NY Defends Remote Worker Tax as Telework Surges

Cardozo Law professor's long-running case against state's tax policy heads to appeals court

Feb. 26, 2026 at 3:31pm

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New York's tax department argued in an appeals court brief that its method for taxing interstate remote workers is more relevant than ever as teleworking becomes more prevalent, responding to a case brought by Cardozo Law School professor Edward Zelinsky. Zelinsky is appealing a tax tribunal's ruling that the state properly taxed his wages earned while working from his Connecticut home when pandemic restrictions barred him from accessing the school's Manhattan campus, the latest move in his long-running crusade against the state's tax policy.

Why it matters

The case highlights the ongoing debate over how states should tax remote workers, an issue that has become increasingly important as the COVID-19 pandemic has accelerated the shift to telework. Zelinsky has long argued that New York's 'convenience of the employer' rule, which allows the state to tax nonresidents' income earned outside its borders, is unconstitutional.

The details

In its brief, the New York tax department argued that its policy for taxing interstate remote workers is more relevant than ever as teleworking becomes more common. The department is defending its position in Zelinsky's appeal of a tax tribunal's ruling that the state properly taxed his wages earned from his Connecticut home during the pandemic. Zelinsky, a Cardozo Law professor, has been challenging the state's 'convenience of the employer' rule for decades, arguing it is unconstitutional.

  • In 2020, COVID-19 pandemic restrictions barred Zelinsky from accessing Cardozo's Manhattan campus.
  • In 2021, a New York tax tribunal ruled the state properly taxed Zelinsky's wages earned from his Connecticut home.

The players

Edward Zelinsky

A Cardozo Law School professor who has long challenged New York's 'convenience of the employer' rule for taxing nonresidents' income earned outside the state.

New York State Tax Department

The state agency defending its policy for taxing interstate remote workers, arguing it is more relevant than ever as teleworking becomes more prevalent.

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What they’re saying

“New York's method for taxing interstate remote workers is more relevant than ever as teleworking becomes more prevalent.”

— New York State Tax Department (bloomberglaw.com)

What’s next

The New York Supreme Court, Appellate Division, Third Department will hear Zelinsky's appeal of the tax tribunal's ruling.

The takeaway

This case underscores the ongoing debate over how states should tax remote workers, an issue that has become increasingly important as the COVID-19 pandemic has accelerated the shift to telework. The outcome could have significant implications for how states approach taxing nonresidents' income earned outside their borders.