Remote Employees Working From Another State — Which Wage Laws Apply?

Justice Law Corporation

Although the pandemic has subsided, the shift toward remote work that surged in recent years is here to stay. Working from home or elsewhere that is not considered “on-site” can raise a number of complex questions about pay and hours. 

Here is what you need to know: Employees are generally covered by the wage and hour laws of the state where they perform their jobs, not the state where their employers are located. That means people who work remotely from California or Washington have the same legal rights as other employees in those states, even if their employers are based elsewhere. That is good news for remote workers because California and Washington have some of the strongest employment laws in the country.

At Justice Law Corporation, our lawyers help working people across California and Washington ensure that they are fully paid. We are experienced attorneys who have dedicated our careers to this area of the law. Our firm has a strong track record of results for the people that we represent.

Remote Workers in California

California law favors protecting workers who physically work in the state, regardless of where the company operates. To determine which laws apply, the question is: Where is the work being performed? 

That is true regardless of whether the employer is headquartered in another state or even outside of the U.S. Out-of-state companies with California remote workers must treat them as if they were employed within California, following the state’s strict standards for pay, hours, and working conditions.

Minimum Wages

The current minimum wage statewide in California is $16.50. Workers in specific fields, such as healthcare and fast food, must be paid at higher minimum rates under state law.

Many cities and counties—especially around Los Angeles and the Bay Area—have adopted their own, higher pay floors. A full list of city and county minimum wage rates can be found here.

Employers with operations in multiple cities or counties must comply with the wage requirements based on where their workers perform their jobs, not where the company is based or where the employees live. 

Overtime Pay

The state’s overtime law requires employers to pay workers at higher rates for time worked beyond eight hours a day or 40 hours per week.

California employees must be paid 1.5 times their regular rate for any work performed beyond those time limits. The overtime rate ratchets up to twice the regular pay rate for hours worked beyond 12 in a day or eight on the seventh consecutive day in a workweek.

Here is an example: A remote employee works from home in California and earns $24 per hour. If she works overtime, she must be paid at the time-and-a-half rate of $36 an hour or the double time rate of $48 an hour, depending on the situation.

There are a number of exemptions, including for certain “white collar” workers. Such employees must perform executive or professional job duties that involve a level of discretion and independent judgment to qualify for the exemption. They also must be paid at or above a specific salary level. 

A California wage and hour attorney at our firm can help you understand your rights and ensure you are fully paid for your work.

Remote Workers in Washington

If you work in Washington, even remotely, you generally are protected by the state’s wage and hour laws. 

Minimum Wages

The current minimum wage in Washington is $16.66 per hour. The pay floor is set to rise to $17.13 per hour in 2026, with additional increases in the following years.

Seattle, SeaTac, Bellingham, and Tukwila are among the localities that have adopted higher minimum wage rates. A full list of city and county minimum wage rates can be found here.

Employees must be paid for all hours on the job, including various prep work and required meetings, and trainings. That is true regardless of whether it is during employees’ designated normal work hours.

Overtime Pay

Employees in Washington must also be paid time-and-a-half for all hours worked beyond 40 in a workweek. Unlike in California, overtime pay does not kick in if an employee works more than a certain number of hours in a single day.

Employers can define a workweek as any seven consecutive days that begin on the same day and time every week. The calendar week (Sunday to Saturday) is the default for employers who do not otherwise define the workweek. 

The state exempts certain “white collar” workers from overtime pay requirements. These workers must perform specific executive, administrative or professional duties on the job and be paid at a particular salary level in order to be exempt.

A Washington wage and hour attorney at our firm can help you understand your rights and take action if you have been shortchanged.

Worker Misclassification

Companies across the country increasingly are looking to shirk their legal responsibilities to workers by classifying them as “independent contractors” rather than “employees.” Remote workers, in particular, are often deemed contractors so companies can avoid the complications of complying with out-of-state laws.

Contractors generally are treated as self-employed entrepreneurs. They are not covered by state laws that set minimum wages and require employers to pay overtime rates.

Just because a company claims you are not an “employee” does not mean it is true. Misclassification is sadly rampant in California, Washington, and throughout the country. Many workers who should be “employees” are incorrectly classified as independent contractors.  

Our California and Washington Employment Lawyers Can Help

If you believe that your employer is violating your rights on the job, whether it is by misclassifying you or shortchanging you on regular pay or overtime, you do not need to go it alone. The attorneys at Justice Law Corporation can help you evaluate your claim and understand your rights and options. 

Our offices are conveniently located in Pasadena and Seattle, and we serve clients across the region. Contact us at (818) 230-7502 to schedule a free consultation.