United States: Home Office May Qualify as an Established Place of Business
A recent court case in New York (RegenLab USA LLC v. Estar Technologies Ltd. et al., 16-cv-8771) may provide some clarity on the permanent establishment implications of companies conducting business in the US through home offices. The Southern District Court of New York found that an employee’s home office constituted a “regular and established place of business” in the state.
The Court determined that the employee’s home office was not a sporadic and incidental work environment, but a place where “business” was conducted. Given that all Eclipse employees work from home, the Court concluded that their home offices constitute physical locations of the company. The Court used the company’s actual job postings to evaluate whether a home office would constitute a place of business.