Remote work and liability risks

Nov 8, 2023 | Uncategorized

Half-faced portrait of concentrated serious confident handsome sTelecommuting has definitely become a part of our normal way of doing business even if it has yet to become the traditional way of doing business. There are still some growing pains associated with this new norm.

Even in the construction industry, where the bulk of job duties are “hands-on,” remote work continues to be used in various ways. Yet allowing employees to do some or all of their work at home can expose a company to new risks. That’s why we wanted to share with you some great ways companies can better manage the liability risks of remote workers:

Create a telecommuting policy. Setting clear work-at-home guidelines and communicating them to employees can help prevent misunderstandings. Make it clear that you have the right to rescind their work-from-home privileges at any time and for any reason. Have all employees review and acknowledge your company’s telecommuting policy.

Re-evaluate your insurance coverage. Make sure your insurance program effectively addresses the unique risks of having some of your employees working remotely.

Make sure employees are using secure Wi-Fi. All of your employees should be using private and secured Wi-Fi networks while working remotely. Using an unsecured network — public Wi-Fi — can put your company’s private information at risk. Require anyone who uses public Wi-Fi to use a Virtual Private Network (VPN), which keeps their web browsing secure.

Make sure employees are using devices that are secure with up-to-date firewalls and anti-virus software. This applies to laptops, tablets and smartphones. It’s your responsibility to keep your customer and client information safe.

Use secure virtual meeting rooms. Make sure that private conversations and presentations cannot be monitored by unauthorized third parties.
Make sure you’re complying with federal wage and hour rules. To avoid violations under the Fair Labor Standards Act (FLSA), employers should require non-exempt employees working from home to record the time they work each day and stick to the hours they should be working each day. Non-exempt employees are entitled to overtime pay whether they are working at your company’s facility or at home, so it’s important that employees know they must adhere to their normal working hours and that they are prohibited from working additional hours without your approval.

Make sure you’re classifying workers correctly for workers’ compensation insurance. When employees switch to working from home, some workers’ compensation insurers may want to change classification codes. As an employer, it’s important to know that you could potentially be held liable if an employee is hurt on the job, and employees may be eligible for workers’ compensation if they are hurt while working at home.

Remote work in the construction industry is not as prevalent as in some other sectors, primarily due to the nature of the work involved. Construction projects typically require physical labor and on-site coordination, making it challenging to completely replace in-person work with remote alternatives. However, certain aspects of the construction industry will continue to incorporate remote work to varying degrees.