With the increase in remote and hybrid work following the Covid-19 pandemic, many employers have struggled to navigate the different state laws applicable to remote workers. What once felt like a straightforward question — Where does an employee work? — has become more complicated when someone can live in one state, log in from another, and travel frequently between both.

This isn’t just a theoretical challenge. State wage and hour laws, tax obligations, and leave requirements often differ in significant ways. Employers who overlook those differences may face unexpected liabilities or compliance risks.

A recent case in the Massachusetts Superior Court brought this issue into sharp focus by highlighting the confusion that can arise around individuals who work from home in one state being employed by a company in another state. 

What Happened in Dubois v. Staples, Inc., et al.

In Dubois v. Staples, Inc., et al. (Civil No. 23-1746-BLS1), the Massachusetts Superior Court had to decide which state’s wage act applied to a sales employee working from Rhode Island, with a sales territory in New York and New Jersey, for a company with its headquarters in Massachusetts. To complicate things further, during the final months of her employment, the employee started to cover Massachusetts-based clients.

Making sense of this isn’t straightforward, even for seasoned employers. To recap, the variables in question were:

• Employee’s work-from-home location: Rhode Island
• Company headquarters: Massachusetts
• Sales territory: New York and New Jersey… and later Massachusetts

The employee filed a wage claim in court in Massachusetts, and the employer tried to dismiss the claim based on the argument that Rhode Island law would apply. Ultimately, the court ruled that because the employer was located in Massachusetts and the employee did occasional work for Massachusetts-based clients, the Massachusetts Wage Act could apply and the case could proceed.

Implications and Takeaways

The court’s ruling means that, under some circumstances, an employee who lives and works out-of-state can bring claims for unpaid wages and commissions under the Massachusetts Wage Act. This ruling does not mean, however, that the employee could not have instead filed a claim in Rhode Island, their home state. Moreover, the states of New York and/or New Jersey might also be willing to lay claim to the case, given that the employee primarily sold to clients in those states. 

In other words, multiple states may have a legitimate claim to regulate the same employment relationship.

We Can Help

Our HR and legal professionals can help you ensure that your pay (or other relevant) policies are consistent with the various states where your employees work — or reside, or even do some work occasionally. Send us a message or schedule a free consultation to discuss your organization’s needs. 

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