Workers’ Compensation and the Teleworker

As telecommuting increases your obligation to compensate employees for work-related injuries does not decrease.

An increasing number of employees are teleworkers these days.

In a recent survey, an overwhelming majority (86 percent) of teleworkers reported being more productive, with lower stress levels and a better balance between work and home life. Employers that allow telecommuting enjoy increased employee loyalty and lower costs.

Why You Still Need Workers’ Comp
Despite the benefits, telecommuting does have some drawbacks. Although the risk of injury in a home office may be far lower than in factories, mines and mills, teleworkers are as likely as other office workers to suffer from back injuries and repetitive strain problems. They also face other office hazards, such as trip-and-fall accidents, along with risk of injury from fire if they lack an adequate electrical system, or if they don’t have a smoke detector or fire extinguisher nearby.

Your obligation to compensate employees for work-related injuries and illnesses applies no matter where they work. Those who permanently work abroad might have coverage under other laws. In Texas, employers don’t need to carry workers’ comp insurance, but state law limits the liability of an employer who carries it or who self-insures. Nonsubscribers lose several key legal defenses and can face high damage awards if an injured employee can prove in court that the employer was negligent in any way.

Employers cannot simply declare someone an independent contractor to get out of paying workers’ comp or employment taxes. The Internal Revenue Service and state tax authorities have very strict rules for what constitutes an independent contractor. For details, click here. 

Identifying the Risk
Requiring inspections of teleworkers’ home offices seems intrusive, and may actually increase an employer’s liability if an injury later occurs. However, you can require employees to self-certify the safety of their workspaces. The U.S. Office of Personnel Management offers a sample self-certification safety checklist for home-based teleworkers, to be completed by the teleworker. 

Many teleworkers also face a risk of repetitive stress injuries (RSIs) due to heavy computer use. Although you have no legal obligation to provide ergonomic training or equipment, it’s a good idea. RSIs can be painful and disabling, causing lost time and productivity. Providing properly fitted equipment and training can protect your valued employees at relatively low cost.