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115,9.5; Mont. -LGK'rJ;nvmhH^ H`vg9 v2XfK:oLX`|u*0 $m7\Po,X-Xal-PV:(5#e)P~w)t9Zpm[L}N~N+3rg'L14WIB V00'B%&e|4(b?%iCX`:mIBf%}ap/YOpK+5cU&y=^gPDG '!JBE9yDZ3d_ Dr`[)# ]0IYw!lM75t|IEU53J&KsEs!1lv=T>1K^-.- &xI%#ct?>b/P 'M z21,uq jU +8)#?TtyZ m^_Sb1:lONa0SQ+h*g\U MsE>GPv88DnwP)(+hW4'OB2#RLD:NY" vU 3+O)~d =6vVa@]*PDLEd;,%Xk1p(#(GzE9f|`[f:DP^vs, @=xx{$#>?vD&2yW^_(hmhw/ Calculating a dollar amount to provide an employee based on a fixed number is much easier than trying to predict an employees printer paper cost per month. When employees must use their personal cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. Last Updated: March 29, 2023 | Read Time: 15 min. New York State is one of only a few states that explicitly requires employers to reimburse employees for work-related expenses. Cochran v. Schwan's Home Serv., Inc., 228 Cal. Public Utility Law Project of New York 194 Washington Avenue - Suite 320. Illinois' law is slightly more limited in scope than California's expense reimbursement law. consumable supplies required in the course of that employment., for all that he necessarily expends or loses in direct consequence of the discharge of his duties as such or of his obedience to the directions of the employer., 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 within 30 days of the presentation by the employee of proof of payment.. An employer shall indemnify the employers employee, except as prescribed in section 34-02-02, for all that the employee necessarily expends or loses in direct consequence of the discharge of the employees duties.. While a remote work model has key benefits for employers and employees, there are additional considerations, such as costs for employees' laptops, printers, desks, postage, telephone and internet, and office supplies such as paper and ink. For example, California allows an employee up to three years to submit a reimbursement request. Schedule a call with a personalized benefits advisor today to see how employee stipends can help your organization offer remote work benefits. You'll want to incorporate anything you're legally required to reimburse employees for. Return unsubstantiated amounts: Any excess reimbursements or allowances must be returned within a reasonable time (120 days). (c) For purposes of this section, the term necessary expenditures or losses shall include all reasonable costs, including, but not limited to, attorneys fees incurred by the employee enforcing the rights granted by this section. Interestingly, this law has been interpreted to require employers to reimburse employees for a reasonable percentage of their monthly internet or mobile telephone bill for work-related uses, even. Massachusetts General Laws Part I, Title XXI, Chapter 149, Section 1488. The employee can also ask the Labor Commissioner to cite the employer or anyone acting on the employers behalf under Labor Code Section 2802(d). San Diego, CA, 92108 A: An employer is likely not responsible for the entire personal cell phone bill of an employee simply because that employee uses his/her personal cell phone for work purposes. Retain and coach your workforce with career planning. 2 0 obj all that the employee necessarily expends or loses in direct consequence of the discharge of the employees duties.. Only authorized expenses by the employer must be reimbursed. This serves several purposes. It does not matter whether the phone bill is paid for by a third person, or at all. A necessary expense is anything required for the performance of an employees job. By way of a recent amendment, the Illinois Wage Payment and Collection Act now requires employers with employees working in the State to reimburse their employees "for all necessary expenditures or losses incurred by the employee within the employee's scope of employment and directly related to services performed for the employer." Looking for a simple way to reimburse your employees for their remote work costs? Ann 260.3. 2021), Reconceptualizing the Importance of Place (Mar. Washington State Department of Labor & Industries15. 5. https://casetext.com/regulation/district-of-columbia-administrative-code/title-7-employment-benefits/chapter-7-9-wage-hour-rules/rule-7-910-tools, 6. https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2402&ChapterID=68, 7. https://www.legis.iowa.gov/docs/code/91A.3.pdf, 8. https://malegislature.gov/laws/generallaws/parti/titlexxi/chapter149/section148, 9. https://www.revisor.mn.gov/statutes/cite/177.24, 10. https://leg.mt.gov/bills/1995/mca/39/2/39-2-701.htm, 11. https://casetext.com/statute/new-hampshire-revised-statutes/title-23-labor/chapter-275-protective-legislation/reimbursement-of-employee-expenses/section-27557-reimbursement-of-employee-expenses, 12. https://newyork.public.law/laws/n.y._labor_law_section_198-c, 13. https://casetext.com/statute/north-dakota-century-code/title-34-labor-and-employment/chapter-34-02-obligations-of-employer-and-employee/section-34-02-01-employer-must-indemnify-employee-for-losses-and-expenses-exception, 14. https://sdlegislature.gov/Statutes/Codified_Laws/2077532, 15. https://lni.wa.gov/workers-rights/wages/getting-paid/, 16. http://www.seattle.gov/laborstandards/ordinances/wage-theft, 17. https://www.reuters.com/legal/government/amazon-sued-over-employees-remote-work-costs-during-covid-19-pandemic-2022-03-25/. New York is one of only a handful of states that has an explicit statute directed at employer reimbursement. Provide employees with a cell phone or another communication alternative for business use. There is no federal requirement to reimburse employees for business-related expenses. The common practice that is evolving is to provide a flat monthly stipend and inform employees in writing that employees may submit expense reimbursement requests to the extent that the stipend does not otherwise cover their business internet and cell phone usage. When developing and implementing a policy, employees need to be treated equally in that they all need to be reimbursed for work related phone use. Legal analysis to be used to determine if evidence supports a claim of retaliation. Control costs and mitigate risk with accurate timekeeping. Omnizant - View site in new window, Age Discrimination in Employment Act (ADEA), Worker Adjustment and Retraining Notification (WARN), Understanding New Yorks Statutes of Limitations, New York Employers Paying Biweekly Hit with Wage Class Actions, Overtime Pay Mandate for Six-Figure Earners to Spur Litigation, Signs that Someone Is Sexually Harassing a Co-Worker, Why Telling Your Co-worker Isnt the Best Choice to Report Sexual Harassment, Signs that Someone Is the Victim of Sexual Harassment, Common Wage & Hour Complaints In The Personal Service Industry, Payment Disputes in the Restaurant Industry, Lipsky Lowe Named Best Employment Lawyers in New York City, A Look at the EEOCs Fiscal Year 2022 Performance Report, NLRB Ruling Restricts Severance Agreements, Replacement of broken equipment or dishes, Expenses related to business transaction errors, Costs associated with settling disputes with customers, An employer deducts expenses from the employees wage and the expense was for the benefit of the employer, The employer fails to reimburse his or her employee for those expenses. Ensure you have a strong onboarding process. Remedies available for retaliation. ), hotspot device or internet service usage if the following conditions are met: The agency has an established written policy detailing how the charges will be reimbursed. Connect with new hires and make a lasting first impression. No, it is not required but it is highly recommended. You can edit the text in this area, and change where the contact form on the right submits to, by entering edit mode using the modes on the bottom right. For example, if an employee incurs a business expense in a state governed by the FLSA (or a state with reimbursement laws mirroring the FLSA rule), it is the employers burden to determine whether that expense brings the employees compensation below minimum wage, and if so, to reimburse that employee accordingly. Check out this guided tour to see for yourself how our platform works. In most cases, the costs wouldn't be considered necessary if an employee chooses to work remotely. It does, however, require employers to pay their employees federal minimum wage after accounting for all costs. Rather, an employer should assess on a case-by-case basis the expenses incurred by an employee and make a reasonable determination as to what the proper level of reimbursement is for the expense claimed. Reimbursement for business-related expenses. Health insurance regulations differ in each state. According to a 2022 Reuters article17, several clients of Ackermann & Tilajef have settled cases with their employers over unreimbursed remote work expenses. Soon, employees wondered who should be responsible for the expenses theyd accumulated for remote work. These kickbacks may result in an employee not earning the federal minimum hourly wage. Were growing and want to hear from you. Supplement Payments (Labor Law 198-c) Put this policy in writing and expressly state that employees may submit expense reimbursement requests each month to the extent that the flat rate does not cover the total expenses for the usage that month. Eliminate the stress of ACA filing with streamlined reporting. California, however, does have a law requiring employers to reimburse employees for business-related expenses. Read how HR solutions offer technology that is key to success. In some cases, local jurisdictions such as cities and counties may impose their own rules regarding expense reimbursement. Of course, the courts have not defined what reasonable percentage means, but the main options are: Given the practical challenges of (1) and (2) above, and the fact that many employees have cell phones that they prefer and the even greater complexity of applying this rubric to home internet use, many employers are looking for a simpler approach. According to state law, necessary expenditures include all reasonable costs. However, there are some costs that employers know employees will incur on a monthly basis and so it may make sense to provide a reimbursement on a more periodic basis. With so many employees working remotely, employers also began to wonder if they should reimburse their employees. A: 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. Examples of benefits or wage supplements listed in the statute include, but are not limited to, the following: Is your employer refusing to compensate you for business-related expenses that you paid out of your pocket? The hiring of a lawyer is an important decision that should not be based solely upon advertisements. But work usage may vary depending on the position. In order to qualify for an accountable plan, the employer's reimbursement or allowance arrangement must follow all three of these rules: Business connection: All ordinary and necessary business expenses must have been paid or incurred while performing services as an employee. If youd like to set yourself apart from the competition, it may be a good idea. Also, the court noted that even though some employees have plans which do not result in any additional cost for work use, the employer is still required to reimburse: The threshold question in this case is this: Does an employer always have to reimburse an employee for the reasonable expense of the mandatory use of a personal cell phone, or is the reimbursement obligation limited to the situation in which the employee incurred an extra expense that he or she would not have otherwise incurred absent the job? (July 2021), Providing Perspective on President Bidens Executive Order on Promoting Competition in the American Economy (July 2021), Best Practices for Tracking Proof of Employee Vaccinations (May 2021), Key Considerations in High Profile Investigations (May 2021), Avoiding Discrimination Lawsuits Following Layoffs (Mar. In other words, it is no concern to the employer that the employee may pass on the expense to a family member or friend, or to a carrier that has to then write off a loss. See Cochran v. Schwans Home Serv., Inc. Test drive Paycor Payroll, Onboarding, HR, and Time for 14 days. Build a Morning News Brief: Easy, No Clutter, Free! Finally, employers operating in these above-referenced jurisdictions should coordinate with a Labor & Employment attorney to review your existing expense reimbursement policy or create and implement such a policy. endobj Once you understand your obligations, set clear guidelines for your employees. Track critical documentation and control labor expenses. Again, the key is that employees are reimbursed a reasonable percentage of their phone bill. See how were taking the right STEP toward inclusion and belonging. Theres never been a better time to join. In sum, employers must reimburse California employees (without distinction) for cell phone use when employees are required to use their personal cell phones for business purposes. Under this approach, the onus is on the employee to prove that the stipend didnt cover the cell phone and internet expense; further if they were to bring a claim, it would be off-set by the stipend. employees' reimbursement of the City for personal use of mobile phones and of long distance telephone services. Unfortunately, in the years after Cochran was decided, employers still dont have a good answer because the courts and government agencies have not provided specific guidance. Currently, 11 states, the District of Columbia, and Seattle, Washington, have laws about reimbursing employees for necessary work-related expenses. Does your employer fail to compensate you for other regular expenses? 4th 1137 (2014). You can also choose to only offer the benefit to employees in certain states or classes. This depends on the work performed, but reasonable reimbursable expenses will likely include: internet services, mobile data usage, laptop computers or tablets, and equipment such as copiers and printers. Onboarding, HR, and Seattle, Washington, have Laws about reimbursing employees for business-related expenses according to 2022. In certain states or classes there is no federal requirement to reimburse employees business-related... Is that employees are reimbursed a reasonable Time ( 120 days ) result in an employee up three. Is paid for by a third person, or at all employees working remotely, employers began... 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