CCH Says High Gas Prices May Cause Employers to Rethink Telecommuting, Compressed...

CCH Says High Gas Prices May Cause Employers to Rethink Telecommuting,
Compressed Work Weeks

RIVERWOODS, Ill., Aug. 8 /PRNewswire/ -- With gasoline costs taking a big
bite out of employees' paychecks, companies may want to take a second look at
where and when employees work, notes CCH, a leading provider of human
resources information and software and a part of Wolters Kluwer Law & Business
(hr.cch.com). Programs such as telecommuting and compressed work weeks can be
effective ways to attract new hires and retain current employees under any
circumstances, and may be particularly effective in easing some of the
financial pressures employees are feeling today. Employers, however, also
need to be aware of possible legal concerns that may go along with these more
innovative practices.
"Currently, over 22 million U.S. workers telecommute at least once a week
and that number will continue to rise due to high gas prices," said CCH
Employment Law Analyst Brett Gorovsky, JD. "Telecommuting offers a win-win
solution by reducing the amount of money employees spend on transportation
costs, while at the same time allowing employers to reduce costs of their
own."
Companies adopting telecommuting programs can achieve cost savings in
total office overhead, while the positive effects of increased productivity,
reduced turnover and improved morale contribute further to the bottom line.
According to a CCH nationwide survey conducted by Harris Interactive, 53
percent of U.S. companies offer telecommuting programs.
The federal government could be the next major employer to make
telecommuting the norm, rather than the exception. In June, the House of
Representatives passed the Telework Improvements Act of 2008. The legislation
would help improve the cost-efficiency of the federal government and the
lives of families by allowing federal agency employees to work from home on a
full- or part-time basis depending on eligibility. It mandates that the heads
of each federal agency establish a policy under which "eligible" employees may
be authorized to telecommute. The Senate Homeland Security and Governmental
Affairs Committee has already approved a counterpart bill, the Telework
Enhancement Act of 2008.
Companies Must Address Concerns
Companies thinking about starting a telecommuting program should be aware
of possible legal concerns. Gorovsky identified disability issues, wage and
hour issues and safety concerns as three areas that employers will want to
consider, and address, in formal telecommuting policies.
"The Americans with Disabilities Act of 1990 does not require an employer
to offer a telecommuting program to all employees, but if an employer does
offer such a program, it must allow employees with disabilities an equal
opportunity to participate," Gorovsky said. "While courts are split on the
matter, the ADA's reasonable accommodation obligation, which includes
modifying workplace policies, might require an employer to waive certain
eligibility requirements for someone with a disability who needs to work at
home, even if the employee's presence in the workplace is an essential
function of their job."
Wage and Hour Issues
Employees working from home are subject to the same wage and hour laws as
employees working onsite. Nonexempt employees' hours must be recorded by an
employer regardless of where the work is performed and the employer must pay
employees for all hours they "suffered or permitted to work." Overtime is due
when hours exceed 40 in any work week regardless of whether the employer
approves the extra hours worked.
"Concerns have been raised as to the employer's ability to sufficiently
monitor its employees' hours worked," Gorovsky observed. "This is certainly
an area that should be addressed in a company's telecommuting policy."
Safety
The federal Occupational Safety and Health Act (OSHA) requires private
employers to provide a place of employment that is free from recognized
hazards. A February 2000 OSHA policy directive stated that OSHA would not
inspect home offices, hold employers liable for the safety of telecommuters or
require employers to inspect home workplaces.
"Nevertheless, some employers remain concerned that this internal policy
could be reversed in the future, exposing employers to workplace safety
violations and requiring them to complete costly home office inspections,"
Gorovsky warned. "Some employers are proactively offering telecommuters
guidance on home office safety and design, and providing them with ergonomic
furniture."
Generally, work-related injuries are covered under state workers'
compensation programs, as long as the injury occurs in the "course of
employment." There could be increased fraud and abuse in this area of the law
because the telecommuting employee both works and lives at home. It might be
difficult to determine whether the telecommuting employee's injury, which
occurred in their home, actually occurred in the "course of employment."
"So far, the courts have not tried to expand employers' liability to cover
all the in-home injuries of telecommuters, even when they aren't directly
job-related, but this is an area to watch," Gorovsky said.
Compressed Work Weeks Can Reduce Commutes
Telecommuting is not the only option employers can implement to help with
high gas prices. Employers can also encourage the use of public
transportation, provide carpooling and financial assistance or offer a
compressed work week.
A compressed work week is one in which a full-time job is completed in
fewer than five days by increasing the hours worked each day. An example of
this is the four-day work week. If this option is chosen, the extra "day off"
typically is staggered (e.g., half of the employees have Monday off and the
other half have Friday off) so that an employer's operations are not
completely shut down on any single work day.
According to a CCH survey, 45 percent of employers offered a compressed
work week, option.
"In some cases, though, a company may allow employees to work nine hours
Monday through Thursday and then take off after four hours of work on Friday,"
Gorovsky observed. "Such a schedule may be attractive for other reasons, but
it does not address commuting costs, since employees still make five round
trips each week."
Utah Makes Four-day Week the Norm
In June, Utah Governor Jon Huntsman announced that he was imposing a
four-day work week on some 17,000 state employees. Called the "Working 4 Utah
Initiative," Huntsman's order extends state government service hours from 7
a.m. to 6 p.m., Monday through Thursday beginning the first week of August.
State administrative offices will be closed on Fridays but essential public
services will remain open that already run on extended hours and during the
weekends.
"As we go forward with this initiative, we will conserve energy, save
money, improve our air quality and enhance customer service," Governor
Huntsman has said.
For private businesses, the decision to go to a four-day week is largely a
practical one: even with staggered days off, can the company function
effectively? In some cases, however, legal considerations may come into play.
"In California, workers must agree to a work day longer than eight hours
through an election process," Gorovsky noted. "In addition, some state laws
regarding child labor may preclude young employees from working more than
eight hours a day. Companies would do well to check their state's wages and
hours rules."
About Wolters Kluwer Law & Business
Wolters Kluwer Law & Business is a leading provider of research products
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professionals, as well as casebooks and study aids for law students. Its major
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Loislaw. Its markets include law firms, law schools, corporate counsel and
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Business, a unit of Wolters Kluwer, is based in New York City and Riverwoods,
Ill. Wolters Kluwer is a leading global information services and publishing
company.
SOURCE Wolters Kluwer Law & Business

Leslie Bonacum, +1-847-267-7153, mediahelp@cch.com, or Brenda Au,
+1-847-267-2046, brenda.au@wolterskluwer.com, both of Wolters Kluwer Law &
Business