Q. "Our organization is located near a state line and some employees live across it. Do we need to take both states' labor laws into account?"
When managing a ministry near a state border HR compliance can feel like a moving target. The primary concern for most administrators or executive pastors is whether their organization's Staff Handbook needs to reflect the labor laws of every state where an employee resides.
In most cases, the answer is no. Employment law is generally governed by the location where the work is performed, not where the employee sleeps at night. If your staff members commute to your organization's physical location in one state, they are governed by that state's Department of Labor regulations. This includes everything from wage and hour laws to workers' compensation.
The "51% rule" is a helpful metric: if the majority of the work happens at the ministry's physical location, that state's laws prevail. However, ministries must remain vigilant regarding the rise of remote work. If a staff member transitions to a fully remote role based in a different state, your church may unknowingly become a multi-state employer.
This triggers requirements for out-of-state payroll tax withholding, unemployment insurance, and potentially different mandatory leave policies. To keep your operations manual clean and compliant, always document the primary work location for every position in your job descriptions.