What the Law Really Says About Time Theft in the Age of Remote Work

Work Law

Working from home has become the new normal for millions. Pajamas as workwear, lunch from your own fridge, and meetings with pets making guest appearances—it’s changed the landscape of how we work. But with all this freedom comes a tricky question: what exactly counts as working? And when does being a little too relaxed drift into time theft territory?

Time theft isn’t just a buzzword—it’s a real legal issue. Employers are navigating new ground, and employees are trying to stay productive without burning out. In this remote world, understanding where the legal line is drawn is more important than ever.

Law

What Is Time Theft?

Time theft happens when an employee gets paid for time they didn’t actually spend working. Traditionally, that meant things like long personal phone calls, buddy-punching time clocks, or disappearing for extended breaks. But in a remote setting, it’s a little more nuanced.

Now, time theft might include:

  • Logging into your work system but not actually working
  • Taking frequent, lengthy breaks without reporting them
  • Doing personal errands during paid hours
  • Using time-tracking software tricks to simulate activity
  • Submitting inflated hours on a timesheet

It doesn’t have to be malicious. Sometimes it’s as simple as multitasking too much or misunderstanding what “work hours” actually mean from home. But intent or not, employers are starting to take it seriously—and so are the courts.

The Legal Viewpoint

In legal terms, time theft falls under the broader umbrella of wage and hour laws. These laws exist to protect both employers and employees by making sure time worked is time paid—and that neither side is getting shortchanged.

If you’re an employee being paid by the hour (especially non-exempt under laws like the Fair Labor Standards Act in the U.S.), you’re expected to report your hours truthfully. And your employer has the right to verify them.

One landmark case that shook up the remote work world happened in Canada. An employee was fired for time theft after time-tracking software showed a major gap between logged hours and actual activity. The court ruled in favor of the employer, ordering the employee to repay wages for the time she claimed but didn’t work. It was a wake-up call for remote workers everywhere.

While laws differ by country and even state, a few key principles apply:

  • Falsifying hours can be grounds for termination
  • Employers have the right to implement monitoring tools
  • Employees must be informed of monitoring in most jurisdictions
  • Companies must still follow privacy and labor regulations when tracking time

So yes, you have rights—but so does your employer.

Monitoring and Privacy: Where’s the Line?

To combat time theft, many employers are turning to productivity tracking tools. These can include:

  • Keyboard and mouse activity trackers
  • Screenshot-capturing apps
  • Webcam check-ins
  • GPS location monitoring
  • Application and website usage logs

If this makes you squirm a little, you’re not alone. It raises serious privacy concerns. In many places, employers must disclose if they’re monitoring you. Some jurisdictions even require signed consent.

However, if you’re using company equipment or working on the clock, the expectation of full privacy drops. The general rule? If your employer is footing the bill for your time or device, they likely have legal ground to see how it’s being used—within reason.

Still, overreach is a real risk. Laws like the General Data Protection Regulation (GDPR) in Europe or certain state-level privacy laws in the U.S. (such as California’s CCPA) aim to prevent employers from going too far. Consent, transparency, and necessity are key pillars of legal workplace monitoring.

Time Theft vs. Flexibility

Here’s where it gets murky. Remote work isn’t always linear. Some people are most productive early in the morning. Others thrive late at night. Stepping away to walk the dog, pick up the kids, or cook lunch isn’t necessarily time theft—if your work gets done and your employer allows flexible hours.

This is where having a clear remote work policy matters. If you’re on a flexible schedule, and your deliverables are met, the law is generally on your side. But if you’re expected to be available from 9 to 5 and you’re watching Netflix from 1 to 3, that’s a different story.

The legal key is expectation versus reality. If your employer expects real-time availability, and you’re not delivering that without approval, it could be seen as dishonest. That’s when time theft accusations can arise—even unintentionally.

How Employers Can Protect Themselves

From the employer side, prevention is often better than reaction. Instead of heavy-handed surveillance, many are leaning into transparency and structure. That means:

  • Implementing clear timekeeping policies
  • Defining what counts as “working time”
  • Requiring regular check-ins or status updates
  • Using software with audit trails and opt-in features
  • Training managers on fair and legal remote supervision

Documentation is everything. If an employer decides to discipline or terminate an employee over suspected time theft, there needs to be evidence. Courts look for patterns, written policies, and communication.

What employers shouldn’t do is install tracking software in secret or monitor personal devices without consent. That’s a fast way to end up in a legal bind.

What Remote Workers Should Keep in Mind

For remote employees, protecting yourself starts with knowing your rights—and responsibilities. Read your contract. Understand your company’s timekeeping expectations. If you’re unclear, ask.

Good habits include:

  • Accurately logging your hours, even if you’re working irregularly
  • Being transparent about breaks or time away from your desk
  • Communicating with your manager if you’re working outside traditional hours
  • Using company-approved devices and platforms whenever possible
  • Keeping personal and work time clearly separated when on the clock

Most importantly, avoid the temptation to “game the system.” It might seem harmless to leave your computer running while you fold laundry, but if software detects zero keyboard or mouse activity for long periods, questions may be raised.

And while you might be tempted to install mouse-jigglers or browser loopers, remember that if you’re caught, the consequences can be serious—both legally and professionally.