Human Resources Policies

VII-6.11(B)

UMB Policy on Out-of-State Work

Human Resources   |   Approved August 5, 2021


Responsible VP/AVP

Dawn M. Rhodes, DBA, MBA


Applies to Faculty, Staff


Revision History

Approved August 5, 2021 to become effective August 15, 2021.


Purpose

The purpose of the Policy on Out-of-State Work is to avoid or properly mitigate the risk to UMB and to its faculty and staff when they regularly perform work in states other than Maryland and to clarify that Out-of-State Work must be authorized in advance.

Policy Statement

I. Policy Statement

The University of Maryland, Baltimore (UMB) is part of the University System of Maryland, a state agency of Maryland.  The employment of Maryland residents by UMB to the extent feasible is an expectation of the State of Maryland.  Generally UMB is best able to serve its students, clients, patients, neighbors, and the State of Maryland by employing personnel who are physically present in Maryland and able to participate directly in the research, education and service activities of UMB in Maryland.

It is recognized that UMB undertakes research, education and service activities carried out in places other than Maryland, requiring that some personnel live and work out of state as a condition of employment.

II. Purpose

The purpose of the Policy on Out-of-State Work is to avoid or properly mitigate the risk to UMB and to its faculty and staff when they regularly perform work in states other than Maryland and to clarify that Out-of-State Work must be authorized in advance.

III. Applicability

This Policy applies to all employment classifications for faculty and staff. This Policy is not intended to apply to occasional, approved work-related travel.

IV. Risks and Considerations

There are significant risks and other considerations associated with employees working out of state:

A. A state may require UMB to register to do business in that state if UMB authorizes an employee to perform work in that state. In addition to the administrative burden of registration, this may make UMB subject to suit in the other state and subject to laws of the other state that otherwise would not apply to UMB.

B. UMB does not have liability insurance protecting it or its out-of-state workers from claims and litigation arising in other states. The State of Maryland lawyers in the Office of the Attorney General of Maryland who represent UMB and its employees in court cases do not work in other States, so litigation costs are a risk for UMB and its employees.

C. UMB’s worker’s compensation insurance is a State of Maryland Program. UMB is not always able to obtain special workers’ compensation insurance in another state to protect UMB employees with respect to work-related injuries in that state. Also, even if UMB can obtain workers’ compensation insurance in another state, the administrative burden of securing out-of-state workers’ compensation coverage and benefits may be significant (e.g., requiring additional, ongoing reporting).  The cost of workers’ compensation insurance in other states is not predictable.  Penalties for not securing such insurance are a financial risk to UMB.

D. UMB, as an employer, may be required to follow the state or local employment and tax laws of an out of state location in which an employee’s work is authorized or required to be performed. These requirements can include:

- Workers’ compensation insurance

- Unemployment insurance

- State employment laws (e.g., wage and hour laws)

- State employee benefits laws (e.g., mandated paid leave requirements such as family medical leave or disability benefits)

- Payroll considerations (e.g., state and local taxation, mandatory contributions to state benefits plans, mandatory pay dates that differ from CPB’s schedule)

- Occupational health and safety standards

- State and local reporting requirements

- Professional licensing requirement for work in another state

E. Employment laws change frequently. Risks of non-compliant out of state employment are great, and UMB may not be prepared to adapt to new laws of other states or to bear the financial burdens of providing benefits required in other states.

V. Decision making criteria for approving out of state workers

Employing an individual who regularly works out of state or temporarily retaining an existing employee who relocates out of state may be appropriate under certain circumstances.

A. Conditions for Approval of Regular Out-of-State Work:

A proposal that UMB faculty or staff regularly live and work out of state as a condition of employment must be reviewed by Human Resources (HR) and ultimately approved by the Senior Vice President of Administration and Finance (VPAF) with a recommendation from the Provost where appropriate (i.e., faculty are involved).  UMB will consider approval of regular out-of-state work if: 

1. The position requires performance of activity (e.g., field research) in another state and the risks and considerations of maintaining employees in that state can be accounted for and supported (financially and legally); or

2. The position is an operationally critical position that requires a highly specialized body of knowledge for which UMB has experienced retention and recruitment problems and the risks and considerations of employing the out of state employee can be accounted for and supported (financially and legally).

B. Special Considerations for Telework:

1. Employees who regularly work in the State of Maryland may telework from the District of Columbia or one of the states that are contiguous to Maryland: Delaware, Pennsylvania, Virginia, and West Virginia. Approval of telework from one of those states or the District is conditioned upon UMB’s continued ability to meet employment law expectations of the District or the state.  These employment law expectations may change from time to time.

a. For Staff, these arrangements must be documented in an approved Telework Agreement and are subject to all other conditions of UMB’s Policy on Telework.

b. For Faculty, these arrangements must be consistent with workload expectations and any faculty policies or procedures imposed by the faculty member’s school and approved by the Dean with notice to the Provost.

2. Faculty who regularly work in the State of Maryland but who wish to telework on a part-time basis (no more than two days per week) from an out-of-state location not described in V(B)(1) above may be approved for such telework where the out-of-state telework arrangement has been approved by the faculty member’s Dean with notice to the Provost, and Human Resources has confirmed that the out-of-state location would not trigger a denial by UMB as detailed in VIII below.

C. Conditions for Approval of Temporary Out-of-State Work (Relocating Employees):

1. If a current Exempt employee (faculty or staff) permanently relocates out of state for personal reasons, UMB will consider approving the temporary retention for a period no longer than 12 months after relocation of the employee if:

a. The employee’s supervisor and the relevant Dean or Vice President support approval, have determined that the work of the employee can be performed remotely without unbudgeted expense to the administrative unit or school, and have determined that retaining the employee on a temporary basis is critical to the continuity of important UMB functions while the department actively seeks a replacement;

b. The employee agrees to convert to a contingent status and executes an appropriate employee agreement (contingent 2 contract for staff; non-tenure track appointment letter for faculty);

c. The employee will not be providing remote supervision to staff located in Maryland; and

d. HR has confirmed UMB has workers’ compensation reciprocity with the other state, and the other state does not require UMB to offer statutory benefits that are not already provided by the State of Maryland employee benefit plans available to University System of Maryland employees.

D. Conditions for Approval of Faculty Out-of-State Work on a Temporary Basis:

If a faculty member temporarily relocates out of state for reasons that benefit UMB (e.g., out-of-state sabbatical, requirement of a grant or contract to UMB, summer research, visiting professorship), the out of state work arrangement may be approved as follows:

1. The Dean may approve temporary out-of-state work for 90 days or less (i.e., summer research). Approvals should be reported to the Provost.

2. The Provost in consultation with the VPAF may approve temporary out-of-state work for more than 90 days (e.g., out-of-state sabbatical), provided that the relocation is for no longer than 12 months, the temporary relocation clearly benefits UMB, and the request has the recommendation of the faculty member’s dean.

VI. Approval Process for Out-of-State Work

A. Regular Out-of-State Work

1. Positions for UMB faculty or staff who will be regularly working out of state as a condition of employment pursuant to Paragraph V(A) above must first be reviewed and approved by the school or administrative unit’s Chair/Division Head and Dean/Vice President (or designee).

- Schools and Administrative Units may reach out to Human Resources for guidance.

- Approval should be consistent with the Conditions for Approval stated in this Policy.

2. With support from the school or administrative unit concerned, a position that will be regularly performed out of state must be reviewed by Human Resources and approved by the VPAF and the Provost (for a faculty position).

- HR may consult the Dean or Vice President about additional costs and liabilities that the school or administrative unit may be required to cover if the request is approved. 

- The VPAF or Provost may impose additional conditions to mitigate administrative burdens and legal and financial risks.

B. Temporary Out-of-State Work (Relocating Employees)

1. Requests to retain temporarily a current employee who is relocating out of state pursuant to Paragraph V(C) above must first be reviewed and approved by the school or administrative unit’s Chair/Division Head and Dean/Vice President (or designee).

2. With support from the school or administrative unit, the request to retain temporarily a relocating employee must be reviewed by Human Resources to determine whether:

- The stated purpose for temporarily retaining the employee is consistent with the Conditions for Approval stated in this Policy;

- The employee will not be providing remote supervision to staff located in Maryland;

- UMB has workers’ compensation reciprocity with the state to which the employee is relocating and that state requires employee benefits similar to Maryland’s; and

- The employee is converted to a contingent status for a period no more than 12 months from the date of relocation.

VII. Additional Costs and Considerations:

Due to the legal and financial risks and uncertainties related to employment of out of state workers, even where out of state employment can be justified, the VPAF or designee may require the department to be responsible for any UMB expenses associated with additional administrative risks and burdens. 

A. The VPAF or designee may require that the employee be hired by an employment agency in the out of state worker’s locale. UMB, through Procurement Services, would contract for personnel services with the local agency and shift all of the employer responsibilities and identified risks to the local agency. The employee would no longer be eligible for UMB benefits and would be required to execute a binding waiver of benefits. 

B. The VPAF may require that expenses of additional employer benefits be met by the School or Unit requesting approval for out of state work.

C. For a position involving access to secure information, the VPAF or designee may require an inspection and certification of the proposed worksite and security systems for equipment proposed to be used by the remote worker.

D. Approvals cannot be regarded as permanent. As state laws and regulations change, UMB, at the discretion of the VPAF or designee, may rescind or modify approval to perform out-of-state work.

E. Employees working out of state as of the effective date of this Policy must be considered for approval under the conditions of this Policy. If out of state work is not approved, appropriate actions will be taken to wind up the out of state employment.

VIII. Denials

UMB may deny requests to allow employees to work out of state in any of the following circumstances:

A. UMB does not have workers’ compensation reciprocity with the jurisdiction in question.

- If an activity itself is required to be performed in another state (e.g., related to an ongoing grant), and workers’ compensation reciprocity is not available in the state where the work is required to be performed, the department may be offered the option of paying for a separate workers’ compensation policy and any associated administrative cost.

B. State or local laws of the out-of-state work would entitle the out-of-state worker to fringe benefits that are not available to State of Maryland employees (e.g., mandated accrual of sick leave or other leave at a rate higher than provided by the State of Maryland/University System of Maryland).

- If an activity itself is required to be performed in another state (e.g., related to an ongoing grant), the department may be offered the option of utilizing an out-of-state employment agency as described in VII(A).

C. Any other good cause identified by the VPAF or designee (e.g., the nature of the remote worker’s job carries an increased exposure to lawsuits and liability claims or the administrative cost and financial burden outweigh the benefits).

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