Hybrid and WFH working arrangements most definitely offer businesses a broader talent pool in certain industries. White collar businesses with office workers who can perform services outside a traditional work location benefit the most from this trend. Employers can recruit and hire from outside the usual commuting radius, considering candidates residing in other geographic areas and even previously untapped local talent that wants to avoid a daily commute.
Employees working remotely will create additional compliance challenges. Regulatory requirements may include registering the employer to do business where their employees perform services and obtaining a business license in other locations. Employers may need assistance setting up applicable payroll taxes and income tax withholdings complying with employment laws and regulations where the services are rendered.
There may be additional ergonomic needs for work from home arrangements, such as standing desks, proper chairs and computer accessories, even when such items are available in a central office location. Privacy concerns and protection of trade secrets may require additional precautions, including software and security measures. A wider range of applicable employment laws may impact company-wide personnel policies, as employers set standards of expected work conduct. Employers should consider these requirements prior to hiring, as requirements may not be economically feasible.
California and the Los Angeles area where I practice offers a broad talent pool to businesses, given the sheer numbers of people in the area. However, the cost of living is high, with many workers engaged in long commutes through congested areas. Wage rates are elevated compared to other parts of the country: hiring remote workers outside of the immediate urban area may help lower payroll costs and reduce an employer’s carbon impact.
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