The Evolution of Remote Work

Remote work has surged in popularity in recent years, transforming from a pandemic necessity to a mainstream practice. Many organizations now embrace hybrid or fully remote models to attract and retain top talent. However, this shift brings challenges, particularly in wage-and-hour compliance, such as tracking hours and ensuring proper overtime pay.

A Landmark Legal Decision

On September 4, 2025, the U.S. District Court for the Southern District of Ohio issued a pivotal opinion in Lott v. Recker Consulting, LLC. This Fair Labor Standards Act (FLSA) collective action involved over 130 remote Patient Care Associates (PCAs) who were required to be in a "call-ready" state at shift start and after unpaid meal breaks. Preparatory activities included turning on computers, logging in, and opening programs, raising the question of whether these tasks are compensable work time.

Defining the Workday for Remote Employees

The court posed critical questions: When does the workday begin and end for remote workers? Is it when they sit down, turn on their computer, or start their first task? Judge Douglas R. Cole ruled that the workday starts when an employee opens and begins using a program integral to their principal duties, and ends when they close the last such program.

Key Legal Reasoning

For an activity to be compensable, it must be both integral and indispensable to the employee's main work. The court found that activities like turning on the computer, logging in, dual-authenticating, accessing VPNs, and shutting down were preliminary or postliminary—indispensable but not integral to answering calls. In contrast, accessing phone systems, workflow tools, or client EMR systems was deemed compensable, as these are core to the job.

Implications and Regional Variations

This decision contrasts with broader interpretations from the Ninth and Tenth Circuits, which consider "booting up" as a principal activity. Employers should note that Lott is non-binding outside its jurisdiction and must consider local laws. To mitigate risks, define compensable activities clearly, audit timekeeping policies, and stay updated on evolving legal standards in the remote work era.