Employment Law Issues to Be Aware of When Using Remote Workers

b2ap3_thumbnail_attn-jaclyn_20220817-202310_1.jpgBy: Attorney Jaclyn Kallie

The use of remote work has increased considerably since the onset of the COVID-19 pandemic. More and more people have been able to work from home, and the ease of online communications has allowed employers to hire people located in other states or even other countries. The growing use of remote work has changed the way many businesses operate, and it has opened up a range of opportunities for both employers and employees. However, it is critical for employers who utilize remote workers to understand the employment laws and regulations that may apply in these situations. Here are some critical legal issues to be aware of with respect to remote employment.

Applicable Law

Knowing what law applies to remote employees is critical to understanding the implications of this business decision. Generally, the default rule is the state where the employee resides is the applicable law. This applies to laws regarding wage and hour, employee injuries and employer data protection, among others. This distinction is particularly important where the laws differ significantly between the home state of the business where a majority of its workforce may reside and that of a single remote employee. For example, where a Wisconsin based company hires a remote employee who lives and works in California, the business must be aware of the differences in various employment laws between the two states. One such distinction relates to restrictive covenants: in California restrictive covenants are virtually unenforceable whereas in Wisconsin they are enforceable. By understanding the differing laws ahead of time, employers can avoid claims for violating them later on.

Worker Classification

It is important for employers to ensure that workers are classified correctly as either employees or independent contractors. As discussed above, different state laws may apply depending on where a person is located, and their classification may depend on whether they have established their own independent business, whether they have control over the hours they work, and whether their work is substantially different from an employer’s standard activities. By classifying workers correctly, employers can avoid tax penalties and other related issues.

Wage and Hour Compliance 

The Fair Labor Standards Act (FLSA) has established laws addressing minimum wage, overtime pay, and other issues that may affect employees. For non-exempt employees, employers are required to pay at least the federal minimum wage for all hours worked up to 40 hours per week and at least 1.5 times an employee’s regular rate of pay for all hours worked over 40 hours per week. For hourly employees who work remotely, employers must ensure that these requirements are met. Employers should develop clear and robust policies and procedures that outline the schedules their remote employees must follow and must monitor their remote employees to ensure those policies and procedures are followed. Failure to take these actions ahead of time could result in liability for uncompensated work time. 

Employee Leave

Employers who utilize remote workers must understand the employment laws and regulations that apply to employee leave. The Family Medical Leave Act (FMLA) permits employees to take up to 12 weeks of unpaid leave each year for medical purposes or family-related reasons. Employers must provide this leave regardless of whether the employee is working remotely or in an office setting. Additionally, some states have their own sick leave laws which may require employers to provide a certain amount of paid or unpaid time off for employees who work the required number of hours. Employers should establish clear policies regarding how remote employees can use any existing vacation days or other types of paid time off. By understanding employment law issues related to leave for remote workers, employers can ensure compliance and protect their business from potential liabilities.

Employment Taxes 

Employers must withhold income taxes from each employee’s paycheck based on their wages and other compensation paid throughout the year. However, state income taxes may apply in the state where the employee lives, and other taxes may need to be paid in the state where the employer is located. In many cases, states have reciprocity agreements that allow employers to pay taxes for employees in a single state. Understanding the tax laws that apply to employees in specific states can be crucial for ensuring that employers will not be subject to tax penalties.

Employment Rights & Benefits 

Finally, employers should be aware of all relevant rights and benefits associated with employing remote workers in order to avoid potential disputes down the line. This includes benefits or entitlements such as health insurance or pension contributions that may be required by law or company policy. Additionally, employers should be sure to understand whether they are required to provide reimbursement for employee expenses, such as costs related to communication equipment and software needed for them to do their jobs effectively.

Contact Our Milwaukee Employment Lawyers

When it comes to employing remote workers, there are several important employment law issues that employers must consider in order to ensure compliance with federal and state laws as well as company policies and procedures. It is essential for businesses to take the time before hiring remote staff members to develop written remote work policies, procedures and agreements, to ensure that they can remain compliant while providing an excellent working environment for all workers. If you have any questions about the legal issues that may need to be addressed when hiring remote employees, contact the Milwaukee, WI employment law attorneys at GRGB Law, LLP by calling 414-271-1440.

Sources:

https://www.adp.com/spark/articles/2022/06/implications-of-work-from-anywhere-when-remote-workers-cross-state-lines.aspx

Employment Laws for Remote Employees: 18 Important Things to Know for Compliance

https://www.businessmanagementdaily.com/68241/which-state-laws-apply-to-remote-employees


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Our Top 10 Blogs for 2022 Covered Criminal Cases, Weapons Charges, and More

milwaukee personal injury lawyerBy: Attorney Jason Luczak

Here at GRGB Law, our attorneys provide representation for clients in multiple types of legal matters, including family law, business law, civil litigation, criminal defense, personal injury, and much more.  We regularly publish blogs covering a variety of topics related to these legal fields, and we strive to keep our clients and the readers of our blog updated on legal developments and issues that can affect their lives. We wanted to highlight the blogs that visitors to our website read the most during 2022:

  1. Circumstantial vs. Direct Evidence in Wisconsin Criminal Cases – Criminal prosecutors may rely on different types of evidence as they attempt to demonstrate beyond a reasonable doubt that a person committed an offense. In this blog, we look at the different types of evidence that may be used. Our attorneys ensure that our clients are prepared to address the evidence in their cases, and we fight to protect their rights when defending against criminal charges.

  2. What You Need to Know About Open Carrying a Gun in Wisconsin – In recent years, much attention has been paid to gun laws and regulations in the United States. In this blog, we provide an overview of the rights that people in Wisconsin have to openly carry firearms in public.

  3. Child Abuse and Neglect in Wisconsin: Types of Charges and Convictions – We look at the different types of criminal charges that parents or others may face in situations where they are accused of intentionally causing harm to children or allowing harm to occur through negligence.

  4. Applying for a Wisconsin Liquor License for Your Business – This blog examines the types of liquor licenses that are available in Wisconsin and the requirements a business owner will need to meet to be able to sell or serve alcohol to patrons.

  5. Wisconsin Laws and Policies for Juvenile Offenders Charged As Adults – We look at Wisconsin’s juvenile justice laws, situations where minors may face criminal charges in adult court, and efforts to reform the juvenile justice system.

  6. Sudden Infant Death Syndrome and the Charges Parents May Face – For parents, nothing is worse to contemplate than the death of their child. Unfortunately, some parents of infants who have passed away unexpectedly have been charged with manslaughter or similar crimes. We look at what parents can do to protect themselves in these difficult situations.

  7. Understanding Sexual Assault Charges Under Wisconsin Law – Anyone who is accused of a sex crime will need to understand the specific charges they may face, the potential penalties of a conviction, and the defense strategies that may be available. Our blog provides information about these types of charges, and we can represent defendants who are facing charges of sexual assault.

  8. What Happens if Your Child is Subject to a CHIPS Action? – Juvenile courts may have jurisdiction in a case involving a child in need of protective services (CHIPS). This blog looks at how these types of cases are handled and the options that parents may have to protect their parental rights.

  9. What Types of Battery Charges Can I Face in Wisconsin? – We look at when a person may be charged with simple battery, substantial battery, or aggravated battery and the potential consequences of being convicted of one of these offenses.

  10. Understanding Wisconsin’s Driver’s License Point System – Traffic violations will add points to a Wisconsin driver’s record. This blog looks at the points that are assigned for different offenses and the situations where violations may trigger a driver’s license suspension.

Contact Our Milwaukee, WI Criminal Defense Lawyers

If you have questions about any of the topics detailed above or other issues related to our practice areas, please get in touch with us by calling 414-271-1440. Our Milwaukee family law and personal injury attorneys can help you determine the best ways to address the legal issues you may be facing, and we can provide you with the representation you need to resolve your case successfully.


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New Year’s Resolutions

Q. Like everything else, I’m behind in formulating my New Year’s resolutions. Aside from getting my booster shot, what should I resolve to do in the year ahead?

A. After the ball drops on another year, we often spend the next twelve months dropping balls in all aspects of lives. Even if you finished your list of resolutions, in a few weeks, that list would be buried beneath a pile of paperwork, as the overwhelming demands of practice, multiple deadlines and an endless stream of phone calls monopolize your time.

In a profession that struggles with a higher incidence of depression and anxiety than the population at large, we tell ourselves that “the client comes first” and let everything else suffer.

Contrary to the time-honored adage, clients do not come first. You do.

If you truly want to serve your clients well, scrap the resolutions and start making some firm decisions. You cannot attend to their needs at the expense of everything else. Sleep deprivation and a steady diet of caffeine and anti-depressants won’t make you a better lawyer. The unhealthy, one-dimensional lifestyle that many of us maintain comes with serious consequences and may ultimately harm the very clients we are sworn to help.

Achieving balance takes time — time which cannot be measured in billable hours.

Using 2020 vision, imagine a year in which your practice is but one aspect of a healthy life that includes a proper diet, exercise, family and recreation. If you are overwhelmed at the office, honestly assess your need for support staff, better technology and case management systems, and a more selective approach to incoming business.

As lawyers, we are accustomed to rolling up our sleeves to put in extra hours – maybe even “all-nighters” – to get the job done. That may be necessary on occasion. But it should never become a way of life.

This applies to all of us irrespective of the nature of our practice or the setting in which we work. But achieving balance is particularly challenging for sole practitioners who are accustomed to doing everything themselves.

If you aren’t getting enough sleep, fail to exercise, don’t eat right or spend enough time with family, you won’t be in a position to help anyone after long. Your clients may appreciate your hard work and dedication. But they’ll find plenty of other lawyers to take over once you’re gone.

Your family will miss you, though. Perhaps they miss you already.

Don’t drop the ball.

‘Tis the Season …

Q. My tech client had a huge gift basket delivered to me, with an envelope containing first class tickets for a golf trip to Scotland. May I accept these?

A. Don’t pack the kilt just yet.

As a token of appreciation, the seasonal gift basket is a nice holiday gesture that won’t raise concerns. You may enjoy the edible parts of the basket without fear of repercussions.

The contents of the envelope are harder to swallow. Under Rule 1.8(c) of the Rules of Professional Conduct, an “attorney shall not solicit any substantial gift from a client, including a testamentary gift, or prepare on behalf of a client an instrument giving the attorney or a person related to the attorney any substantial gift unless the attorney or other recipient of the gift is related to the client.”

Given your question, I assume that you did not “solicit” the trip to Scotland. You can go, but the comments following Rule 1.8 warn that such a “substantial gift … may be voidable by the client under the doctrine of undue influence, which treats client gifts as presumptively fraudulent.” Rule 1.8 comment [6]. That alone is frightening.

Expensive gifts are particularly dangerous when acceptance would require the drafting of a will or deed of conveyance. Unless your client also happens to be your father or another close relative, accepting real estate, a share of inheritance, cars or other extraordinary “gifts” may place your license in jeopardy. In such situations, the client must consult with independent counsel before you may accept and, even then, it’s risky.

The trip to Scotland won’t require special drafting or a formal conveyance. But when clients offer substantial gifts, you should still be leery of accepting. This is particularly true if the donor’s generosity exceeds his means. What may be a “substantial” gift from a client selling computers out of his garage may be a small token to a client like Bill Gates. Thus, the client’s financial means may be considered in determining whether your acceptance would be reasonable.

Even if your client can clearly afford it, there may be sound reasons to politely decline the expression of gratitude. Clients that love you at Christmas may not feel the same way a few months later. They may even feel entitled to corresponding generosity in the next billing cycle. And the last thing you need is for a client to change her tune and later accuse you of undue influence or other improper motives in extracting that luxury vacation. If that happens, will you be able to overcome the ominous presumption articulated in the comment to Rule 1.8?

Situations differ. But when you go beyond “tokens” of appreciation, more substantial gifts raise more significant ethical concerns. (You may also have to declare your trip as taxable income.) Thus, when it comes to client gifts, it may be better to give than to receive.

Giving Thanks

Q. We are thankful for the many satisfied clients who have recommended us to their friends, coworkers and relatives. To encourage more referrals, may we send them tokens of our appreciation?

A. Tokens of appreciation to loyal clients are probably fine. Rewarding them for referrals isn’t.

Under Rule 7.2(c) of the Rules of Professional Conduct, an “attorney shall not give anything of value to a person for recommending the attorney’s services.” While other businesses may thrive on a program of incentives for new referrals, you are not soliciting gym memberships, magazine subscriptions or the sale of high-end merchandise. You are offering professional services to clients who require strong legal skills—not marketing savvy.

When you reward your clients with sizable gifts, discounts or kickbacks, they are more likely to recommend your services for the wrong reasons. In banning such incentives, our ethical rules favor a meritocracy in which the best and brightest profit from their legal acumen alone.

By trading tangible incentives for new referrals, we encourage others to lure unsuspecting clients into our firms for reasons other than the quality of our services. And if the incentive is valuable enough, we are arguably sharing our profits with these unlicensed goodwill ambassadors in violation of other provisions.

There is nothing wrong with showing appreciation for those who recommend us on the basis of merit. Wishing our loyal clients and other friends well around the holidays with a gift basket or nice bottle of wine is probably fine. But promoting referrals with a program of valuable incentives undermines our professionalism and violates our code of ethics.

35 Million More Shares in PG&E Stock Sold – What This Means for Fire Victims

On October 31, 2022, the Fire Victim’s Trust announced an additional sale of 35 million shares in PG&E stock at $15.25 per share to provide compensation for victims of the 2015 Butte, 2017 North Bay, and 2018 Camp Fire. This news comes shortly after the Fire Victim’s Trust sold 35 million shares at $13.65 per share in early October.

The Fire Victims Trust, which reviews and values victims’ claims, was established in July 2020 after PG&E went through Chapter 11 bankruptcy. For the fire victims, the bankruptcy had the unfortunate effect of delaying claims, though the delay could have been much longer without the establishment of the Fire Victims Trust. The Trust was set up to ensure the fire victims were paid the largest amount of their damages possible.

To fund payments to the fire victims, the Trust continues to sell portions of the approximately 480 million shares of PG&E stock that were deposited with the Trust as part of the bankruptcy. To date, the Trust has cashed out about 170 million shares. The Trust Agreement does not allow the Trust to issue shares to claimants. It must pay all awards in cash. Therefore, the Trust must eventually sell all the stock it is holding.

As of October 28th, 2022, the Trust has issued determination notices (a statement of the amount to be paid) to 86% of the claimants. The Trust hopes to have issued determination notices to 95% or more of the claimants by the end of the year. After a claimant accepts the determination notice, the Trust pays 45% of the amount of the determination as an initial pro rata payment. To date the Trust has paid out about $5.36 billion to fire victims.

Many fire victims who have already received their initial pro rata payment have asked about when they can expect to receive further pro rata payments. Unfortunately, the Trust has not yet announced when it will make additional payments to the victims following the initial pro rata payment. However, as the Trust issues determination notices to more and more claimants, the Trust should have more clarity as to the total amount to be paid on the victims’ claims. Additionally, as it sells more stock, it will also have a better idea of how much money will be available to pay those claims. As a result, we anticipate that the Trust should be in a position to make further payments to the victims in early 2023. We cannot guarantee that the Trust will make additional payments then, but we believe they should be able to. We will inform all of our clients once it becomes clear when an additional payment will occur.

 

Courting Public Opinion

Q. My client has just been indicted on 13 counts of fraud and every reporter in town has called me for comment. Should I call them back? 

A. Before fielding their questions, ask yourself whether silence is “golden” or “prejudicial.”

Warned against trying cases in the press, many lawyers limit their advocacy to the courtroom. Lest we taint the process, attorneys must refrain from “extrajudicial statements” in the media that they know or reasonably should know will have a “substantial likelihood of materially prejudicing an adjudicative proceeding.”

That hasn’t stopped prosecutors from orchestrating press conferences, issuing press releases and choreographing perp walks. Once they do, your silence isn’t always golden. Beyond the potential to contaminate the jury pool, one-sided news coverage may tarnish your client’s reputation and cause irreparable harm regardless of the ultimate outcome in court. The words “not guilty” won’t magically restore the reputation of clients where years of disparaging stories preceded their exoneration. Indeed, after his acquittal in a high-profile case, one defendant famously asked, “Which office do I go to get my reputation back?”

Your law office isn’t the answer. But, as advocates, we must often play a key role in the “court of public opinion.” Rather than ignore disparaging press accounts, the rules of ethics let us balance the narrative. If we reasonably believe that our comments may be “required to protect a client from the substantial undue prejudicial effect of recent publicity” originating from other sources, we may comment as “necessary to mitigate the recent adverse publicity.”

Taken literally, this narrow exception would muzzle lawyers until after headlines have already impaired the right to a fair trial. But in practice, those who choose their words wisely may mitigate reputational harm while promoting the administration of justice:

➤ Get Client Approval

Before discussing your case with reporters, you must review the advantages and disadvantages with your client. Without your client’s informed consent, you must not reveal any information relating to the representation, regardless of whether it is privileged.

Speak for the Client

Absent rare circumstances, do not let your client speak with the press. Lawyers who have done so often live to regret it, as client comments may be used against them at trial. By speaking on your client’s behalf, you can avoid the pitfalls that may arise from errant or ill-considered statements.

➤ Keep It Simple

When speaking for your client, be careful with what you reveal about the evidence, your strategy and your response to specific allegations. Unlike a court of law, details aren’t as critical in the court of public opinion where short “sound bites” work best. By limiting your comments to what you want the press to print, you will gain more control over the story itself and minimize the risk of confusion. Considering the fact that your adversary, the judge and potential jurors may also read your comments, less is more when it comes to press accounts.

Respect the Reporter’s Role

Reporters aren’t our adversaries. Often, they are kindred spirits. Just as you work to hold prosecutors and other public officials accountable, enterprising journalists may expose abuses of power and enhance government transparency. In cases demanding such scrutiny, the fourth estate may be a powerful ally.

➤ Develop Reporter Rapport

To get a good report, you need good rapport with the reporter.

Some lawyers have tense relationships with the press. Responding to questions with a sterile “no comment,” their reluctance to talk may actually harm client reputations.

The alternative does not require that you reveal case-specific information or answer all questions directly. General comments about the presumption of innocence, your client’s desire to present his case in court, or the need to consider all the evidence may help to counter a rush to judgment. At the very least, they may remind the public that there are two sides to every story.

Even in cases where you cannot comment at all, you may still offer “off the record” guidance to a reporter to clarify issues, focus on more favorable facts and provide insight on your client’s position. So long as you exercise care to establish the parameters of your communication, speaking “on background” and “without attribution” may foster a productive relationship as press coverage continues.

➤ Don’t Be Self-Serving

You may not be in court, but you are still representing a client whose interests come before your own. When speaking to the press, leave your ego or desire for self-promotion out of it. If you do your job well, your dedication to your client’s cause will speak volumes for your professionalism and qualities as counsel.

As lawyers, we are more accustomed to protecting our clients within a courtroom than we are outside of it. But if we act with proper discretion, we may defend our clients in the court of public opinion without tainting proceedings in a court of law.

Ethical “Info Wars”

Q. After his client denied any text messages about this case, defense counsel sent me a thumb drive with hundreds of them, including some attorney-client communications. May I use these?

A. Even at war with the other side, there are ethical rules of engagement.

Before you make any use of these records, you must notify opposing counsel on the nature and extent of information received. The Rules of Professional Conduct require that lawyers promptly notify the sender of any data which they know or have reason to believe was “inadvertently sent.”

Although many of these texts may fall within the scope of discovery, it would appear that some privileged material was mistakenly included. It may be tempting to capitalize on your adversary’s error, but your duty to your client does not entitle you to disregard entirely the rights of others.

In law as in life, errors do occur. With the hasty click of a mouse, emails are occasionally misaddressed, privileged messages may be inadvertently produced, or documents may be accidentally included with information that was intentionally transmitted. If you think you received more than your opponent intended to send, you are ethically obliged to inform opposing counsel so that protective measures may be taken.

To preserve the rights of others, this notice requirement gives senders the opportunity to correct these mistakes. But it does not require that you bow to these efforts, destroy what you received or refrain from using the information. If a motion is filed, the court will ultimately decide whether privileges apply, whether privileges were waived by inadvertent production, or whether you must disgorge some or all of the material received. Naturally, if the sender neglects the privilege and makes no effort to limit your use of this information, later objections are less likely to prevail.

Depending on the circumstances surrounding an inadvertent production, you may volunteer to return documents or to delete electronically stored information unread. But without a court order to the contrary, your decision rests with your exercise of “professional judgment.” Rule 4.4 comment [3].

When there are no rules, we might apply some variation of the Golden Rule to such dilemmas: “Produce unto others what you would have them produce unto you.”

Ethics on Vacation

Q. As we head to the beach for a two-week vacation, my wife and kids want me to leave my cell phone behind so I won’t be distracted with client calls. Is this a good idea?

Legal Ethics on Vacation

A. Taking a well-deserved respite from law practice is a very good idea. The time away will let you decompress, avoid job burnout, and reconnect with the family that you may have neglected during that hectic divorce trial. And, if you don’t want to trigger a divorce of your own, you shouldn’t plan to take your work with you.

Yet, even if you flee the jurisdiction, a lawyer in paradise remains subject to the Rules of Professional Conduct. While we aren’t required to be on call 24/7/365, we are required to “promptly comply with reasonable requests for information.” Most clients can live without us for a couple of weeks, but unless we want to come home to a grievance, a little bit of planning can go a long way to helping your clients relax during your time away.

Set Boundaries — let your clients know when you will be on vacation with limited or unreliable access to email and other means of communication. If they don’t already have your cell phone number, this would not be a good time to give it to them unless there really is an urgent matter that you must address during your time away.

Designate an Attorney to Contact in Your Absence — like medical doctors, we can’t always control when a crisis may require more immediate attention. If you practice in a firm with other lawyers, it will be relatively easy to prepare them on any pressing matters and let them determine the need for your personal attention. If you’re a sole practitioner, a well-trained office assistant may be able to screen the calls to do the same.

Record Vacation Voice Mail Greetings — before you leave, record a voice mail to inform clients that you are out of the office and on vacation. The greeting should let clients know when you will be returning to the office and reassure them that you will return their call promptly thereafter. Your message should leave instructions on whom the client should contact in case of a true emergency. This will help clients with a time line for your return, while setting appropriate boundaries and expectations.

Set Your Out-of-Office Email Message — like your voice mail, those who email you should receive an automatic reply with the same information and instructions. Many lawyers state that they are “out of the office,” but refrain from stating that they will be “on vacation” because it somehow detracts from their aura of dedication to client service. This is nonsense. Let your clients, opposing counsel and others know that you are human and need your time away.

In this day and age, it’s easy to take the office with you wherever you go. That may make it easy to respond to client emergencies, but it makes it harder to recharge your batteries and resist the temptation to check your cell phone and email throughout your trip.

Do I practice what I preach? In younger years, I always took my work with me. Today, I enjoy my time away with minimal interruption. However, when I have a suitable connection, I do check my email twice a day to ensure that I can respond to clients who, for whatever reason, simply cannot wait for my return. Given the nature of my practice, I often encounter lawyers in crisis for whom two weeks away is an eternity. Limiting my calls, I can usually take a moment or two to offer some reassurance that let’s us both relax until my return.

One could say that legal ethics never takes a holiday. But to serve our clients well in the long run, lawyers must do so the right way.