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Hiring Out-of-State Employees to Expand Your Labor Pool Isn’t as Easy as it Sounds

By October 12, 2021December 16th, 2022Recruiting

Happy woman working remotelyIn today’s robust labor market, it’s tempting to draw in new employees from across state lines. After all, the pandemic has shown us that many jobs can be performed remotely just as easily as in the office.

However, having a workforce based in multiple states is not as easy as it sounds. There are variances in labor laws, differences in payroll tax requirements, and other factors to consider.

So, what should you take into account if you’re planning to give your business full work-from-home capabilities with employees outside your business’s domicile?

  • Different states follow different minimum wage laws. Some states are the same as the federal minimum wage; some are higher, some are lower, and some have special minimum wage requirements. Minimum wages become even more complex for tipped employees. The Department of Labor provides more complete information on minimum wages, and a competent payroll provider like MarathonHR can help you comply with these requirements.
  • States also vary in their mandates for employee workdays. There are differences in Minimum Paid Rest Periods and Minimum Meal Periods.
  • Rules vary by state regarding payday frequency and payroll taxes. Again, a payroll provider who is experienced in working with employers with multi-state employees can help you remain compliant.
  • Posting requirements vary by state. Employers are required to post certain workplace notices like the OSHA Form 300A, as one example. Your payroll and insurance providers can guide you on compliance with workplace notices.
  • Business incorporation guidelines and fees vary by state. You’ll want to be aware of all the expenses and fees associated with operating in a new state before you start hiring employees in that state, as well as all state agencies that may require notification (Secretary of State, Dept of Revenue, Dept of Labor, or any other state specific agency).

In today’s labor market, good employees can be hard to find. So, if you’ve found excellent candidates in other states, you can make it work. It’s simply wise to be aware of the potential complexities and get the right support. MarathonHR stands ready to help you navigate these requirements.

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