What a remote and hybrid work policy should cover, from eligibility and schedules to time tracking for hourly staff, equipment and expenses, security, state law and performance, with an outline you can adapt.
Many businesses moved to remote or hybrid work without a formal policy, relying on informal agreements. Over time that creates inconsistency: one manager allows full remote work, another does not; some employees are reimbursed for internet, others are not; nobody is sure whether an employee can work from another state. A written policy sets fair rules, protects the business and gives employees clarity.
With the EZTime time clock app, employees clock in from their phone with GPS and managers approve hours from anywhere.
Start by defining which roles can work remotely, fully or partly. Many frontline roles cannot, which is a fairness question to address openly. Base eligibility on the nature of the work, not on who asks. Define how employees request remote work, who approves it, whether there is a trial period and whether arrangements are documented in a written agreement. State that remote work is an arrangement that can be changed based on business needs, with reasonable notice, subject to any legal obligations such as disability accommodations.
Policy outline complete.
This is the section employers most often get wrong. Non-exempt remote employees must be paid for all hours worked, including overtime, just like on-site employees. The policy should require them to record start and end times and meal breaks accurately, prohibit working off the clock, require approval for overtime in advance (while making clear that unapproved overtime worked will still be paid) and explain how to correct missed punches. Short breaks of about 5 to 20 minutes are generally paid under federal law. See how to track remote employee hours and timekeeping policy.
The Department of Labor has addressed remote work directly in two bulletins:
In practice, a remote employee’s ten-minute coffee break is paid, just as it would be in the office. Write that into the policy so managers do not ask employees to clock out for short breaks at home.
State what the company provides, such as a laptop, phone, headset or software, how it must be cared for and returned and who to contact for support. Then address costs employees bear. Some states, including California, require employers to reimburse necessary business expenses, which can include a reasonable share of personal internet and phone costs used for work. Even where not required, a clear expense reimbursement policy avoids disputes. Our equipment checkout form helps track issued equipment.
If your business handles regulated data, such as health information, add the specific requirements. See the small business cybersecurity checklist.
Where an employee works matters. Employees are generally covered by the employment laws of the state where they physically work, including minimum wage, overtime, paid sick leave and final pay rules, and you may need to register for payroll taxes and unemployment insurance there. Require employees to get approval before working from a different state or country for more than a short period. See our state labor law pages.
Employers’ safety responsibilities can extend to home offices in some respects. Provide basic ergonomic guidance, ask employees to keep their workspace safe and explain how to report work-related injuries that happen while working from home, since workers’ compensation may apply. See our workers’ compensation guide.
Manage remote employees by results and clear expectations, not by visibility. Set measurable goals, hold regular one-on-ones and give remote employees the same access to training, recognition and promotion as on-site staff. Watch for unintended bias toward people who are physically present. Offering flexibility to frontline roles where possible, such as predictable schedules and shift swaps, helps balance fairness when they cannot work remotely.
Hybrid arrangements need their own rules. Decide whether on-site days are fixed (for example, Tuesday to Thursday for everyone), set by team or chosen by each employee within a minimum. Fixed or team-based days make in-person collaboration easier; individual choice gives more flexibility but can leave offices half empty on the wrong days. Publish the hybrid schedule like any other schedule, explain how to swap days and clarify whether commuting to the office on a hybrid day is ordinary commuting time, which is generally not paid, or travel during the workday, which generally is.
Include the policy in your employee handbook and collect signed acknowledgments.
EZTime lets remote employees clock in and out from a web browser or phone, records breaks, sends announcements and policy documents for e-signature and tracks time off requests in one place. Managers see hours and overtime in real time across remote and on-site staff. See employee communication app and e-signatures.
Eligibility and approval, hours and availability, communication, timekeeping for non-exempt staff, equipment and expenses, data security, work location rules, health and safety, performance expectations and how arrangements can change.
Non-exempt remote employees must be paid for all hours worked, including overtime, exactly like on-site employees. Require accurate time records and prohibit off-the-clock work.
Some states, including California, require reimbursement of necessary business expenses, which can include part of personal phone and internet costs. Check state law and set a clear policy.
Only with approval. Working from another state can bring that state’s employment and tax laws into play, so require employees to request approval before changing work location.
Generally yes, if the policy reserves the right to change arrangements based on business needs, with reasonable notice. Consider any legal obligations, such as disability accommodations, before changing an individual’s arrangement.
Use a clock-in tool that works on a phone or computer, require employees to record start, end and break times as they happen, and set a clear rule that all work, including messages after hours, must be recorded. Review timesheets weekly for missing punches.
Federal law does not require reimbursement in general, but expenses cannot reduce a non-exempt employee’s pay below minimum wage, and some states, such as California, require reimbursement of necessary business expenses. Decide your policy in writing.
Remote employees clock in on EZTime from the app or web, so hours and breaks are on record wherever they work.