Accessibility LinkedIn Facebook Instagram Email ABOUT OUR TEAM AREAS OF PRACTICE NEWS JOIN US CONTACT Previous Next View Larger Image Can I pay employees less if they work remotely? October 19th, 2021|Employment, Featured Updates BY EVYN PERRY Many employees have found working from home beneficial for reasons such as flexibility with childcare, a dislike for the traditional 8 a.m. to 5 p.m. workday, an opportunity to relocate to a city that is closer to family, a lower cost of living, or the ability to save money and time on things like commuting and dry cleaning. Further, many employers are wondering if they can benefit from a remote workforce by paying employees less. Google is reducing an employee’s pay if he or she is working from a remote location with a lower cost of living than the original job location, while JP Morgan said employees based out of their headquarters must work in the office to earn their full salaries. On paper, reducing pay for remote employees due to a cost-of-living analysis makes sense for employers. However, it can cause several issues: 1. Legal Ramifications. A New York Times survey found that about 66% of women are responsible for childcare. Based on those numbers, it is possible female employees would prefer remote work to have flexibility with childcare. If a woman is being paid less than her male counterparts for doing the exact same job, the employer could be susceptible to equal pay act or gender discrimination lawsuits. Also, regardless of gender, an employee could feel slighted if he or she remains productive while working from home but is financially penalized for his or her remote work status. This puts employers at risk for wage and hour lawsuits. 2. Culture Consequences. Employers are saving costs with employees working remote from minor savings such as less money spent on breakroom coffee, paper, and office lunches to big savings from reduced or eliminated expenses for travel and commercial space. These cost-saving benefits to employers may be viewed negatively by an employee whose salary is reduced for working remotely. Employers are now faced with asking themselves, “How would lowering pay for remote employees affect my company’s culture?” The effects of the pandemic on the workforce are still in their infancy and only time will tell whether paying remote employees less is a safe bet. Along with contacting an employment attorney, businesses should consider the practical ramifications before making that decision. Please contact AKC law at 402.392.1250 if you would like to speak with one of our employment attorneys. Share this story on the following platforms Facebook Twitter Reddit LinkedIn Tumblr Pinterest Email Search for: Categories Categories Select Category Awards & Honors (10) Business (39) Constructions (1) Employment (36) Energy Law (5) Estate Planning (26) Featured Updates (87) Franchise (6) General (16) Litigation (6) Real Estate (9) Special Needs Trusts (SNT) (12) Uncategorized (1) Recent Posts OSHA Emergency Temporary Standard on Vaccination and Testing Just Released! Our Fall Newsletter Copyrighting “Works” Leaving a Legacy: Multigenerational Estate Planning To Litigate or Settle? Archives November 2021 October 2021 September 2021 July 2021 April 2021 January 2021 December 2020 November 2020 October 2020 September 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 Abrahams Kaslow & Cassman LLP 8712 West Dodge Road, Suite 300 Omaha, Nebraska 68114 Phone 402.392.1250 Fax 402.392.0816 Hours Mon-Fri 8am to 5pm The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established. © Copyright 2019 - 2021 Abrahams Kaslow & Cassman LLP | ALL RIGHTS RESERVED | 402.392.1250 Email Us