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Do You Need a New Employee Handbook for Remote Employees in Another State?

September 3, 2025

If you’ve just hired a remote employee who will be working from a different state, you may be wondering whether you need to create a brand-new remote employee handbook. In most cases, you don’t need an entirely separate handbook, but you should review and update your existing one to ensure compliance with multi-state employment laws.

When employees work remotely from another state, your company must follow the employment laws of the state where the employee performs their work, not just where your business is based. These regulations can vary widely and may affect your policies on:

  • Minimum wage and overtime requirements
  • Meal and rest break entitlements
  • Paid sick leave, family leave, and parental leave policies
  • Workplace safety and reporting obligations
  • Anti-discrimination and harassment protections
  • Pay frequency and paycheck delivery methods
  • Final paycheck rules when employment ends
  • State-specific holiday and vacation laws
  • Workers’ compensation and disability coverage requirements
  • Non-compete and confidentiality agreements

Because multi-state employment often involves navigating different rules and regulations, failing to update your remote employee handbook can lead to compliance issues, legal disputes, or even costly penalties. That’s why it’s essential to review your policies carefully and make necessary adjustments.

For best results, consider creating an addendum or state-specific supplement to your existing handbook instead of rewriting the entire document. Partnering with an HR professional or employment law expert can help ensure you’re fully compliant with state and federal requirements.

By keeping your remote employee handbook updated and aligned with multi-state employment regulations, you’ll protect your business, support your remote workforce, and reduce legal risks — no matter where your employees are located.

Contact PBS PEO if you need help updating your employee handbook.

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