Out of State Employment

In 2019, American University adopted the Out-of-State Staffing Policy which restricts employment at the University to those who reside in the District of Columbia, State of Maryland and Commonwealth of Virginia (DMV). The University recognizes the need to engage talented individuals who reside outside the DMV as critical to maintaining a flexible workforce. While the University is well-equipped to manage employment and tax requirements for employees residing in the DMV, it has limited infrastructure and resources to devote to compliance with the laws and requirements of many other states outside the DMV.

During the COVID pandemic, the University recognized that employees temporarily relocated to other cities to be closer to support systems. The University, like other employers, permitted this as a one-time exception to the policy, recognizing that some states had lessened restrictions on tax and other compliance matters for some period during the pandemic. This exception no longer applies, and faculty and staff are expected to deliver services from the DMV, in accordance with the Out-of-State Staffing Policy.

Three options are available to employees who are residing and delivery services (teleworking) from outside of the DMV:

Option 1

Return to DC, Maryland or Virginia to continue your employment at AU no later than the effective date of the fall workforce plan; or

Option 2

Request to transition your employment to nextSource, the University’s Employer of Record. An Employer of Record serves as the legal employer for individuals who reside and perform services for American University outside the DMV. This option is subject to approval by your department head.

Option 3

End employment with AU if returning to the DMV or nextSource employment are not viable options.

Employment Through AU’s Employer of Record, nextSource

AU has contracted with nextSource to serve as the Employer of Record for individuals  who reside and deliver services for AU outside the DMV.  

Employees who will be permanently residing and delivering services from outside the DMV may be eligible for nextSource employment through nextSource. The approval process is outlined in the Out-of-State Staff Policy.

As a nextSource employee, most aspects of working at AU will stay the same. nextSource employees will perform the duties of their current role, continue to have AU email and access to the systems that they need to do their job. nextSource provides them with a comprehensive benefit package with similar options to AU for medical, dental, life and disability coverages. Contact hrpayrollhelp@american.edu to receive a copy of their benefits guide. Benefit differences include a retirement plan option with a match lower than AU’s match, and nextSource does not provide educational benefits. nextSource has a 60-day waiting period for their benefit plans. Accordingly, AU will provide you with a lump sum pay to cover COBRA and other benefit continuation costs for this 60-day period.

Contact hrpayrollhelp@american.edu for more information.