COVID-19 & Your Business: Frequent Questions

How should employers compensate employees who must telework due to COVID-19 related reasons?  (29 CFR § 826.10)?

The Department of Labor regulations clarify that telework is no less work than if it were performed at an employer’s worksite. As such, employees who telework for COVID-19 related reasons must record, and be compensated for, all hours actually worked. An employer does not have to compensate employees for unreported hours while they are teleworking due to COVID-19 reasons, so long as the employer did not know, and should not have known, about such telework.

The DOL encourages employers to be flexible in allowing employees to telework. As a result, the Department has said that employers are not required to count as hours worked all time between the first and last principal activity performed by an employee teleworking for COVID-19 related reasons. This rule incentivizes employers to allow more employees to telework. That being said, an employer must compensate an employee for all hours actually worked and reported by the employee or that the employer knew or should have known were worked by the employee even if not reported.

Last updated June 22

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