Employment-related disputes remain a significant source of litigation exposure for organizations. As remote and hybrid work have become seemingly permanent workplace features, employers face new compliance challenges constantly.

Remote and Hybrid Work: Benefit or Legal Risk?

Remote and hybrid work arrangements are no longer viewed as temporary responses to the COVID-19 pandemic but have become integral components of long-term workforce strategies. Organizations have realized benefits including expanded access to talent, reduced real estate costs, greater workforce flexibility, and improved employee satisfaction, while employees increasingly view workplace flexibility as an important factor in employment decisions.

While remote work has effectively become a permanent feature of many workplaces, employers face a range of new and increasing challenges. Human resources, legal, regulatory and industry compliance, and information technology teams must now routinely address issues such as multi-state employment concerns, wage-and-hour tracking, leave eligibility, employee monitoring, expense reimbursement, workplace safety, and disability accommodations.

The transition from pandemic-era flexibility to formalized remote-work policies has also increased legal scrutiny. Decisions regarding who may work remotely, how often employees must report to the office, and whether exceptions should be granted can have significant implications under employment, leave, wage-and-hour, and anti-discrimination laws.

Policies that were once implemented quickly and informally are now being scrutinized by courts, regulators, and plaintiffs’ attorneys as employers establish long-term workplace expectations.

What Can Go Wrong?

Questions regarding remote work can give rise to a variety of claims. The following areas represent some of the most common litigation and compliance concerns facing employers with remote and hybrid workforces.

Return-to Office Initiatives

Employees who successfully worked remotely for several years may challenge return-to-office requirements, particularly when those mandates affect individuals with disabilities, pregnancy-related needs, or other protected characteristics, or where caregiving responsibilities intersect with protected rights under federal, state, or local laws. Employers that fail to carefully evaluate such requests may face disability discrimination or failure-to-accommodate claims.

Wage and Hour Disputes

Without direct supervision, employers may struggle to accurately track employee work hours, overtime, meal breaks, and off-the-clock activities. Employees who answer emails after business hours, attend virtual meetings outside scheduled shifts, or perform work through mobile devices may later assert claims for unpaid wages or overtime compensation. The U.S. Department of Labor (DOL) in its guidance has stated that employers must compensate employees for remote work they know or have reason to believe is being performed.

These risks are particularly significant for nonexempt employees whose work schedules can become less clearly defined outside a traditional office environment.

Inequities Among Employees

If some workers receive remote-work privileges while others do not, employers may face allegations of inconsistent treatment. Even when decisions are based on legitimate business considerations, employees may claim that remote-work approvals or denials were influenced by age, gender, disability status, or another protected characteristic. Such claims often focus not just on the policy itself but also on whether it was applied consistently across the workforce.

Complexity Due to Varying State Laws and Workplace Regulations

The legal challenges associated with remote work become even more complicated when employees live and work in multiple states. Historically, many employers primarily applied the laws of the state where a physical office was located. Today, however, a single team may include employees working from several different jurisdictions, each with its own employment laws and regulatory requirements.

Employers must evaluate not only federal requirements but also the laws of every jurisdiction in which remote employees perform work, as state laws may differ significantly with respect to wage-and-hour requirements, employee privacy protections, leave laws, expense reimbursement obligations, and workplace accommodations. This challenge has become increasingly important as states continue to enact new employment, privacy, and workplace regulations.

Further, remote work can trigger unexpected tax, benefits, and jurisdictional issues. An employee working from a different state may create new compliance obligations related to payroll withholding, unemployment insurance, workers’ compensation coverage, and employment registration requirements.

Employee Monitoring

The rise of employee monitoring technologies further complicates compliance. Employers increasingly rely on software that tracks productivity, computer activity, location information, and other metrics. However, privacy laws governing employee monitoring vary by state, and some jurisdictions impose disclosure, consent, or notice requirements before such monitoring can occur. For example, New York Labor Law § 203-c requires private employers to provide notice of certain electronic monitoring activities.

Failure to comply with these requirements may expose employers to privacy-related litigation and regulatory scrutiny.

Accommodation Requests and Disability Disputes

Employers are increasingly facing accommodation requests from employees seeking remote or hybrid work arrangements due to medical conditions.

Employees with disabilities may argue that they are able to perform the essential functions of their positions remotely, particularly if they successfully worked from home during the pandemic or under previous flexible work policies. Courts and the EEOC continue to evaluate these claims through a fact-specific analysis focusing on essential job functions and the effectiveness of remote work arrangements.

As a result, requests for remote work have become a common component of the reasonable accommodation process under the Americans with Disabilities Act (ADA) and similar state laws.

Employees may contend that a remote arrangement is necessary to manage a chronic health condition, reduce exposure to illness, address mobility limitations, or accommodate treatment schedules. Employers may maintain that regular in-person attendance is an essential job function necessary for collaboration, supervision, customer interaction, or other business needs. When these competing interests collide, disputes can arise over whether the employer appropriately considered the request and complied with its legal obligations.

Cybersecurity and Data Privacy

Remote work also raises concerns regarding the protection of confidential and proprietary information. Employees working outside the traditional office environment may access sensitive business data in shared living spaces, use personal devices for work-related activities, print confidential documents at home, or store information on unauthorized platforms. These practices can increase the risk of inadvertent disclosures, trade secret misappropriation, or violations of contractual and regulatory confidentiality obligations.

Employers operating in highly regulated industries may face additional compliance challenges related to safeguarding customer information, health care records, financial data, or other protected information. Employers should implement comprehensive cybersecurity policies and regularly assess the effectiveness of their security controls.

Employer Considerations

As remote and hybrid work arrangements continue to evolve, employers should regularly review workplace policies, evaluate compliance obligations across all jurisdictions where employees perform work, and document employment decisions carefully. Employers that recognize remote work as a permanent feature of the employment landscape and develop clear, consistent, and legally compliant policies will be better positioned to reduce litigation exposure while maintaining the flexibility that today’s workforce increasingly expects.

A knowledgeable employment attorney can help you gain an understanding of the unique difficulties each workplace conflict presents and work toward a solution that benefits you. Tully Rinckey attorneys have the experience to assist both employees and employers in achieving their objectives, regardless of the matter, which may include discrimination, harassment, or any other claim involving worker rights or employer responsibilities. Call 8885294543 or contact us online today for a consultation and get an advocate who will fight for your rights and help secure your career and your future.

 Amanda L. Smith, Esq. is a Partner in Tully Rinckey PLLC’s Buffalo office, where she focuses her practice on Federal and State Employment and Labor Law.

Benjamin Westerman, Esq., a Senior Associate, focuses his practice on federal sector labor and employment and New York State employment law out of Tully Rinckey PLLC’s Latham office. Benjamin represents clients in federal, state, and private employment law matters, including claims of discrimination, harassment, retaliation, whistleblower actions, and disciplinary matters.