Washington, DC. The employee submitted the expense for reimbursement with proper supporting documentation* (i.e., a receipt) within 30 calendar days of when it was incurred. Prior to the amendment, expense reimbursements were not addressed in the IWPCA and its regulations. Sometimes, this requirement is explicit; other times, the law can be interpreted to require the reimbursement of business expenses. State labor codes and employee reimbursement As we have reported over the past several years, California's labor code in Section 2802 requires employers to reimburse all "necessary expenditures and losses" incurred as a part of an employee's job responsibilities… – I. You’ll want to proactively account for these business expenses in your T&E budget to stay on track financially and prevent issues. New York 6. Such a claim would not include the potential recovery of liquidated damages and attorney’s fees, as are available under the IWPCA. In addition, state law … Meanwhile, some states like Illinois expressly permit employers to adopt written policies designed to reasonably control employees’ job-related expenses … XIII.4.C Travel Mileage Rates. Essentially, these are laws requiring companies to reimburse employees for “necessary expenditures” incurred on the job. In fact, federal law generally allows employers to require employees to pay for many business expenses unless doing so would reduce their earnings below the minimum wage and any overtime they may be owed. The trick to securing greater T&E compliance, Rooting out folks who don’t belong on your health plan: A 6-point dependent audit checklist, 3 costly misconceptions about biz email compromise, Collecting via email: 4 must-make moves in your subject line, 5 Tough-to-spot signs that an invoice is fake, 120 Proven Communications Tips for Today’s CFO, Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits, T&E Best Practices: Complete Guide to Ensure Compliance, Payroll Best Practices: 4 Ways to Save Time and Money, Innovative Communications Strategies: An Email Case Study, A 5-part Framework for Successful Workplace Communications. Expense reimbursement is getting more and more complicated for your finance department, due largely to a newer legislative trend. Same thing for expenses … Employer reimbursement policies may require workers to submit expense reports within a certain time frame, but the California Expense Reimbursement Law states that workers be paid for legitimate business expenses no matter when the employee submitted them and whether or not management has already approved the expenses. However, some state and local laws may require employers to bear the cost of business expenses. With CFO Daily News arriving in your inbox, you will never miss critical stories on accounting, benefits, payroll & employment law strategies. Other states, such as Illinois, Montana, New Hampshire, North Dakota, and South Dakota, have reimbursement laws similar to California, and the law in some states is a bit vague. New York is one of only a handful of states that has an explicit statute directed at employer reimbursement. Illinois was the newest addition this year. Given the sudden and rapid expansion of the remote employee workforce, and the patchwork of expense reimbursement requirements under state and federal law, employers should … In instances where the state has made policies permanent, CCHP has incorporated those policies into this interactive map tool. However, several states (including California, the District of Columbia, … XpertHR is part of the LexisNexis® Risk Solutions Group portfolio of brands. Federal law requires reimbursement only when required expenses push a worker’s earnings below minimum wage. Expense retorts: … This field is for validation purposes and should be left unchanged. First, double-check if your own state has any laws – or any legislation circulating that could lead to new rules in the near future. 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