Remote workers: When do they count for local economic development incentives?

Published for Community and Economic Development (CED) on December 15, 2022.

<p>“Remote work is here to stay,” says a 2022 Forbes article. Research by McKinsey & Company released in June 2022 reveals that 58 percent of Americans reported having the opportunity to work from home “at least one day a week,” and 35 percent had the option to work from home “five days a week.”</p> <p>According to Pew Research, the move to remote or hybrid work is not universal: “Most U.S. workers (60%) don’t have jobs that can be done from home, and others who do have these types of jobs are going into their workplace at least sometimes. For a large majority of these workers, their jobs continue to involve at least some in-person interaction with others at their workplace.”</p> <p>The shift to remote work, whether universal or not, represents a significant challenge for public officials focused on economic development. It affects where and how much retail and office space is constructed in our communities. It has altered transportation use and the daily commute. And for local governments engaged in business location incentive negotiations with private employers, the prospect of remote or hybrid workers must now be explicitly addressed.</p> <p>Constitutional context</p> <p>Any discussion about economic development incentives must begin with the state constitution. Local government elected officials and all attorneys have sworn an oath to uphold the state constitution, which is the supreme law of the land. All statutes enacted by the General Assembly must be interpreted in a way that does not violate the state constitution. Thus, as a threshold matter, the constitutional limitations on business location incentives must be addressed.</p> <p>The North [...]</p>