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DOL clarifies FLSA pay requirements for remote employees

September 02, 2020 / Ryan Golden

Employers must pay employees who work remotely or who telework for all hours worked of which employers either know or have reason to believe were performed, even if they have a rule against doing such work, the U.S. Department of Labor's (DOL) Wage and Hour Division said in a Field Assistance Bulletin published Aug. 24. The agency noted that an employer's obligation to pay employees under the Fair Labor Standards Act is based on both "actual knowledge" or "constructive knowledge" of work. The former describes knowledge of regularly scheduled hours via work schedules, employee reports or other notifications, while the latter may be acquired through "reasonable diligence," such as "a reasonable process for an employee to report uncompensated work time," DOL said. "However, if an employee fails to report unscheduled hours worked through such a procedure, the employer is generally not required to investigate further to uncover unreported...