Last month, President Obama signed into law the Telework Enhancement Act of 2010. This law means that Federal agencies must create telework polices for all eligible employees as well as training programs for teleworkers and telework managers.

While you might be saying to yourself, this law really doesn't apply to me because I don't work for the Federal government, the law has a broader meaning for business. Government recognizes that working outside of the office is valuable.

Now pair this with the idea of flexible hours. According to a study by the Families and Work Institute (Report-The Impact of the Recession on Employers.pdf), firms are adding flexible work options such as working from home along with evening and weekend work as a way to attract and retain valuable employees. Bill Driscoll, district president for Robert Half International, was quoted in the Boston Globe as saying more firms are offering flexible hours in lieu of extra pay.

So paying attention to how this new law is implemented could be very valuable in many ways: for the business who wants a positive impact on the bottom line, for managers who want to find and keep talented employees, and for employees who are looking for some flexibility and balance.

The Telework Exchange published a report in conjunction with the new legislation providing some interesting history. But, more interesting was the section identifying the five key challenges to implementing a telework environment. The areas they sited were:

• Building Management Support
• Resistance to Change
• Measuring Productivity
• Supplying Telework Technology
• Demonstrating Return-On-Investment (ROI)

I'm not going to reprint the report here but I encourage you to check it out: Report-From Bill to Building-Next Steps for Federal Telework.pdf  The report also included some recommendations to overcome these challenges. They include management training to understand a virtual workforce, enhancements to existing technology, employee training for self-management and personal accountability.

Workshifting has covered several of these topics as well. Here are some additional resources to consider as you're putting together a flexible work plan.

Results-Based Management: Don't Workshift Without It
Looking for a Workshifting Occupation
7 Considerations for Setting Up a Home Office
4 Tips to Jumpstart Your Work Day
Project Oosouji: Clearing the Queue

And this is just a sampling of all the resources available.

The conversation about flexible time and workspace is only just starting. As more organizations recognize the value: both in cost savings and employee satisfaction, it's sure to become more common. Having the resources available to create and maintain a positive virtual workforce should be on everyone's agenda. 

It's time for state lawmakers to wake up to the fact that we live in a mobile world--one where work is a verb, not a place. Sadly, short of federal intervention, most states aren't likely to change their ways anytime soon. According to the Survey of State Tax Departments, thirty-five states currently have laws that could lead to double taxation if an employee doesn't work in the same state as his or her employer.

What lawmakers don't seem to understand is that laws that discourage mobility, discourage people from living there, businesses from locating there, and out-of-state businesses from hiring there.

Several large all-virtual employers already choose not to hire in states--such as California, West Virginia, and Rhode Island--where the regulatory environment makes it difficult to operate.

Where does the stupidity stop? If a plumber from Bucks County (PA) drives across the river to fix a leaky sink in Lambertville (NJ), does he have to file a New Jersey tax return? How about the Maryland accountant who spends a week on-site during a NJ company audit? What about an employee of a NY company who works from their NJ home on the weekend?

Workshifting strategies allow companies to hire the best and the brightest. They offer the disabled and those living in rural areas a way to increase their standard of living. They allow stay-at-home parents and caregivers continue to earn a living. They support the mobility needs of military families. And they provide the 80% of retiring Baby Boomers who want to continue working, a way to do so flexibly.

But double taxation isn't the only burden for companies that operate in mobility-challenged states. Once you're an 'employer' in a foreign state, you'll need to make sure that one-day-a-month teleworker is in compliance with that state's labor laws, workers compensation rules, ERISA regulations, and a rat's nest of complex, expensive, and impossible-to-track / impossible-to-comply-with regulations.

The easy decision, of course, will be not to go there--literally and figuratively.

Now if I was in charge of economic development in one of those few states that 'gets it,' I'd be actively seducing companies with my 21st century tax laws. And I'd be luring the best and the brightest employees who choose not to be tethered to a cubicle for the rest of their life.

For those state legislators who continue to bury their collective heads in the sand, the wake up call may just come after taxpayers have left the commonwealth.

Additional Reading on Telecommuting and Taxes:

Why You Need to Know About the Telecommuter Tax Fairness Act

Telecommuting: Don't Allow State Tax Issues to Disrupt the Connection

Photo Credit: shovelmonkey1