"Employers willing to trade salary reductions for remote or flexible work arrangements risk creating a fertile ground for overlapping wage-and-hour and anti-discrimination compliance challenges. As companies revert to pre-pandemic policies requiring in-person, full-time attendance, they are exploring ways to meet increasing demand for flexibility, particularly from workers and job seekers who argue that strict in-office structures affect their health or productivity, management-side attorneys said."
"As companies revert to pre-pandemic policies requiring in-person, full-time attendance, they are exploring ways to meet increasing demand for flexibility, particularly from workers and job seekers who argue that strict in-office structures affect their health or productivity, management-side attorneys said. New research indicates that these workers are in many cases willing to quit or accept a salary cut as a tradeoff for flexibility, which also allows them to avoid commuting costs and rising childcare expenses."
Employers offering salary reductions in exchange for remote or flexible work can trigger overlapping wage-and-hour and anti-discrimination compliance exposures. Many companies reverting to pre-pandemic, in-person attendance are nevertheless seeking ways to accommodate rising demand for flexibility. Some workers and job seekers are willing to quit or accept pay cuts to secure remote or flexible schedules and to avoid commuting and childcare costs. These arrangements can raise issues involving classification, pay deductions, accommodations under disability laws, and varying state regulations. Employers should evaluate legal risks, apply consistent policies, and obtain legal review before implementing pay-for-flex models.
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