Remote Work Policy Template: Free Sample & What to Include

(Disclaimer: This article is for general informational purposes only and should not be considered legal advice.)

A 45-person software company in Chicago sent everyone home a few years ago and never quite called them back. Nobody wrote down any rules, because things seemed to be working fine. Then, in a single week, the operations manager learns three things.

A customer success rep has been working from her sister’s guest room in Phoenix since spring, and payroll had no idea. A sales engineer has filed an expense report for a standing desk, a second monitor and “internet, ongoing.” And an hourly coordinator wants overtime for every Slack message she answered after dinner, which, unfortunately, the timestamps back up.

None of it is anyone’s fault, exactly. But each problem costs money, and each one was avoidable. A short written policy would have required approval before the move to Arizona, spelled out what the company reimburses and made it clear that hourly employees don’t work off the clock (and get paid when they do).

So what should a remote work policy actually say? Here’s the short answer. A remote work policy sets the rules for employees who work from home or anywhere outside the office: who qualifies, where they can work, when they must be available, how hours are tracked, what the company pays for and how company data stays protected. Because employment law follows the employee’s work location, the policy also helps you control which state and city laws apply.

Below, we’ll cover why you need one, what to include, the federal and state rules that matter most for remote teams, and a free remote work policy template you can adapt for your handbook.

Why you need a remote work policy

You need one whether your whole team is remote or just a few people work from home part of the week. Once work leaves the office, these issues come with it:

• Location drives compliance: An employee who moves to another state can bring new obligations with them: payroll tax registration, state wage-and-hour rules, paid sick leave, paid family leave and required notices.
• Wage-and-hour risk: Off-the-clock email and messages are a common source of overtime claims for non-exempt remote employees.
• Expense reimbursement: Several states require employers to reimburse necessary business expenses, which can include part of a personal phone or internet bill.
• Security: Home networks, personal devices and public Wi-Fi create data protection risks.
• Fairness: Written eligibility criteria help you make consistent decisions and avoid discrimination claims.

Without a written policy, each of these gets decided one manager at a time. That’s how you end up with three different answers to the same question, and an employee who can point to all three.

What to include in a remote work policy

Here’s the policy at a glance, in the order a remote arrangement actually plays out:

1. Eligibility: which roles can work remotely and how to apply.
2. Schedule: core hours, availability and timekeeping.
3. Equipment: what the company provides and what gets returned.
4. Security: networks, devices and data handling.
5. Review: how arrangements are evaluated or ended.

The sections below fill in the details, including the legal issues behind each one.

Eligibility and approval

Define which roles can work remotely, whether remote work is a benefit the company can change, and who approves it. Use objective criteria such as job duties and performance, not whoever asks first or loudest.

Get approvals in writing from the manager and HR, so there’s a record of what was agreed. And keep in mind that remote work can also be a reasonable accommodation under the ADA. Your general eligibility rules don’t replace your accommodation obligations, so route those requests through your accommodation process rather than the general approval process.

Work location

Require employees to work from an approved location and to get written approval before working from a different state or country, even temporarily. Those last two words matter. Employees are generally covered by the laws of the state where they actually work, and a two-week visit home has a way of turning into a whole season.

A lead time (the template below uses 30 days as a placeholder) gives payroll and HR room to handle tax registration and any new state requirements before the move instead of after. If you already have people in several states, read our guide on whether one multi-state employee handbook can cover every state.

Hours, availability and timekeeping

Set core hours or availability expectations and time zone rules. A team spread from Boston to Seattle needs to know whether the 9 a.m. stand-up means Eastern or Pacific.

For non-exempt employees, this is where remote work gets expensive. Hours worked at home count the same as hours in the office under the Fair Labor Standards Act (FLSA), so your policy should require accurate recording of all time worked, prohibit off-the-clock work and explain the meal and rest break rules that apply in the employee’s state.

Be specific about after-hours messages. If a non-exempt employee answers Slack at 9 p.m., that’s work time, and it has to be paid. The cleanest rule: non-exempt employees don’t check email or messages outside working hours without authorization, and any time they do work gets recorded and paid.

Equipment and expense reimbursement

Say what the company provides (laptop, monitor, phone), that it stays company property and when it has to be returned. Then say what the company reimburses and how employees submit expenses.

In several states, reimbursement isn’t optional. California (Labor Code 2802) and Illinois (Wage Payment and Collection Act) are among the states that require employers to reimburse necessary business expenses. Others include Iowa, Minnesota, New Hampshire, North Dakota, South Dakota, Montana and the District of Columbia. For a remote employee, those expenses can include part of a personal phone or internet bill.

A monthly stipend can keep this simple, but in states that require reimbursement, it has to be enough to cover actual necessary costs. Tie this section to your expense reimbursement policy so the two don’t contradict each other.

Data security and confidentiality

Set a few ground rules for anyone handling company data outside the office:

• Secure networks: a password-protected network or the company VPN, especially on public Wi-Fi.
• Locked, encrypted devices: devices that lock when unattended and are encrypted.
• Approved software only: company information stays in approved systems and tools.
• No family use: company devices are for the employee, not for the kids’ homework.
• Prompt reporting: lost devices and suspected breaches go to a named IT contact right away.

Cross-reference your confidentiality policy and, if employees use personal phones or laptops for work, your BYOD (bring your own device) policy. If your team uses AI tools, see our guide to AI policies for employee handbooks. For your IT team, NIST’s guidance on managing the security of mobile devices (SP 800-124 Rev. 2) is a solid technical reference.

One labor law note: under Tesla, Inc., 375 NLRB No. 63 (October 2026), the NLRB judges rules on company IT and email systems under its Caesars Entertainment standard rather than Stericycle, which still governs your other work rules.

Monitoring and notice

If you monitor email, internet use or devices, say so before employees start working remotely. Employers can generally monitor company-owned devices and accounts, especially when a written policy tells employees about it.

In some states, notice is the law: New York, Connecticut and Delaware require advance written notice of electronic monitoring. Even where it isn’t required, telling people up front what you monitor and why keeps a security measure from feeling like surveillance. Have employees sign an employee handbook acknowledgment form so you can show who received the policy.

Workspace safety and injuries

Workers’ compensation generally covers injuries arising out of work, even when the work happens at home. Ask employees to keep a safe, distraction-free workspace and to report work-related injuries to their manager and HR promptly, while the details are still fresh.

Communication and performance

Explain expected response times, required tools and meetings. If your team runs on Slack and Zoom, say so, and say how quickly a message during working hours should get a reply.

Then make it clear that performance standards are the same for remote and in-office employees. Remote work changes where the work happens, not what good work looks like.

In-office requirements and changes

Explain when remote employees must come to the office (team meetings, training, events) and who pays for required travel. If your company runs a set schedule of office days, pair this policy with a hybrid work policy.

Finally, reserve the right to change or end remote work arrangements with reasonable notice, subject to any accommodation obligations. If your handbook makes remote work sound permanent, a return-to-office announcement will land like a broken promise.

Federal and state laws for remote employees

Here’s a quick reference to the legal rules behind the sections above. The details depend on where each employee actually works, so check the rules for every state where you have people.

For what else each state expects in a handbook, check our guide to employee handbook requirements by state.

Free remote work policy template

Copy and adapt this sample remote work policy. Replace the bracketed text, delete anything that doesn’t apply to your company, and have an employment attorney review the final version.

Remote Work

Purpose. [Company Name] allows remote work for eligible positions when it meets business needs. This policy explains our expectations for employees who work remotely full-time or part of the time.

Eligibility and approval. Remote work is available for positions that [Company Name] determines can be performed effectively away from the office. Remote work must be approved in writing by your manager and [HR]. Remote work is not a guaranteed benefit, and [Company Name] may change or end a remote arrangement based on business needs or performance, with reasonable notice where possible. Requests for remote work as a reasonable accommodation will be handled under our accommodation policy.

Work location. You must work from the location approved by [Company Name]. You must obtain written approval at least [30 days] before working from a different state or country, including temporarily, so that we can meet our legal and tax obligations there.

Hours and timekeeping. Remote employees are expected to be available during [core hours] in the [time zone] time zone, unless otherwise agreed. Non-exempt employees must record all time worked accurately, take meal and rest breaks as required by law and our policies, and must not perform work off the clock, including checking email or messages outside working hours, without authorization. All time worked will be paid.

Equipment. [Company Name] will provide [laptop, monitor and headset]. Company equipment remains company property, must be used primarily for company business, and must be returned when your employment ends or your remote arrangement ends.

Expenses. [Company Name] will reimburse reasonable and necessary business expenses incurred while working remotely, including [a monthly stipend of $[amount] for internet and phone use], in accordance with our expense reimbursement policy and applicable law. Submit expenses within [30 days].

Security. Use a secure, password-protected network or the company VPN; lock your device when unattended; do not allow others to use company devices; store company information only in approved systems; and report lost devices or suspected security incidents to [IT contact] immediately.

Monitoring. [Company Name] may monitor the use of company-owned devices, accounts and networks, including [email, internet use and messaging tools], for [security and other legitimate business purposes]. [If you have employees in New York, Connecticut or Delaware, add the written monitoring notice those states require.]

Workspace and safety. Maintain a safe, distraction-free workspace. Report any work-related injury to your manager and [HR] as soon as possible.

Performance and communication. Remote employees are held to the same performance standards as in-office employees and are expected to attend scheduled meetings, respond to messages within [timeframe] during working hours, and keep calendars current.

In-office attendance. You may be required to work on-site for [meetings, training or events]. [Company Name] will [reimburse required travel per the travel policy].

Common remote work policy mistakes to avoid

1. Not tracking hours for non-exempt remote staff: Time spent answering email after hours is still work time that must be paid. If the policy doesn’t require employees to record it, you’ll hear about it in an overtime claim instead.
2. Ignoring expense reimbursement laws: States such as California and Illinois require employers to cover necessary business expenses, including some home-office costs. A stipend that falls short of actual necessary costs doesn’t fix that.
3. Applying only your home state’s law: Employees are generally covered by the laws of the state where they actually work. A headquarters in Illinois doesn’t make Illinois the only state that counts for someone working in Arizona.
4. Letting employees relocate without approval: A move to another state, even a temporary one, can bring payroll tax registration and new employment law obligations. Require written approval first.
5. Monitoring without notice: If you monitor email, internet use or devices, say so in writing. In New York, Connecticut and Delaware, advance written notice is required.
6. Treating accommodation requests like perk requests: Remote work can be a reasonable accommodation under the ADA, so those requests belong in your accommodation process, not the general approval queue.
7. Making remote work sound permanent: Say that remote work isn’t a guaranteed benefit and that the company can change or end an arrangement with reasonable notice.

Remote work policy FAQs

What is a remote work policy?

A remote work policy is a written set of rules, usually part of your employee handbook, for employees who work from home or another location outside the office. It explains who can work remotely, where they may work from, when they must be available, how hours are tracked, what equipment and expenses the company covers and how company data must be protected.

What should be included in a remote work policy?

Cover eligibility and approval, approved work locations, schedules and availability, timekeeping for non-exempt employees, equipment, expense reimbursement, data security, communication tools, workspace safety and performance expectations. Then add any monitoring you do, in-office requirements and how the arrangement can be reviewed, changed or ended.

What are the rules of remote work?

Remote employees are generally covered by the laws of the state where they actually work, and hours worked at home count the same as hours in the office under the FLSA. Several states, including California and Illinois, require employers to reimburse necessary business expenses, and New York, Connecticut and Delaware require advance written notice of electronic monitoring. Your policy then adds the company’s own rules on eligibility, location, hours, equipment and security.

Can my boss remote into my computer to see what I’m doing?

Usually, if it’s a company-owned computer. Employers may generally monitor company-owned devices and accounts, especially with a written policy that tells employees about it. Some states, including New York, Connecticut and Delaware, require advance written notice of electronic monitoring, so employers should spell out what they monitor before remote work starts.

Do employers have to reimburse remote employees for internet and phone?

In states that require reimbursement of necessary business expenses, such as California and Illinois, employers generally must reimburse a reasonable portion of personal internet and phone costs that employees must use for work. Iowa, Minnesota, New Hampshire, North Dakota, South Dakota, Montana and the District of Columbia also require reimbursement of necessary business expenses. In those places, a monthly stipend works only if it covers actual necessary costs.

Can remote employees work from another state?

Only if the employer approves it. Working from another state, even temporarily, can create payroll tax registration and employment law obligations there, so your policy should require advance written approval for any change in work location.

Can an employer require remote employees to return to the office?

Generally yes, unless an employment contract says otherwise or remote work is a reasonable accommodation for a disability. Give reasonable notice, apply return-to-office decisions consistently, and make sure your policy says remote arrangements can change.

Do remote employees get paid for answering emails after hours?

Non-exempt employees do. Hours worked at home count the same as hours in the office under the FLSA, so time spent on email or messages after hours is work time that must be paid. That’s why your policy should require accurate time records and prohibit off-the-clock work without authorization.

Are remote employees covered by workers’ compensation?

Generally, yes, for injuries arising out of work, even when the work happens at home. Ask remote employees to keep a safe workspace and to report work-related injuries to their manager and HR promptly.

How can Handbooks.io help you create a remote work policy?

Handbooks.io includes a ready-to-use remote work policy, adapted for each state where you have employees, inside a complete employee handbook developed and reviewed by U.S. labor attorneys. For a remote team, that’s the hard part: the rules on expenses, timekeeping and monitoring notice follow each employee home, and your policy has to follow them too.

Multi-state handbooks keep every location covered in one place, and when the law changes, your federal, state and local policies get updated. Built-in e-signatures and acknowledgment tracking let you confirm that every remote employee received the policy, without mailing paper across three time zones.

New to handbooks? Start with our guide, What Is an Employee Handbook? Handbooks.io is trusted by 25,000+ companies, and you can start for free, no credit card required.