Companies issuing return to office orders continue to dominate the headlines in 2025, as more companies like JPMorgan, Ford and even TikTok are mandating their employees to return to work from the office [1].
The move is causing disruptions across industries, but on a personal level, many employees who were hired during the pandemic in a fully-remote capacity are now caught in a double-bind. Can their companies enforce an RTO order if they were hired under a remote agreement?
This is the situation Jake, 46, faces. He lives in Tulsa, Oklahoma and works for a Silicon Valley tech firm. When he was hired in 2022, his offer letter stated that he would be fully remote. Now, his company has issued a sweeping return to office mandate, but he doesn’t know where that leaves him. Is he obliged to move to California? Should he simply cut his losses and find a new job? Will that even be possible in this economy?
Here’s what’s possible, including his legal rights.
Jake’s (few) legal options
Jake’s company has advised their employees that if they fail to comply with the RTO mandate by the start of next year, they will be fired. While this may seem like a poor — or even discriminatory — reason for firing an employee, it’s unfortunately perfectly legal [2]. Most states in the U.S. operate on an at-will employment law, which means employers can terminate their employees for any legal reason, at any time in their employment, without facing liabilities [3]. It also means that a company can update an employee’s terms of employment without notice, which is what has happened in Jake’s case.
While there may be rare examples where return-to-office mandates qualify as harassment or discrimination, such as when an employee has a disability that was disclosed to the employer as a reason to work from home, in general most employers are perfectly within their legal rights to demand you work from their office, even if you were hired as fully remote.
As Jake does not require accommodation for a disability, his only legal recourse would be if his employment contract specifically states that his work is a remote position and the contract also includes a severance provision or a similar clause that guarantees his employer would compensate him in the event his employment was terminated.
Since his employer is enforcing the mandate across the company, it seems unlikely that his employment contract includes this clause, but he should carefully review and rule out that he specifically isn’t entitled to any severance or damages.
For those who are considering taking a fully-remote job, it may be worthwhile to negotiate for this clause in your employment contract at the start to protect you from a similar circumstance in the future.
What can Jake do?
In the U.S., employers are free to set their own workplace policies and this includes the location, time and processes of your work [2]. Jake’s company is within their rights to terminate his employment and hire someone who can work in their office location.
However, Jake can attempt to negotiate with his boss and the company’s HR department, pointing out that he was hired as a fully-remote worker and that the team has known he is located in another state from the very beginning. Jake can point to his proven track record as a highly productive and valuable employee (even while working remotely). He can also call out that he is in a specialized role and there aren’t any others in the company who could take over his work without completing extensive training.
This may be a solid option if Jake’s company is generally open to making exceptions for some employees. He may negotiate an arrangement where he travels to the office monthly or quarterly to meet with his team, for example. He should ensure that his employment contract is updated going forward to protect his job in the event of a change of leadership, a takeover or merger, or any other attempt to change the mandated rules.
While many companies that are mandating RTO work are still eager to retain their employees (and their legacy knowledge) and are offering hybrid working options or covering child care and commuting costs for employees, many companies may be using RTO mandates as a way to trim headcount and costs, while minimizing severance payouts [4].
Voluntary attrition
Voluntary attrition can save on headcount and other costs, thereby avoiding the necessity of layoffs and bad publicity that often follows such announcements.
So while quitting may seem like a solid way to ‘stick it to the man,’ the writer warns that leaving your job in reaction to RTO may be playing into the company’s ultimate aim with this announcement.
If you find yourself in a similar position to Jake, try to hang on in your current role as long as you can, preparing for possible unemployment in the meantime, until you have found a new job. If Jake is laid off, he may be eligible for unemployment insurance. If he quits, he won’t be [5].
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Protecting your finances
With more companies opting for hybrid or fully in-office work styles, employees who favor remote work are advised to keep their options open in terms of employment.
Also remember that frequent job turnover is the new norm and that you may change jobs every few years in your career. Data from the Bureau of Labor Statistics shows that the median job tenure in January 2024 was just 3.9 years, with younger workers staying in roles for even less time [6]. Since you’re likely to change jobs frequently, always be on the lookout for your next role and don’t get too comfortable in your current career — especially if you’re looking to stay remote.
You should also be financially prepared for changes in your job circumstances — especially if you’re part of a high-turnover industry. Here are steps you can take to stay prepared:
- Save six months of expenses in an emergency fund. This will keep you on solid financial ground while you look for a new job, which can take several months in a slow job market.
- Avoid taking on high-debt investments like a mortgage if you’re in a precarious labor market. Getting laid off may mean that you won’t qualify for a mortgage if you’re house-hunting.
- Stay as debt-free as you can, as borrowing money when you’re unemployed will eat into your emergency savings.
- Stay up to date with your skills and look for new training courses you can take to remain relevant. Bonus if you can get your current employer to cover the costs of the courses.
- Always keep your LinkedIn and other networking platforms, including your portfolio, up to date.
- Review and refresh your resume every six months with new skills and accomplishments in your current role.
- Attend networking events and keep in touch with former colleagues to keep your network engaged.
- Keep in touch with recruiters in your industry so that you’re top of mind when new roles open up.
Article sources
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[1]. Business Insider. “The list of major companies requiring employees to return to the office, from JPMorgan and TikTok to Ford”
[2]. Halunen Law. “Back to work: can your employer force you to return to the office?”
[3]. upcounsel. “What States Are Not At Will Employment & Key Exceptions”
[4]. Fortune. “Bosses admit they’re using return-to-office mandates to trim down teams—without needing to announce layoffs”
[5]. Social Security. “Unemployment insurance”
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
