Advances in technology allow employees to work from home more easily, an arrangement called telecommuting. With the help of the Internet, many workers can do the same job at home as they would in an office, offering greater flexibility to workers and cost savings to employers. However, certain laws apply when the work-at-home employment arrangement is ongoing rather than temporary.
"At-will" laws apply to employment in every state but Montana. Unless you work in that state, your employer can fire you, demote you, cut your pay, or lay you off at any time and for almost any reason. The only restriction is that the reason can't be based on discriminatory factors like your age, sex, race or disability. If you have an agreement with your employer that allows you to work from home, this doesn't override at-will employment laws. Working from home is not the same as being an independent contractor. You're still considered an employee, and your employer controls the work you do.
Federal law requires employers to take certain steps to allow disabled workers to do their jobs just as well as other workers, or to accommodate their disabilities. The Equal Employment Opportunity Commission, which oversees issues of workplace discrimination, says that allowing disabled employees to work from home is an "accommodation." So a disabled employee can request a work-from-home arrangement from their employer if it's necessary for the employee to perform the job. Under the law, the employer must agree unless doing so would cause undue hardship.
Some employees who work from home can claim tax deductions related to their home workspace. Typically, a disabled worker would not be able to claim a home office deduction because the arrangement benefits the worker, not necessarily the employer. But if you're working from home because your employer lacks sufficient office space for you to work at the employer's business location, telecommuting benefits your employer. In this situation, the costs associated with your home office are usually tax-deductible.
If you use a home office solely for business purposes, you might qualify for the simplified home office deduction. Consult an accountant or tax attorney for questions about specific deductions.
It's a good idea to get any work-at-home agreement in writing. Doing so protects both the employer and the employee. The agreement should state that the employee is still obligated to follow business rules and codes of conduct. It should state exactly what work the employee is responsible for producing each pay period, and whether the employee is supposed to be on call during certain hours. If the employee is taking home business equipment, such as a computer, the agreement should address what happens if the equipment is lost, stolen, or damaged.
A common mistake many employers make is to misclassify bona fide work-from-home employees as independent contractors. Employers who misclassify their employees, whether out of ignorance of the law or to save on taxes, are subject to substantial penalties.
If you believe you've been misclassified, or if you have other questions about your rights and responsibilities as a telecommuter, contact an employment lawyer for advice specific to your situation.
