Hiring remote employees across different states, provinces, or countries provides access to top talent but introduces complex multi-jurisdictional employment laws, data security concerns, and intellectual property risks. Because the employer cannot physically sit across a desk with a remote worker, executing a thorough digital employment contract is the foundation for establishing clear performance expectations, governing law, and corporate IP ownership.
Critical Sections in a Remote Employment Agreement
A comprehensive remote employment contract must address the unique dynamics of remote work:
- Governing Law and Jurisdiction: Explicitly identifying which state or national legal jurisdiction governs the contract and where disputes will be adjudicated.
- Proprietary Information and Inventions Assignment (PIIA): Clear, binding provisions ensuring that all software code, product designs, marketing materials, and inventions created by the remote worker belong exclusively to the employer.
- Home Office Equipment and Data Security: Rules regarding the safe storage of company data on personal Wi-Fi networks, usage of virtual private networks (VPNs), and maintenance of company-issued laptops.
- Time Tracking for Hourly Remote Staff: Strict rules mandating accurate clock-ins and prohibiting unauthorized, unrecorded overtime for remote non-exempt employees.
The Remote Onboarding Execution Flow
- Send via Secure E-Signature: Deliver the personalized employment contract to the remote candidate's personal email.
- Dual Execution: The candidate signs on their home computer or phone, followed by automated routing to the executive for company countersignature.
- Instant Cloud Delivery: Both parties receive a fully executed PDF with an immutable timestamped audit log.
Home Office Expense Reimbursements and Multi-State Withholdings
Remote work arrangements frequently cross state tax borders, creating payroll nexus obligations for employers. Your remote employment agreement should clearly establish the employee's designated home workstation address, outline monthly internet and phone expense stipends in accordance with local labor statutes, and specify procedures for reporting out-of-state relocations.
Employers can use Undersign to execute remote employment contracts and IP assignment agreements seamlessly across distributed teams, maintaining compliant global hiring archives.