The state an employee is working in - even temporarily - determines the labor laws that the employee is subject to.
When it comes to taxes, out-of-state work may require a multi-state tax return.
In 2011, the California Supreme Court ruled that California's overtime laws did apply to Oracle's nonexempt traveling instructors who had come in from Colorado and Arizona for work trips. Ultimately, Oracle was responsible for paying overtime to traveling workers for the hours they worked within California's borders.
If, for example, a minimum wage employee from Wyoming is sent to Colorado for training, their wages for hours worked in Colorado would need to be adjusted to meet Colorado's minimum wage requirements.
When sending employees to work out of state, be sure to compensate them in a way that complies with the foreign state's wage and labor laws. When it comes to taxing their wages for out-of-state work, the employee may need to file a multi-state tax return.
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