Smaller companies may choose to avoid certain states for a variety of reasons. The most common are labor laws, taxes and compliance, geography. Sometimes you will also see companies nixing states for political reasons (like they refuse to hire in Texas right now).
Each state sets laws related to fair employment and workplace safety. In most cases, state laws offer more protections than the federal ones. Contact your state department of labor to learn about the labor laws in your state.
If you work for an employer based in a different state, your rights as a remote worker are generally determined by the laws in the state where you reside.
It's important to understand the legal requirements for remote employees. San Francisco, California, requires businesses with remote employees working from home in San Francisco to obtain a Business Registration Certificate.
Like nearly every state, California has a law providing that California labor laws will apply to workers if most of the work is performed in California. California also has a law that says that, where employees perform work in multiple states, then California labor laws will apply if the employees are based in ...
Out-Of-State Hiring Requirements Job applications must comply with all relevant federal, state, and local laws. You must also follow each state's law when it comes to: Background checks. Application questions about criminal histories.
Shannon Anderson, MBA, SHRM-CP Know the State's Employment Laws. Understand Income Tax Withholding. Establish a Legal Business Presence. Create a Comprehensive Employment Agreement. Maintain Compliance with California Laws. Define Remote Work Policies. Review Workers' Compensation Coverage. Stay Informed About Legal Changes.
Legal implications of geographical discrimination Employers can impose any hiring requirements they like as long as they are not discriminatory by law. For instance, many government entities require that their employees live within the jurisdiction's boundaries.
When you're hiring someone who lives out of state, you are obligated to comply with the state employment laws where your new employee works. For instance, if you're a company based in Ohio that hires a developer in California, your new employee is protected by California's employment laws.