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

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 -

When Employees Work Out of State - Zenefits

Dawn Nott
Director, HR
Posted on Sept. 3, 2015, 8:31 a.m.
Disclaimer: The answers and information on HR Answers serve as basic guidelines and are for informational purposes only. While our goal is always to provide useful content, we are unable to provide legal, tax, or fact-specific human resources advice and encourage you to speak with your legal counsel, tax advisor, or human resources professional to understand how this information applies to you.