A remote worker isn’t a special category of employee. I’ve seen employers treat remote roles like loopholes — assuming the rules don’t apply because the work happens from home. That’s not how it works. If anything, remote setups require more vigilance to stay compliant.
Let’s break down how overtime pay applies to remote workers — and where most employers get it wrong.
Remote Employees Are Covered by the Same Overtime Rules
Under both federal law (FLSA) and the New York Labor Law, non-exempt employees — whether they work in an office or from their kitchen table — must be paid:
- 1.5x their regular hourly rate
- For all hours worked over 40 per workweek
There’s no remote work exception. If someone’s hourly, or salaried but non-exempt, overtime is still owed.
What Triggers Overtime Liability for Remote Workers?
Here’s where I see problems most often:
- No time-tracking system for remote staff
- Salaried remote workers who don’t meet the exemption tests
- “Always-on” culture — emails, calls, messages outside business hours that count as work
- Off-the-clock requests from supervisors — “real quick” tasks that add up
If an employee works 47 hours from home but only gets paid for 40, you’re exposed.
Remote Employee Misclassification Example
A customer support rep in Yonkers is paid $900/week to work from home. She’s called “exempt,” but:
- She doesn’t manage anyone
- Doesn’t meet the administrative exemption
- Doesn’t meet the salary threshold for NYC ($1,237.50/week)
She works 48 hours/week. That’s 8 hours of unpaid overtime, every week.
Over a year, that’s $13,000+ in damages — not counting interest or penalties.
Employers Must Track Remote Hours Accurately
There’s no gray area here: you must track hours worked, even for remote staff. And if you can’t prove hours weren’t worked, the law often sides with the employee’s word.
Set clear expectations. Use timesheets or digital tracking. And assume every extra task — call, message, spreadsheet — might count as compensable time.
What I Tell Employers and Remote Workers
Whether you’re running a team from a WeWork or managing freelancers from your living room, overtime law applies the same way.
If you’re a remote employee working long hours without overtime pay, you might be misclassified. If you’re an employer unsure about how your policies stack up, it’s worth getting them reviewed now — before someone files a claim.
Our wage and hour law firm works with both businesses and workers to sort this out — quickly and clearly.
Still have questions? Contact us — The Samuel Law Firm can help you make sense of remote work rules before they turn into risk.
