3505 Out-of-State Work Locations

Policy Sections

3505.1 Out-of-State Work Locations – U.S. Locations

3505.2 Out-of-State Work Locations – International Locations

3505.3 Approval Process – U.S. and International Work Locations

This policy covers the hiring of a staff employee to work at a location outside Connecticut, the assigning of a current staff employee to a work location outside Connecticut, and the use of University-approved flexible work arrangements outside Connecticut.  This policy applies to all University staff employees, including temporary staff employees.

The majority of Yale staff employees work at a University campus location in Connecticut.  In limited circumstances, a University department may identify a business need to hire a staff employee for, assign a staff employee to, or authorize a staff employee’s request for a flexible work arrangement in, a work location outside Connecticut.  All such arrangements require specific advance University approval.

This Policy provides the basis for permitting staff employees to work at a location outside Connecticut and the specific approvals required in advance of establishing a work location outside Connecticut (refer to Procedure 3505 PR.01 Out-of-State Work Locations Procedure and Staff Workplace Policies, Workplace Practices).  Advance University approval is required to ensure that the full school or departmental operations, services, and academic commitments will be maintained, and that the University complies with all additional employment-related requirements pertaining to work locations outside Connecticut.

Employee with an Out-of-State Work Location

An employee with an out-of-state work location is a staff employee who works, including one who telecommutes, from a location outside Connecticut for at least one day per week on a continual basis.  It does not apply to employees who work from a location outside Connecticut on an occasional basis.

Yale is subject to the employment-related laws (e.g., tax, labor, insurance) of the states and localities in which its employees work.  The University may also be subject to additional compliance requirements, which vary by jurisdiction.  Therefore, prior to hiring an employee for, assigning an employee to, or authorizing an employee’s flexible work arrangement for, a work location outside Connecticut, the University requires advance approval by the University’s Out-of-State Work Location Committee.  In reviewing the request, the Committee evaluates the University’s business needs and compliance requirements.

Employees must not use University funds for the purchase or rental of work space for out-of-state work locations related to a flexible work arrangement, pursuant to Staff Workplace Policies, Flexible Work Arrangements.

Important:  In addition to University obligations, an employee with an out-of-state work location may be subject to employment-related and other laws of his or her work state.

Yale is subject to the employment-related laws (e.g., tax, labor, insurance) of any country in which its employees work.  Hiring an employee for, assigning an employee to, or authorizing an employee’s flexible work arrangement for, a work location in another country, may require Yale to register and maintain a local legal presence, in addition to complying with the host country’s employment-related laws.  Such arrangements require the advance approval of the University’s Out-of-State Work Location Committee.  In reviewing the request, the Committee evaluates the University’s business needs and compliance requirements.  In most cases, however, this may not be a viable option.

It is recommended that, as an alternative, departments explore billing arrangements with a personnel employment agency or a local institution before attempting to establish a direct employment relationship.  Alternatively, contracting with an independent contractor to perform these activities may be an appropriate course of action.  The relationship, however, must be in accordance with Policy 3210 Purchase Contracts.  Please contact the University Tax Office or the Office of the General Counsel for assistance prior to entering into any such arrangements.

Employees must not use University funds for the purchase or rental of work space for international work locations related to a flexible work arrangement, pursuant to Staff Workplace Policies, Flexible Work Arrangements.

Important:  In addition to University obligations, an employee with an international work location may be subject to employment-related and other laws of his or her host country.

In general, departments must first obtain approval from the appropriate Human Resources Business Partner and Lead Administrator, and then obtain approval from the Out-of-State Work Location Committee, if applicable, prior to hiring an employee for, assigning an employee to, or authorizing an employee’s flexible work arrangement for, a work location outside Connecticut.  Refer to Procedure 3505 PR.01 Out-of-State Work Locations Procedure for the detailed approval process.  In the case of an employee’s request for a flexible work arrangement at a location outside of Connecticut, the employee must follow the procedure outlined in Staff Workplace Policies, Flexible Work Arrangements.

With approval from the Human Resources Business Partner and Lead Administrator, if the work location is in a state that the University has already approved (see University Approved States), then the department may proceed with the hiring, assignment, or flexible work arrangement.

If the work location is in a state that the University has not yet approved, or is outside the United States, approval from the Out-of-State Work Location Committee is required prior to hiring or assignment of a current employee, or allowing a flexible work arrangement in a work location outside Connecticut.

These arrangements must be reviewed by the Committee, and approved by both the Controller and the Vice President for Human Resources & Administration, or designee.  Due to the additional administrative and compliance requirements, the arrangement will likely not be approved if it is located in a state not previously approved (see University Approved States) or outside of the United States.  In reviewing the request, the Committee evaluates the University’s business needs and its compliance requirements.

Exceptions to this policy must be approved by the Controller, with final approval by the Vice President for Human Resources & Administration, or designee.

Controller and Vice President for Human Resources & Administration

• Provide final review and approval of adding a work location in a new state or in a country outside the United States, based on recommendations from the Out-of-State Work Location Committee.

Employee

• Maintains accurate home and work address information in the University’s Workday system. 

Requesting Department Head, or Direct Manager

• Sends the request to hire or assign an employee to an out-of-state location, or the request by an employee for a flexible work arrangement at an out-of-state location, to the appropriate Lead Administrator and Human Resources Business Partner.

Lead Administrator

• Reviews and approves departmental requests for out-of-state positions/assignments, with the appropriate Human Resources Business Partner.

Human Resources Business Partner 

• Reviews and approves requests for out-of-state work assignments with the appropriate Lead Administrator.
• Obtains additional approval for assignments in states which the University has not yet approved, or that are outside the United States.

Payroll Department

• Monitors payroll-related changes (including work location) in the University’s Workday system.
• Ensures payroll-related compliance for all out-of-state employees (e.g., state and local tax filings, withholding, reporting).
• Conducts periodic reviews of employees with out-of-state home and work addresses to confirm work locations, and provide reports to the University Out-of-State Work Location Committee for review and follow up.
• Reviews annual submission of out-of-state work locations and makes any payroll adjustments, as needed.
• Maintains a complete list of approved jurisdictions; the list should include withholding and SUI account numbers and registration criteria for jurisdictions where SUI liability is not yet met; the list should be available to the Committee upon request.
• Collects all information required for state employment tax registration documents. 

Tax Department

• Assists the Payroll Department with the payroll and unemployment registration process.
• Files employment tax registration documents, where required.

Office of General Counsel

• Provides final review of employment tax registration documents prior to submission.                                                                                                                               

Out-of-State Work Location Committee

• Reviews requests for work assignments and flexible work arrangements in not yet approved states and locations outside the United States.
• Provides recommendations to the Controller and to the Vice President for Human Resources & Administration for final approval.
• Reviews reports provided by the Payroll Department and recommends action.
• The Committee consists of representatives from Finance (Tax and Payroll), Human Resources, Risk Management, and the Office of General Counsel.