The HR Compass

The Challenges for Employers with Multi-State Employees

Aug 14, 2021

How to Level the Playing Field and Ensure Your Benefits are Compliant and Equitable

Attracting and retaining talent in this difficult labor market is a top challenge for our clients, which are US-based small companies and internationally-based businesses that have expanded into the United States. As an outsourced human resources department, we help our clients develop strategies to retain top performers and implement effective strategies to attract talent.

Many of our clients have 10-50 employees often working in multiple states, which can present a complex human resources challenge. State laws govern employment-related matters including state withholding tax filings, unemployment and Workers’ Compensation, as well as benefits-related mandates, ranging from sick leave and paid time off to harassment training requirements.

Employers with multi-state employees have two primary concerns:

  1. Compliance: Am I adhering to the state’s laws?
  2. Equity of Benefits: How can I retain top talent when the differences across state requirements create benefit inequities for my employees?

Compliance Issues

It is imperative that employers are compliant with state laws. At Taylor HR Group, we know the state requirements and work with our clients to ensure their compliance, as well as develop strategies for retention and recruitment. During the pandemic, the compliance issue was exacerbated as more people moved to new locations while working remotely. This resulted in some clients having to address the expense of establishing a presence in other states for tax filings or developing policies for employees to relocate. As part of compliance, we help our clients develop a sound roadmap for their company policies and procedures, which are then detailed in their company handbooks.

Benefits Inequity

Employers also face benefits challenges due to the differences in state laws. Many of our clients want to establish solutions to address the inequities that arise due to state differences by creating programs and policies to offset the benefit discrepancies. Below is just one example of how we helped solve such challenges to increase employee satisfaction and retain top talent.

Client Example of Benefits Inequity Across States

This Massachusetts-based company has employees in both Massachusetts and Texas. By law, the employees in Massachusetts are eligible for state-paid family and medical leave. However, Texas employees are not eligible for similar benefits, according to that state’s laws. Taylor HR helped this client (along with and many others in similar situations) strategize on ways to address the inequities from having employees in multiple states. In this example, we assisted our client in developing and implementing a solution for the employer to offer an out-of-pocket benefit to the Texas employees for paid family and medical leave. This was done with the goal of retaining these employees and offering a benefits package on par with what their Massachusetts colleagues were receiving.

Helping Employers with Employees in Multi-State Matters

If you have concerns around compliance and benefits inequities due to having employees in multiple states, we can efficiently and effectively help you resolve those matters. We have the experience, state-by-state compliance knowledge and proven strategies to help you get and stay compliant while retaining your top talent. Contact us so we can help you develop a sound approach that works both for your employees and your organization.