthen minimum wage and labor laws in response to the rising cost of living.
For telecommuters and freelancers who are paid hourly, this wage increase provides much-needed relief. It ensures that their compensation keeps pace with inflation and the growing cost of everyday expenses.
Extended Time for Filing Employment Discrimination Claims
In a significant legal update, New York has extended the timeframe for employees to file discrimination claims with the New York State Division of Human Rights. Previously, employees had only 1 year to file claims about discriminatory practices, including sexual harassment. Now, this window has been extended to 3 years, aligning with the statute of limitations for other types of harassment claims.
This expanded period means that if an employee experienced workplace discrimination, whether related to gender, race, disability, or any other protected category, they now have more time to bring concerns forward.
Whether an employee is working from home or in the office, this change ensures you have a fairer opportunity to address any harmful behaviors they may face in the workplace.
Protecting Social Media Privacy for Employees Working Remotely
Some employers request access to their employees’ personal social media accounts, even for telecommuting workers or freelancers. However, as of March 12, 2024, New York employers are prohibited from requiring employees or job applicants to share access to their private electronic accounts, including social media profiles.
The new law safeguards employee privacy by preventing employers from requiring them to share personal information unrelated to their work. While there are exceptions, the law generally prohibits employers from demanding passwords or access to private online accounts.
Protect Your Civil Rights as a Remote Worker
As the nature of work continues to evolve, so too must the legal frameworks that govern it. By understanding these laws and working with experienced legal counsel, workers and employers can navigate the complexities of modern employment with confidence.
If you have questions about your rights as a remote worker or need assistance with employment law matters, our dedicated attorneys are ready to help. If your civil rights have been violated, our attorneys can fight on your behalf for justice to be rendered and your voice heard.
With a proven track record of success and a passion for seeking justice, we have enabled countless clients to achieve favorable outcomes. Let us guide you through the complexities of remote employment labor laws and ensure your civil rights are protected.
Contact the employment law attorneys at Allred, Moroko & Goldberg today to schedule a consultation and take the first step toward securing your workplace rights. We stand ready to help you protect your civil rights as a remote worker.