Remote Work Contracts: Key Clauses You Need to Understand

Remote Work Introduces Unique Contract Issues

Whether you are negotiating a fully remote position or a hybrid arrangement, your employment agreement may include terms that do not appear in traditional office-based contracts. Understanding these clauses helps you avoid surprises.

Work Location and Schedule

• Designated work location: Some contracts specify where you must work from (home address, specific state, or country). Moving to a different state without approval could create tax and compliance issues.
• Schedule expectations: Is the role truly flexible, or are specific hours required? Time zone requirements should be explicit.
• Right to recall: Can the employer require you to return to the office? Look for clauses that allow the company to change the remote arrangement with limited notice.

Expenses and Equipment

• Equipment provided: Does the employer provide a laptop, monitor, and other equipment? Who owns it?
• Home office stipend: Some companies offer a monthly stipend or one-time allowance for home office setup.
• Internet and utilities: Are these reimbursed? Several states (including California and Illinois) require employers to reimburse necessary business expenses.
• Return of equipment: What happens to company equipment when you leave?

Monitoring and Privacy

• Surveillance software: Some employers install monitoring tools on company devices. The contract may require consent to keystroke logging, screenshot capture, or activity tracking.
• Video requirements: Are you required to keep your camera on during meetings? Can the employer record calls?
• Personal device policies: If you use personal devices for work (BYOD), understand what access the employer has.

Multi-State and Tax Issues

• State tax obligations: Working remotely in a different state than your employer can create tax nexus issues for both you and the company.
• Employment law jurisdiction: Which state's employment laws apply? This affects non-compete enforceability, wage and hour rules, and leave requirements.
• Governing law clause: Pay close attention to which state's law governs your agreement.

Red Flags

• Right-to-recall clause with no notice period or relocation assistance
• Invasive monitoring requirements without clear boundaries
• No expense reimbursement in a state that requires it
• Governing law from a state unfavorable to employees while you work in a more protective state

When to Consult a Lawyer

Consider consulting an employment attorney if your remote work contract involves multi-state tax implications, if the monitoring provisions are extensive, or if the employer wants to change your remote arrangement after hire.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.