legislation and in court, it’s important for Finance to stay vigilant and As of Jan. 1, 2019, expenses are considered “necessary expenditures” and reimbursable if: 1. Sign up for a free CFO Daily News membership and get our newsletter! If an employer fails to … New York 6. As states continue to address expense reimbursement in If your work requires you … Federal law does not require employers to reimburse employees for expenses incidental to carrying on the employer's business. Which states are at the forefront of this legislative It’s also a good idea to make sure others involved in T&E (your A/P staffers, expense report approvers, etc.) documentation doesn’t exist, is missing or is lost. Rather than simply regurgitating the day’s headlines, CFO Daily News delivers actionable insights, helping Finance execs understand what Finance trends mean to their business. Employee Expense Reimbursement > 4. Therefore, all commissions paid to the employees here, whether wage commissions or expense commissions, must be considered “wages” as that term is used in Article 6 of the Labor Law. The handbook addresses most common travel situations but is not intended to be a substitute for knowledge of the existing travel laws and regulations. California and five other states have enacted expense-reimbursement statutes. In 2019, Illinois imposed expense reimbursement on employers, mandating they must reimburse for all “necessary expenditures.” The law’s modeled after California’s law … With CFO Daily News arriving in your inbox, you will never miss critical stories on accounting, benefits, payroll & employment law strategies. Can I file a lawsuit to get unpaid travel expenses reimbursed in California? Such a claim would not include the potential recovery of liquidated damages and attorney’s fees, as are available under the IWPCA. Other jurisdictions that already have expense reimbursement laws on the books include: Generally, your department knows what typical business expenses states will expect to be reimbursed, like transportation, lodging, meals and entertainment. *Note: Illinois says the employee can offer a signed reimbursement of employees for allowable travel expenses incurred during travel on official state business. California’s law has been interpreted to require reimbursement of a “reasonable percentage” of an employee’s monthly bill for Internet or mobile device data plan, even if the employee does not incur any additional cost for using the Internet or mobile device … But it’ll be important to watch as courts decide how to interpret these laws and make cas… Discover the power of XpertHR employment law guidance and best practice at your fingertips with a free trial. For example, California companies required to pay for employees’ cell phone bills now need to allot for this massive expenditure. Recently, Illinois modified its Wage Payment and Collection Act to include expense reimbursement rules. As mentioned, these new laws may require your department to tweak its current T&E policies and practices to align with state-specific rules. 2. However, some state and local laws may require employers to bear the cost of business expenses. Other jurisdictions that already have expense reimbursement laws on the books include: 1. Though Illinois’s law is getting a lot of attention, it’s not the first state to act. Employers should be aware that federal and state laws have different rules regarding reimbursement for expenses incurred by employees with remote work arrangements. 275:57 Reimbursement of Employee Expenses. However, some states have their own laws surrounding expense reimbursement. The employee submitted the expense for reimbursement with proper supporting documentation* (i.e., a receipt) within 30 calendar days of when it was incurred. View our privacy policy, privacy policy (California), cookie policy and supported browsers. In accordance with current state policy, employees may be eligible to receive reimbursement for expenses … benefits and wage supplements (the latter including reimbursement of expenses, see Labor Law §198-c(2)) . Who is submitting the receipt? Finally! This field is for validation purposes and should be left unchanged. 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. Your company required or approved the employee to make the expense. In addition, state law … Though Illinois’s law is getting a lot of attention, it’s not the first state to act. Prior to the amendment, expense reimbursements were not addressed in the IWPCA and its regulations. Reimbursement Obligations. Alaska, California, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Montana, New Hampshire, New York, North Dakota, Pennsylvania, South Dakota, and Washington, DC all have enacted statutes which bear on expense reimbursement. California 2. CFO Daily News, part of the SuccessFuel Network, provides the latest Finance and employment law news for Finance professionals in the trenches of small-to-medium-sized businesses. Courts in the Golden State have also said companies should pay for similar items like Internet expenses, data plans and other computing expenses. proactive. Meanwhile, some states like Illinois expressly permit employers to adopt written policies designed to reasonably control employees’ job-related expenses … XpertHR is part of the LexisNexis® Risk Solutions Group portfolio of brands. The law is intended to prevent employers from passing on their operating expenses … Some states (like California, Illinois, and Montana) have more robust reimbursement laws in that employers are required to reimburse employees for all “necessary expenditures or losses” or “business expenses” incurred … Sometimes, this requirement is explicit; other times, the law can be interpreted to require the reimbursement of business expenses. 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. However, several states (including California, the District of Columbia, … What counts as “necessary” creates a huge and costly exposure, as your company could potentially have to pay for a lot more. Washington, DC. The request will be accompanied by the proposed plan of operation and the specific duties and responsibilities of all personnel for which reimbursement of salaries and travel expense … For example: Companies usually mandate receipts. The materials and information included in the XpertHR service are provided for reference purposes only. that are reasonably incurred in accordance with job responsibilities. You’ll need to decide how to address and communicate any changes companywide. In instances where the state has made policies permanent, CCHP has incorporated those policies into this interactive map tool. However, some state and local laws may require employers to bear the cost of business expenses. Iowa 3. Current State Laws & Reimbursement Policies Search by Filter 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 … This is a chart summarizing general reimbursement … Chart cells for which there are no requirements regarding business expense indemnification are marked N/A. An employee claiming he or she was not properly reimbursed would have to characterize it as a breach-of-contract claim. However, unlike the Illinois law, California law does not enable employers to maintain parameters of expense … Related issues are covered elsewhere, including: When employees work remotely, an employer may wish to use a Telecommuting Policy to establish expectations around the reimbursement of certain business-related expenses such as phone calls, shipping costs, etc. Generally, your department knows what typical business expenses states will expect to be reimbursed, like transportation, lodging, meals and entertainment. An employee who incurs expenses in connection with his or her employment and at the request of the employer, except those expenses normally borne by the employee as a precondition of employment, which are not paid for by wages, cash advance, or other means from the employer, shall be reimbursed for the payment of the expenses … You will receive a link to create a new password via email. 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