Remote Work Policy Template for Small Business

Remote work without a written policy is just a handshake deal waiting to become a disagreement. A good policy sets expectations while they’re easy to set — not after something goes wrong. Here’s the complete structure, section by section.

1. Purpose and eligibility

State which roles are eligible and that remote work is a privilege based on job duties and performance — not an entitlement. Reserve the right to modify or end the arrangement.

2. Work schedule and availability

Define expected working hours, core availability windows, how quickly employees must respond to messages, and how time off is requested. For nonexempt employees, spell out that all hours worked must be recorded — including the quick “just checking email” at 9pm. See our overtime pay rules and timesheet template.

3. Communication expectations

Which channels for what (chat for quick questions, video for meetings, email for decisions), meeting attendance rules, and camera expectations.

4. Equipment and tech support

Who provides the laptop, monitor, and internet — and who pays. Define what’s company property, how it’s maintained, and what happens to it when employment ends.

5. Data security

Require password managers, encrypted connections, locked screens, and no public Wi-Fi without VPN. Prohibit storing company data on personal devices unless explicitly approved.

6. Expenses

State which expenses are reimbursed and how to submit them. Note: a few states (notably California and Illinois) require reimbursement of necessary business expenses — including a portion of home internet and phone for remote workers.

7. Performance measurement

Remote work is managed by output, not presence. Define how performance is evaluated, check-in cadence, and that all standard policies — including discipline and performance improvement plans — apply equally.

8. Ending the arrangement

Reserve the right to require on-site work with reasonable notice, and clarify that ending remote work isn’t a demotion or a change in pay.

Add it to your handbook

A remote work policy works best as a section of your employee handbook so it sits alongside your attendance, security, and expense policies rather than floating as a separate memo.

FAQ

Do I need a remote work policy for hybrid schedules? Yes — hybrid creates the most confusion (which days, who decides). Write it down.

Are remote workers covered by workers’ comp? Generally yes — injuries “arising out of and in the course of employment” can happen at a home office too.

Can I require remote workers to live in a certain state? You can set location requirements, partly because employing someone in a new state can trigger tax and compliance obligations there.

General information only — not legal advice. Multi-state remote work has tax and compliance implications worth professional review.

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