How Employees Working in Multiple States can Impact HR Strategy

By: Erica Jones, Sr. HR Business Partner at OperationsInc • Published April 1, 2024

In hybrid and remote working environments, employers must adjust their usual HR strategy. They have to consider policies and regulations they didn’t before and ensure their company is in compliance with the laws in the states where their employees work. They must also prevent remote employees from feeling isolated and disconnected from the rest of the company. 

What is the best HR strategy for dealing with employees in multiple states? 

Factors to Consider for a Multi-State Employer  

There are many considerations when you’re managing employees in multiple states with their own requirements and regulations. To create a successful multi-state working environment, take into account these factors:  

1. State Employment Laws  

Each state is unique and may have different laws in place, so you must communicate each employee’s rights in accordance with the state in which they’re working.  

2. Remote Work Policies

You’ll need to consider what guidelines to provide employees working from a home office regarding data privacy and proper information storage, or health and safety concerns relative to an employee’s work environment (i.e., do they work from a couch, coffee table, or a dedicated office?). You must also determine if you will establish core work hours across time zones to help teams collaborate, and what equipment the company will provide to remote employees.  

3. Culture and Employee Engagement

Consider how employee engagement initiatives need to be adjusted to include a remote workforce; how do employees feel connected with the company, manager, and team? How often will employees travel to the headquarters? 

How Do Policies, Regulations, and Laws Differ in Multiple States? 

Depending on the states in which your employees are working, there could be many differences in requirements that can affect your HR strategy. These may include: 

1. Job Posting Requirements

If you are posting a remote position, your company needs to be aware of pay transparency laws that may apply to applicants from states that require compensation ranges to be included in job advertisements. 

2. Leave Policies

States may have differing requirements for employees to take job-protected leave under various State Family Medical Leave Acts. Additionally, sick leave accruals and other policy details can vary widely by state.  

3. Paid Family Leave or Other State-Specific Payroll Tax Requirements  

Many states are rolling out Paid Family Leave programs or other types of state programs, which require payroll tax contributions by the employee and/or the company.  

4. Expense Reimbursement

Some states require employers to reimburse employees for necessary expenses incurred at the employer’s direction while working remotely.  

Best Practices for Managing Multi-State Employees

Here are some tips to avoid problems when dealing with employees in multiple states: 

Be sure you are properly registering your business in each state that you have employees.  

Overlooking tax implications for state or local tax requirements in payroll processing can result in tax compliance issues for both the company and employees.

Don’t neglect employee engagement.

Remote employees can feel disconnected if not included in company activities or decision-making processes about items that may affect their work. Foster a sense of belonging and engagement through virtual team-building activities and involvement in company initiatives. 

Time zone differences can make coordinating meeting times difficult when employees are spread across regions.

A good solution is to establish core hours for the entire company to ensure employees in different locations are working common hours for at least a portion of the day.   

Be sure you’re not using too many communication platforms.

This can create confusion and hinder streamlined information sharing. Create a centralized communication hub, such as an intranet or team collaboration software, to share important information, updates, and announcements. Also, use targeted messages for specific audiences when necessary. 

Train managers how to manage at a distance and avoid remote work bias.

Now that remote work is more common, we need to rethink how we handle career paths for remote employees and avoid unfair remote work bias. Teach your managers to cultivate, manage and lead team members who are remote and create a career succession path for them.