Continuing the theme about remote worker issues in this week’s EmployNews, we have recently had several clients that were surprised to learn that fully remote employees had moved to another state without advising them in advance. These relocations can cause a number of issues for companies, most significantly sales and income tax obligations in those new states. U.S. states (and even some municipalities) have widely differing approaches toward small numbers of remote workers living in their states, but some will apply these tax and employee benefit requirements for even one resident worker.

Employers with remote workforces sometimes make intentional decisions to avoid employing individuals in certain states to avoid these obligations. If a remote worker moves and notifies the company after the fact, the employer may have already incurred these obligations without having the ability to approve the relocation. From the remote employee’s perspective it may never cross their minds that the company cares about where they are based. Adopting a remote worker relocation policy is a good way to avoid these issues.

The policy can remind the remote workforce that remote work is only approved for their current location. In the event they decide to relocate their place of residence, they must provide specified advance notice, and the company has the right to decide whether to continue the employment relationship at the employee’s new location. The policy can advise employees that failure to provide this advance notice is grounds for termination. By explaining its rules and reasoning behind these rules, employers can hopefully avoid conflicts and misunderstandings with remote workers who decide to relocate.

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