Staying FLSA Compliant in the Era of Remote Work

by Alexandra Buchler – Summer Associate

I.  Wage and Hour Compliance

Being aware of wage and hour laws is an important responsibility for employers operating in the United States. This means adhering to federal, state, and local labor laws, along with any union-negotiated requirements that may apply. Beyond simply knowing the law, wage and hour compliance involves implementing clear internal policies and accurate time monitoring systems that will help companies meet their legal obligations.

At the federal level, the Fair Labor Standards Act (FLSA) serves as the cornerstone of wage and hour law. It establishes standards for minimum wage, overtime pay, and recordkeeping. However, the FLSA does not address all aspects of compensation. For example, it does not mandate vacation or holiday pay, nor does it require employers to provide bonuses for weekend or night shifts, as these are typically left to the discretion of the employer or governed by a collective bargaining agreement.

The U.S. Department of Labor’s Wage and Hour Division enforces the FLSA, which covers more than 143 million workers across the country. To be covered at the enterprise level, a business generally must have at least $500,000 in annual gross sales or business volume. But even businesses below that threshold may still be subject to the law if their employees engage in interstate commerce. This includes activities such as making out-of-state calls, processing interstate transactions, or traveling across state lines for work.

One of the key requirements of the FLSA is that employers must pay overtime at a rate of 1.5 times the employee’s regular rate of pay for hours worked over 40 in a given workweek, regardless of whether the extra hours fall on weekends or holidays. Moreover, the FLSA mandates that employers keep accurate records of hours worked for all non-exempt employees, a task that has become more complicated in today’s remote work environment.

In the post-pandemic workplace of 2025, where remote work has become common for many industries, longstanding wage and hour rules continue to apply. Yet, the mechanisms employers are using to comply with these rules have had to evolve. Without physical oversight, ensuring that employees accurately track their time, take required breaks, and avoid unauthorized overtime has become significantly more difficult. Employers must proactively adapt to this new reality.

One way to maintain compliance is to invest in updated timekeeping systems, including digital apps that require employees to certify their time worked. Remote work policies should also clearly outline expectations regarding logging hours, taking breaks, and limiting work outside of scheduled shifts. Another essential action is training. Managers should know that even subtle encouragement to work off the clock, such as praising late-night emails or weekend availability, may open you up to legal risk. Employees should be instructed to log all hours worked and to take any applicable breaks as required by law or company policy. Routine audits of payroll and time records, whether conducted internally or through third parties, can help identify problems early and prevent potential investigations or lawsuits. Employers may also benefit from safe harbor provisions where applicable, allowing for the correction of inadvertent errors.

State laws further complicate compliance, particularly for employers with remote workers in multiple jurisdictions. For example, Ohio does not mandate lunch or rest breaks for employees aged 18 or older. Employers are free to implement their own policies, but they are not legally required to provide adult employees with time off for meals or rest during the workday. That said, if short breaks are offered, they must be counted as paid working time under federal regulations. Such breaks promote productivity and must not be offset against other compensable time. 29 CFR § 785.18

Kentucky, in contrast, takes a stricter approach. Under Ky. Rev. Stat. Ann. § 337.355, employees are entitled to a reasonable meal period, typically not provided sooner than three hours after their shift begins, minus any other mutual agreements in place. The challenge for employers, especially those managing remote workers, is enforcing this requirement when no one is physically present to monitor compliance. In these situations, automated break scheduling, time tracking software, and clear policy enforcement become crucial tools in demonstrating that employees were given the opportunity to take their required breaks.

As workplaces continue to shift away from traditional office settings, wage and hour compliance remains as critical as ever. Employers must be diligent not only in understanding their obligations under federal and state laws, but also in implementing systems that promote fairness, transparency, and accountability across increasingly decentralized teams.

II.  Data Security

Remote work also presents unique challenges for employers when it comes to data security. With employees accessing sensitive company information from personal devices and home networks, strong cybersecurity protocols are essential. Employers should require multifactor authentication (MFA) for all logins, ensure software and security patches are regularly updated, and provide clear guidance on safe practices such as avoiding public Wi-Fi unless connected through a secure virtual private network (VPN). Regular training on how to spot phishing attempts is also helpful, as these remain a leading cause of data breaches.

III.  Discrimination Potential

While virtual platforms promised greater inclusion, they have also created new ways for marginalized voices to be silenced. Unconscious bias can shape how emails or chats are received, and accessibility gaps, like missing captions for deaf employees or inadequate visual aids, continue to exclude those with disabilities.

Recognizing these challenges, the EEOC’s 2024 Enforcement Guidance on Harassment in the Workplace emphasizes the need to address misconduct across both physical and virtual settings. The guidance provides more than seventy examples, including cyberbullying, offensive online content, and exclusion from digital meetings, to help employers identify and prevent harassment.

Employers are reminded of their duty to act quickly and effectively when complaints arise. Regular training, straightforward policies, and user-friendly reporting systems are more critical than ever. When harassment is alleged, a prompt, thorough investigation followed by appropriate corrective action is essential to maintaining a safe and inclusive environment for all employees… no matter where they work.

Should you have any issues arise with wage and hour compliance pertaining to remote work, please contact our offices at (513) 381-0656 for assistance.