In most cases with remote employees, you need to follow the laws of the state the employee works in. Aspects such as minimum wage, overtime, paid sick leave, paid leave, payout of vacation at termination, acceptable payroll deductions, and protected groups follow the laws of the state where the employee works.
However, laws such as enforcing restrictive covenants (i.e., non-competes and non-solicitation) may fall under either state's jurisdiction depending on legal precedent.
As with differences between state and federal law, you must defer to the law which most favors the employee. However, you are allowed to apply a more generous standard to all employees if you find it easier to manage.
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