Legal Question in Business Law in California

Giving you a fully-researched and reliable answer would probably entail a multi-state survey of statutes and rules. There is also the question of where you owe payroll taxes under state law. I believe the railroad industry apportions crew wages between states for tax purposes. However, if you have one employee and a small business, I'd say you are reasonably safe in negotiating the work rules, time off, etc. with the employee and then doing payroll based on the rules of the state where he or she resides. A contract with the involved individual which was bilaterally developed and makes both parties happy is a pretty fair safety device. Obviously, you'll be well above minimum wage. Ask a trucker about maximum on-duty and minimum rest rules.