A recent Plain Dealer article examined the legal issues for employers who allow employees to work from home. See Taking a Big Risk by Alison Grant, The Plain Dealer, Feb. 4, 2007. The issues include ensuring compliance with wage and hour laws; workplace safety and worker's compensation; privacy of employee's home computers and trade secret issues. For more articles on legal issues involving work-at-home employees see:
Telecommuters Are Reaching Out to Sue Their Employers by Sheri Qualters, The National Law Journal, Dec. 15, 2006.
Telecommuting and Outsourcing Can Present Challenges for Employers and Employees Alike, Findlaw.com, Sept 10, 2001.
Emergency Preparedness Includes Consideration of a Work-at-Home Policy Vedder Price Labor Law Bulletin, Dec. 2006.
Working at Home at Your Own Risk: Employer Liability for Teleworkers Under the Occupational Safety and Health Act of 1970 by Kelli Dutrow, Vol. 18 No. 4, Georgia State University Law Review, Summer 2002.
There is a book called "The Law of Telecommuting" by Nicole Belson Goluboff, pubilshed by ALI/ABA, with 2004 supplement. This book is available at the Cleveland Law Library.