The California Center for Jobs and the Economy today released a new study: California Workers: Modernized Telecommuting Policies to Build Equity and Reduce Costs. In response to the COVID-19 pandemic, companies around country rapidly transitioned to work-from-home options to enforce social distancing and help stop the spread of the virus.

COVID-19 and corresponding stay-at-home orders forced employers and employees to quickly adapt to telecommuting as the standard mode of working. According to recent federal data, likely more than 40 percent of workers across the nation are maintaining their household incomes through telecommuting.

The rapid shift to telecommuting has disproportionately benefitted higher-wage and salaried employees, whose jobs can be done remotely under the state’s existing labor and employment laws.  This smooth transition can be seen in the state’s income tax withholding data, which is relatively unchanged since the same time last year.  Because of the steeply progressive nature of the state’s income tax, this outcome confirms that higher wage Californians have been able to retain their jobs and household incomes more fully in the current crisis, and they have done so largely through telecommuting.

As is discussed in the report, as many as 40 percent of California workers could do their jobs entirely from home once the COVID-19 pandemic is over.  More could so on a less regular schedule, and more could telecommute in future years as technology and the nature of work continue to evolve.

However, absent actions from the state, telecommuting will continue to be a luxury that benefits primarily the higher-wage workers in the state. In fact, only 26 percent of teleworkable jobs in California are in these higher-wage occupations. Another 35 percent are in lower wage jobs (up to $50,000 average wage) that could telecommute, but have not by and large because of restrictions in state law.  In order to create equal access to telecommuting now and into the future, the state must modernize its workplace rules in order to give employers and employees flexibility they both want and in the current crisis circumstances need.

Beyond the short-term need to address equal access to telecommuting options, the state should promote long-term telecommuting as part of its climate change agenda. Telecommuting can help the state achieve its greenhouse gas and air quality emission goals across all workers and is the only option proven to reduce miles traveled and its associated emissions—and it does so without costs but instead savings that increase effective incomes for those able to use it.

• In the current crisis, likely more than 40 percent of workers are maintaining household income through telecommuting
• Post-pandemic, state workers will telecommute more
• Post-pandemic, 40 percent of all workers in California could do their jobs entirely at home
• Achieving full benefits from telecommuting depends on giving access to all eligible workers
• Telecommuting at this level furthers the state’s climate change and air quality goals
• Telecommuting provides greater flexibility for childcare arrangements, especially for lower income households, and an increase real incomes by reducing or eliminating these and other costs (such as costs associated with commuting)