Ask a Business Expert

A: No small business owner should be surprised at this point when an employee asks to telecommute. It is becoming an increasingly mainstream option.

Recently, the International Telework Association and Council released the results of its annual survey. It found that a whopping one–fifth of U.S. employees work away from the main office in one form or another, translating into 28 million teleworkers. The survey also found that, not surprisingly, 66 percent of teleworkers express increased job satisfaction, 75 percent say they are more productive, and 80 percent feel a greater commitment to their employer.

Given that trend, and that this is a fairly painless way to reward valuable employees without adding to the bottom line, offering responsible employees the ability to telework part–time makes a lot of sense. But there are legal issues to consider.

The first has to do with something called "agency." Your employee is your agent, for legal purposes. When that employee works in a supervised office, there is little to be concerned about. However, when that employee works outside the office, potential liability follows them where they go.

For example, say that while working from home, your employee hops in the car, picks up her daughter from school, runs a business–related errand, and then gets in a car accident. Your company would likely be liable for any damages because it was, at least partly, a business–related errand.

The bad news is that there is little you can do to change this. As long as an employee is acting within the "scope" of his or her employment, any liability they create is normally the responsibility of the employer.

That is why the best thing you can do when you decide to let employees telework is to make sure your insurance covers it. Check and see that your policies extend beyond the workplace and into the employees home, car, etc., so that if anything does happen (the FedEx man slips on her icy porch for example), you are covered. It may be that the employee will have to get a supplemental insurance policy, and you should pay for that.

You should also be concerned about security. When employees work in a main office, it is easy to set up firewalls and use encryption software which keep business information private. It is a bit trickier when an employee telecommutes. One option is to have employees who work from a remote location save all work on the office server, rather than their own personal computer. Another choice is to set up similar firewalls on their home computer.

Finally, have them sign an agreement that details clearly your telecommuting policies. This contract might, for instance, prohibit family members from using the laptop you provide, or it might address such things as telephone reimbursement, return of equipment, confidentiality, and safety.