Guest column

Houston expert: 4 questions to ask when hiring employees in other states

Remote workers became a necessity in the pandemic — now it's becoming the norm. Here's how to navigate the remote hiring process. Photo by Edmond Dantès via Pexels

A larger share of employees has found themselves working from home, or at least working remote, than ever before and many continue to do so permanently. As employers actively take steps to ensure a strong showing throughout the economic recovery, the nature of remote work has allowed employers to cast their nets far and wide in search of top-notch talent. Remote work also opened up the option for some existing employees to seize the opportunity to move to their dream locale.

Due to the nature of employment law in the U.S., remote workers spread out in varying states pose a challenge to employers – and most business owners are simply not prepared. However, by asking the right questions, employers can ensure that they are in line with cross-border rules when it comes to the challenges of having employees based in other states.

What are the payroll requirements?

When it comes to hiring remote employees in other states, it is most important to confirm that they will be properly paid. A record of compliance with state-specific payroll laws is critical in the event of a Department of Labor audit. Examples include local and state minimum wage and pay frequency requirements. Other relevant details range from overtime calculations to payroll deductions. If working with a payroll provider, employers should verify that they are set up to pay out-of-state employees.

What are the state-specific labor laws and regulations?

Another caveat of out-of-state remote employees is the requirement of local- and state-specific labor laws and regulations. Regardless of where a company is headquartered, employers are required to abide by regulations in a number of categories. A few employment regulations that may vary by location include leave – both paid and unpaid – as well as employment benefits, workers' compensation and breaks provided.

How to keep up with regulatory changes?

State-by-state employment regulations are frequently changing, and employers can be especially challenged to maintain compliance with each state's evolving labor laws. Before making a remote workforce a more permanent solution, business owners should decide between assuming the responsibility of regulatory compliance through their own research and system or delegating the role to an external partner such as an employment attorney or professional employer organization.

How to ensure the success of remote employees?

Of course, the undertaking of properly hiring remote employees in other states is only worth it if employers take steps to ensure their success. Company culture is critical to onboarding and retaining remote employees. Business owners should look beyond bookkeeping to support new hires who may be miles away from the company headquarters. Gestures such as branded swag bags and personalized video messages from teammates can make remote employees feel welcomed from afar. Virtual mentorship programs also are valuable in the development of virtual team members.

As employers further consider leveraging the remote workforce or the emerging hybrid workplace model, minimizing regulatory headaches at the onset can potentially save time and money should issues arise. By asking about payroll requirements, maintaining compliance with local and state employment regulations and preparing to preserve compliance in the future, business owners can confidently tap into the growing remote workforce with ease.

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Jill Chapman is a senior performance consultant with Insperity,a leading provider of human resources and business performance solutions.

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Building Houston

 
 

This Houston-based SPAC has announced the tech company it plans to merge with. Photo courtesy of Gow Media

A Houston SPAC, or special purpose acquisition company, has announced the company it plans to merge with in the new year.

Beaumont-based Infrared Cameras Holdings Inc., a provider of thermal imaging platforms, and Houston-based SportsMap Tech Acquisition Corp. (NASDAQ: SMAP), a publicly-traded SPAC with $117 million held in trust, announced their agreement for ICI to IPO via SPAC.

Originally announced in the fall of last year, the blank-check company is led by David Gow, CEO and chairman. Gow is also chairman and CEO of Gow Media, which owns digital media outlets SportsMap, CultureMap, and InnovationMap, as well as the SportsMap Radio Network, ESPN 97.5 and 92.5.

The deal will close in the first half of 2023, according to a news release, and the combined company will be renamed Infrared Cameras Holdings Inc. and will be listed on NASDAQ under a new ticker symbol.

“ICI is extremely excited to partner with David Gow and SportsMap as we continue to deliver our innovative software and hardware solutions," says Gary Strahan, founder and CEO of ICI, in the release. "We believe our software and sensor technology can change the way companies across industries perform predictive maintenance to ensure reliability, environmental integrity, and safety through AI and machine learning.”

Strahan will continue to serve as CEO of the combined company, and Gow will become chairman of the board. The transaction values the combined company at a pre-money equity valuation of $100 million, according to the release, and existing ICI shareholders will roll 100 percent of their equity into the combined company as part of the transaction.

“We believe ICI is poised for strong growth," Gow says in the release. "The company has a strong value proposition, detecting the overheating of equipment in industrial settings. ICI also has assembled a strong management team to execute on the opportunity. We are delighted to combine our SPAC with ICI.”

Founded in 1995, ICI provides infrared and imaging technology — as well as service, training, and equipment repairs — to various businesses and individuals across industries.

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