The Fidelity Investments building in Covington. Photo provided | Fidelity Investments

What you need to know

Most full-time Fidelity employees will be mandated to return to the office full time starting September, according to a Wednesday announcement from the company.

As one of the largest employers in Covington, the move will affect not only the company’s operations but also the tax revenues of the city, which floundered following the pandemic’s institution of work-from-home policies.

Covington Mayor Ron Washington applauded the company’s decision in a written statement to LINK nky.

“This decision reflects a strong vote of confidence in our workforce and our community,” Washington said. “As one of Covington’s largest employers, Fidelity’s commitment strengthens our local economy while giving its employees the opportunity to experience all that our city has to offer.”

Not all of the employees will be affected by the change: Roles that deal with customers over the phone won’t have to return to the office full time, although they will be required to come to the office for one week out of every four weeks. Most other full-time employees will have to come back if they’re based out of the Covington office, even if they live outside of Kentucky.

The move affects all of Fidelity’s operations in Kentucky, not just Covington, and reflects changes to several targeted markets in the company’s operations around the country. Other affected markets include Boston, New Mexico and New Hampshire. Covington city tax records put the number of employees out of the company’s Covington location at 6,184, as of June 30. Fidelity corroborated that it had at least 6,000 employees but didn’t give an exact number, as of Wednesday.

Like many employers, Fidelity allowed people to work from home during the pandemic lockdowns but began gradually bringing people back into the office in September 2024 when workers were required to come to the office for two out of every four weeks for what were dubbed “connect weeks.”

“Fidelity’s belief is that being physically together creates more opportunities for a meaningful associate experience filled with connection, mentorship and learning—elements that are central to our long‑term success,” said a Fidelity spokesperson. “Fidelity is continuously evolving its ways of working and physical footprint, including plans to continue hiring and increase capacity across our regions to ensure we provide the best products and services for our customers.”

This is relevant to the city of Covington in that the institution of work-from-home polices during the pandemic led to a decline in payroll tax revenue into the city’s general fund, from which it draws most of its operating budget.

Payroll taxes are collected based on the location where work is completed, so if the employees worked for a Covington company but lived elsewhere, work-from-home polices ensured tax revenue was collected outside of Covington.

In time, this led to a deficit in the city’s general fund, although other city funds that don’t rely on tax revenue were not affected. Since then, the city commission has re-apportioned emergency COVID dollars and has introduced other cost-cutting measures to close the gap. Fiscal year 2025 was the first year since fiscal year 2021 the general fund didn’t have a deficit, but this was due largely to the reapportionment of federal COVID dollars.

Financial records from the city indicate that just over $6 million in revenue came from COVID funding in fiscal year 2025. That federal program ends this year, and the money won’t be replenished once it’s spent, meaning that Covington’s general fund risks being back in the hole in fiscal year 2026 and onward. Fiscal years run from July 1 to June 30.

The mandated return-to-office policy will likely bolster the payroll tax revenue for the city. With the sun-setting of COVID emergency funds, increasing tax revenue through economic development, such as the Central Riverfront site, will continue to be the city’s primary strategy in keeping the gap closed long term.