The technological age has many advantages.  In the workplace, many employers have discovered that telecommuting can result in lower overhead, happier employees, and the ability to utilize people remotely to perform some of the recruiting or account executive functions.  In 2006, approximately 34 million American workers telecommuted in some capacity.[1]  Considering telecommuting is a relatively new option for employees, the workers' compensation implications are still crystallizing.
 
Although very little case law exists on the subject, two cases demonstrate the exposure employers face by allowing their employees to telecommute without setting specific guidelines.  While an employer cannot completely shield itself from workers' compensation liability, there are steps an employer can take to lessen its susceptibility to workers' compensation claims.
 
The Tennessee Supreme Court expanded its workers' compensation coverage to include telecommuters in 2007.  In Wait v. Travelers Indemnity Company of Illinois,[2] a telecommuter was assaulted by her neighbor while preparing lunch.  The neighbor's assault caused her to sustain severe injuries.  The Court held the injuries occurred during the course of the employee's employment.  The Court noted her employer did not set specific work hours, did not prohibit her from taking personal breaks, and did not restrict her activities during working hours.  The Court found it reasonable that the employee would take a lunch break just as employees do at traditional work sites.  Although ultimately the Court held against the employee on other grounds, the holding that the injuries occurred during the course of her employment expanded Tennessee workers' compensation law to include telecommuters.
 
Though recently expanded, the case law on telecommuting actually dates to 1980.  In 1980, the California Court of Appeals awarded compensation to a college professor who slipped on some papers at his house while preparing a class syllabus.[3]  The University provided office space for the professor on campus, but the professor preferred to take work home because of frequent student interruptions at his campus office.  Compensation was awarded because the Court considered the professor's home to be a "second office."
 
Here are helpful tips to keep in mind if you have employees working from home.