Remote work Timekeeping Under Scrutiny: New Court Rulings Impact Wage Laws
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A growing number of legal disputes are centering on how to fairly compensate remote employees, and recent decisions from federal courts are beginning to draw lines in the sand. On November 10,2025,the U.S. District Court for the District of New Jersey addressed a case involving remote Patient Care Associates (PCAs), offering a contrasting view to rulings in traditional call center settings. These decisions signal a developing legal framework for the unique challenges of remote work arrangements and coudl considerably impact employers’ wage and hour practices.
The core issue revolves around defining when the “workday” begins and ends for remote employees. Unlike on-site workers, those working from home have greater versatility – and ambiguity - regarding activities before and after core job duties. This distinction is proving critical as courts grapple wiht applying established labor laws to this evolving work model. The stakes are high, potentially affecting millions of remote workers and the companies that employ them, as misclassification of work hours can lead to substantial back-pay liabilities and legal penalties.
The LYP Case: Remote vs. On-Site Considerations
The case, Khartchenko v. The American Oncologic Hospital, Inc. (23-CV-23043), involved PCAs who handled client communications, scheduled appointments, processed test results, managed medication refills, and addressed after-hours emergencies. These non-exempt employees were scheduled for 40-hour workweeks with overtime requiring prior managerial approval. A key aspect of their role was maintaining a “call-ready” status at the start of each shift.
PCAs utilized laptops, docking stations, and various software applications to manage patient calls. employees reported needing five to ten minutes to log in to their computers and launch the necessary programs. Timekeeping relied on a web-based system, but often, PCAs weren’t officially “clocked in” until *after* completing the software login process. Similarly, at the end of the day, employees would clock out before fully shutting down their systems, adding another five to ten minutes of potential uncompensated time.
The Ohio-based U.S. district Court for the Southern District of Ohio, in the case Lott v. Recker Consulting, LLC (1:23-CV-489), distinguished the situation from previous rulings involving physical call centers. The Tenth Circuit of Appeals had previously steadfast that on-site call center employees should be compensated for time spent “waking up” computers and opening applications. However, the Ohio court reasoned that remote employees have a wider range of non-work-related activities available to them when their computers are powered on.
The court specifically cited examples like online games, social media browsing, and news consumption, stating that simply having a work computer functioning doesn’t automatically qualify all activities as work time. “after a remote employee starts his or her computer, the activities that he or she undertakes are not automatically rendered a principal activity merely because the work computer is functioning,”
the court explained. Consequently, the Ohio court ruled that paid time for the LYP PCAs would begin only when they actively engaged with job-related software and end when that usage ceased, rather than being tied to computer login/logout times.
Key Court Decisions: A Comparative Overview
| Case Name | Court | Date | Key Finding |
|---|---|---|---|
| Khartchenko v. The American Oncologic Hospital, Inc. | Dist. Ct. N.J. | 2025/11/10 | Remote workdays begin/end with job-related software use. |
| Lott v. Recker Consulting, LLC | Dist. Ct. S.D. Ohio | 2025/09/04 | Distinguished remote work from on-site call centers. |
Did You Know?
The Fair Labor Standards Act (FLSA) doesn’t explicitly define when a workday begins or ends, leaving it to courts to interpret based on the specific facts of each case.
Pro Tip:
Employers should review their remote work policies and timekeeping practices to ensure compliance with evolving legal standards. Clear guidelines regarding when work time begins and ends are crucial.
What’s Next for Remote Work litigation?
While these decisions aren’t binding precedent for all courts, they demonstrate a growing trend in how legal challenges to remote work arrangements are being addressed. The legal landscape surrounding remote work is still developing, and outcomes will likely remain fact-specific. courts and governmental agencies are actively monitoring these issues, and employers should stay informed about new developments. As noted by legal experts, the application of labor laws to remote work is a complex and evolving area.
These cases underscore the importance of clear and accurate timekeeping practices for remote employees. Employers should consider implementing policies that specifically address the start and end of the workday, taking into account the unique circumstances of remote work.
What challenges do you foresee as remote work becomes more prevalent? How can companies best adapt their policies to ensure fair compensation for remote employees?
The Rise of Remote Work and Legal Challenges
The COVID-19 pandemic dramatically accelerated the shift towards remote work, with millions of employees transitioning to work-from-home arrangements. This rapid change has exposed gaps in existing labor laws and created new legal challenges.Traditionally, wage and hour laws were designed for employees working in a fixed location under direct supervision. Remote work blurs these lines, raising questions about when work begins and ends, what constitutes compensable time, and how to accurately track hours worked. The legal issues extend beyond timekeeping to include expense reimbursement, workplace safety, and data security. As remote work becomes a more permanent feature of the employment landscape,courts and lawmakers will continue to grapple with these complex issues.
Frequently Asked Questions About Remote Work and Compensation
- Q: What is considered “work time” for remote employees?
A: Work time includes any period when an employee is required to be “on duty” or actively engaged in job-related activities, even if working from home. This can include time spent responding to emails, attending virtual meetings, and using job-specific software.
- Q: How should employers track time for remote workers?
A: Employers should implement clear and accurate timekeeping systems, such as time tracking software or detailed reporting requirements.It’s crucial to ensure that all compensable time is accurately recorded.
- Q: Are employers required to reimburse remote employees for expenses?
A: In some cases, yes. Employers might potentially be required to reimburse remote employees for reasonable and necessary expenses incurred while working from home,such as internet access and office supplies.
- Q: What is the impact of the FLSA on remote work?
A: The FLSA applies to remote workers just as it does to on-site employees. employers must comply with minimum wage, overtime, and recordkeeping requirements.
- Q: How can employers minimize legal risks related to remote work?
A: Employers should develop clear remote work policies, provide training to employees and managers, and regularly review their practices to ensure compliance with evolving legal standards.
