Telecommuting
What is telecommuting and how does it differ from remote work?
Telecommuting is the practice of working from a location outside the traditional employer office, typically the employee's home, using technology to communicate. The term predates the modern remote work era (popularized in the 1970s by Jack Nilles) and is now largely synonymous with remote work or work-from-home. For HR, telecommuting raises the same compliance issues as any home-based work: multi-state tax nexus, workers' comp coverage, expense reimbursement, and equipment policy.
Telecommuting is the older term for what most employers now just call remote work. Jack Nilles coined it in 1973, and for the next 40 years it described a niche arrangement (a handful of employees working from home one or two days a week). The 2020 pandemic shift made the term obsolete in everyday usage but it persists in policy documents, IRS guidance, and some state laws. The compliance issues are the same regardless of vocabulary: where the employee actually performs work creates tax nexus and triggers state-specific rules.
Telecommuting vs. Remote Work vs. Hybrid
Telecommuting and remote work are functionally synonymous in 2026. Hybrid combines in-office and remote days. Fully remote means no required office days. Each has different policy implications.
Where the Term Still Matters
Some IRS rules and state laws use "telecommuting" as the formal term (especially around the 2020-2022 pandemic-era guidance and tax nexus rulings). Older HR policy documents may also use it. When updating policies, modernize the language while keeping any legal references intact.
Common Telecommuting HR Issues
Multi-state tax nexus when employees move. Workers' comp coverage at home offices. Expense reimbursement (mandatory in CA, IL, MA, MT, NH, NY, PA, DC). Equipment policy and IT security. See home-based worker for full detail.
Modernizing Telecommuting Policy for the 2026 Workforce
Treat telecommuting as the default work model rather than an exception. Address state-by-state compliance proactively. Build location-tracking into the HRIS. Pair with clear onboarding for remote new hires. See payroll for tax nexus mechanics.
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