If we send employees to training out of state, which state's minimum wage and tax laws do we follow?

September 3, 2015・2 mins read
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If we send employees to training out of state, which state's minimum wage and tax laws do we follow?

Table of contents

  • 1.Overtime: Oracle's lesson learned
  • 2.Out-of-state training
  • 3.Final tips
  • 4.Helpful links:

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.

Overtime: Oracle's lesson learned

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.

Out-of-state training

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.

Final tips

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.

Helpful links:

When Employees Work Out of State - LawRoom.com

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Lauren Perales

Lauren Perales

An experienced professional with a diverse background, Lauren Perales writes content on strategic solutions and HR insights.

Table of contents

  • 1.Overtime: Oracle's lesson learned
  • 2.Out-of-state training
  • 3.Final tips
  • 4.Helpful links:
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