Does telecommuting affect nonexempt status?

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in Compensation and Benefits,Human Resources

Q. We’ve allowed employees to work from home on occasion and are considering making it an option for some positions. Does exempt/nonexempt status matter when it comes to employees working from home on a permanent basis?

A. It matters to the extent that you need to pay nonexempt employees for all time worked and it is more difficult to monitor that time when an employee works remotely. Consequently, you must rely on the employee to accurately record his/her time and you must accept that time as accurate unless you have evidence to the contrary. You also must pay remote employees for any overtime they work, as self-reported.

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