American Financial Services Association

AFSA Publishes Work From Home Model Legislation

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AFSA Publishes Work From Home Model Legislation

AFSA’s State Government Affairs (SGA) team recently published model legislation that would permanently authorize employees of licensed entities to work from home without the need of a branch license. Since the start of the COVID-19 pandemic, 44 states and the District of Columbia have provided guidance allowing employees of licensees to work remotely without the need for a branch license. In addition, North Carolina and Virginia stated they will provide flexibility to licensees in order to minimize service disruptions but did not explicitly authorize remote work.

Consistent with state guidance, AFSA members have proven that their employees can work at home safely and effectively through operational adjustments. Accordingly, AFSA sent letters to state regulators in 48 states and the District of Columbia requesting permanent guidance authorizing licensees of all types to allow employees to work remotely. So far, 27 states have responded to AFSA’s letters, with 12 states indicating that permanent authorization would require a statutory change. In response, AFSA work from home initiative group drafted its model legislation, with close collaboration with state regulator trade associations and peer trade associations. AFSA’s model legislation outlines privacy and training requirements to ensure that employees of licensees perform all duties safely and effectively while working from home. AFSA’s SGA team plans to share this legislation with lawmakers in the upcoming legislative session.

AFSA’s model legislation can also be found  in the state model legislation section of its website. If you would like to join AFSA’s work from home initiative, please reach out to Edwin Portugal at eportugal@afsamail.org.

October 29th, 2020 by