1. If an employer misrepresented job, do I have to pay back moving costs? New York States Labor Law provides that employers who fail, neglect, or refuse to pay benefits or wage supplements to their employees are guilty of a misdemeanor. Reimbursement: Employers are required to reimburse employees for reasonable fees/costs/expenses for obtaining supporting documentation from doctors or other third parties . The IRS determines reimbursements on an employee-by-employee Unique COVID-Related Wage & Hour Issues Employers Need to Know, US Immigration Considerations During the Pandemic, Workplace Safety | Practical Tips for COVID-19 Notifications, Protecting trade secrets in the rapid remote world, The Reopening Playbook: What US Employers Should Be Thinking About Right Now, COVID-19: 3 Key Areas for US Employers to Master Now, Cost-Cutting Strategies in the Wake of COVID-19. Join thousands of people who receive monthly site updates. In California, for example, the statutory language requires employers to reimburse for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of the employees duties or at the direction of the employer. In California, employers must reimburse their employees "for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer." (Labor Code Section 2802.) Employees often personally pay for expenses on behalf of their employers, such as office supplies, postage costs, or even customer-related costs. Montana's employee business expense reimbursement law is similar to that of California's and Illinois'. order to qualify for an accountable plan, the employers reimbursement or . While that might sound like only those costs that would not have been incurred but for work, that is not how the statute has been interpreted. EMPLOYER REIMBURSEMENT OF EXPENSES--NY I use my own cash, credit card for approved, allowed business expenses such as gasoline, T/E, Office,Printing supplies, etc. Privately Owned Vehicle (POV) Mileage. The law is based on the Internal Revenue . As a result, many employers may be facing the interplay of remote working expenses with the minimum wage for the first time. Do not disclose personal identifying information except to the extent necessary to Ask MEL a question. MEL is a service of Neil Klingshirn, Board Certified Employment Law Specialist, serving clients in Akron, Canton, Cambridge, Cleveland, Columbus, Lorain, Marietta, Youngstown and Wooster, Ohio. Join thousands of people who receive monthly site updates. Provide employees with a cell phone or another communication alternative for business use. 0000003372 00000 n This means that employees can file claims for unreimbursed expenses with the New Hampshire Department of Labor. David Williams claims in the class action legal filing that the company violated California labor law requiring that employees be paid for work-related expenses. Businesses should re-examine their reimbursement and allowance policies in light of the new Tax Cut and Jobs Act, effective for 2018 through 2025 tax years. Law Salaries & Employee Benefits Reimbursement for Travel & Moving Expenses Upon Transfer, Reassignment or Promotion New York State Finance Law Sec. A ring light might be nice for all those Zoom meetings, but is it necessary? On a federal level, under the Fair Labor Standards Act (FLSA), employees cannot be required to directly pay or reimburse their employer for business-related expenses if doing so would cause the employee's wage rate to fall below the required minimum wage or overtime compensation thresholds. Learn more about how to use and manage your travel card. oversight to make sure all reimbursements are properly received, reported, and . 0000004054 00000 n No. Stay tuned for more on that! Federal law does not require employers to reimburse employees for expenses incidental to carrying on the employer's business. And that doesn't factor in the hidden costs of training: time taken away from job duties, equipment. Watch Now! For any questions please email or call Sarah Fuller at Sarah.F.Fuller@dol.nh.gov or 603-271-3597. While expense reimbursement is only required if it is stipulated in an employment contract or if the business expenses bring the employees wages below minimum wage, most businesses reimburse work-related expenses incurred by employees as a job perk. 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. 0000002987 00000 n We will always provide free access to the current law. Original Source: entrepreneurship, were lowering the cost of legal services and Other states, including Illinois, Iowa, Montana, New Hampshire and South Dakota, have enacted laws which may require reimbursement of employee expenses, although case law in these states is not as well-developed as in California. Section 203 of the NYS State Finance Law and 8 NYCRR 8.14(Comptroller's Regulations) serve as the basis of the University's policy on reimbursement of interview travel expenses incurred by candidates for staff appointment.. New York City Mayor Bill de Blasio signed into law New York City Council Int. Dutch authorities have since used this research to give government employees a 363 euro ($429) COVID-19 bonus to cover items they would have normally received for free in the office, such as coffee and tea, toilet paper, and Internet access and utilities used during work hours. With legal experts and compliance consultants, keeping track of them is what LaborLawCenter does full-time! "If they don't reimburse, it's as if employees took a salary cut. The employee can be reimbursed for the home office percentage of rent or mortgage expenses, depreciation, utilities, and other costs of maintaining the home. Employers must reimburse an employee for all necessary expenditures incurred in direct consequence . Section 198-C Benefits or Wage Supplements, Repayment of tuition and training costs. The District of Columbia's expense reimbursement law, found in Title 7 Section 910.1 of the D.C. Municipal Regulations, requires employers to pay the cost of purchasing and maintaining any. Business Units may use the Travel and Expense module directly or bulkload the Travel and Expense module from their systems. we provide special support New York will continue to allow you to exclude qualified moving expenses reimbursement and moving expenses from your NYAGI. Employer has not reimbursed expenses for months. If you're considering reimbursing expenses for home-based employees, it first helps to know the laws. If you have questions concerning your employers failure to reimburse employee expenses, the attorneys at Lipsky Lowe LLP can help. BYOD, or bring your own device, policies are becoming more common in work environments. Attorneys Labor Law A to Z Wrongful Termination Wage & Hour Discrimination Workers' Comp Locations Call or Message Us 24/7 877-783-6926 Required Field 24/7 Help: 1-(877)-SUE-MY-BOSS Before you call us: Non-teaching employees of school districts are subject to the NYS Minimum Is Time Rounding Over for California Employers? Employers should review expense reimbursement, uniform, tool and equipment policies and procedures to ensure they comply with special California rules. 0000002481 00000 n 202 Reimbursement for Travel and Moving Expenses Upon Transfer, Reassignment or Promotion, Reimbursement for Travel & Moving Expenses Upon Transfer, Reassignment or Promotion. Additional states with expense reimbursement laws include Illinois, New Hampshire, Massachusetts, Pennsylvania, Washington, D.C. and others. Since most of his staff are now working at home, the company will reimburse for anything related to work performance and department responsibilities, as long as it's within reason, he said. Since so many people are working remotely now, employers will need to ensure that employees earning near minimum wage are not spending so much on expenses that their paycheck falls too low. Another component of assessing whether an incurred expense was necessary is whether the employee could have fulfilled the need at a lower cost. Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. taxes. Businesses requirements. One and one-half times their regular, "straight-time" hourly rate of pay for all hours over 60 in a calendar week and/or for any hours worked on day of rest. It is good practice to ask terminating employees to submit expense reimbursement timely, telling them that late submissions are likely to be rejected. Williams said while working remotely, he and other workers used their: He said he incurred about $50 to $100 monthly in home office expenses. trailer Plaintiffs' attorneys have been pushing the boundaries of . The policy should clearly articulate the employers expectations for the tools and equipment that are necessary to do the job from home, and establish guardrails for when and how employees can purchase equipment with the expectation that the company will foot the bill. Remote workers may qualify for other expense reimbursements, but this usually depends on the company's policy. It appears that your web browser does not support JavaScript, or you have temporarily disabled scripting. ", Lewis said that he implemented a written policy that anything expensed "is subject to return upon termination of employment, and [we created] an addendum that there could be a payroll deduction for any non-consumable expense not returned.". Under this new normal, employers must be mindful of the expenses these workers might be incurring; in particular, with respect to one-time higher ticket purchases that could drop them below minimum wage, such as a printer or other home office equipment that is necessary for their job (more to come on the critical modifier necessary). When an employee spends his or her own money on ordinary and necessary business expenses, a reimbursement or allowance arrangement is the system used to pay them back. 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One of the key components of the most onerous expense reimbursement laws is the requirement to reimburse for any necessary expense, which begs many a question about what types of expenses must be reimbursed. "It is good practice to reimburse employees for expenses that they have to incur to do their jobs, even if not required by law, because it is the equitable thing to do," he said. With the employer reimburses the employee. 0000001739 00000 n Since so many people are working remotely . Download Statement of Incidental & Transportation Expenses (AC3259-S) See Cochran v. Schwans Home Serv., Inc. The COVID-19 Employment Litigation Landscape Is It All Uphill From Here? The process for Even if your company is in a state that does not have reimbursement laws, it's ideal to reimburse anyway, said Robin Samuel, a partner in the Employment Practice Group of Baker McKenzie in Los Angeles. For more information on accountable plans, see IRS Publication 463. Some, particularly in tech, may be working from home through the end of the year, or even permanently! Members can get help with HR questions via phone, chat or email. Some of the common telecommuting expenses that state law may cover include Internet services and cellphone fees, office supplies and other equipment, and any paid services that are required to perform a job. Under the law, for-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to purchase qualified transportation fringe benefits. Use the NYS Travel Card (T-Card) to pay appropriate travel expenses while traveling on official state business to minimize your out-of-pocket costs. wages subject to income, social security, Medicare, and FUTA taxes. Are you a delivery driver who uses your vehicle to make deliveries for your employer? temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; While federal law does not require employers to pay for work-related expenses incurred by employees while working from home, many state laws do. The maximum allowable 0 Where an employee incurs expenses on his employer's behalf or where he is required to expend sums by reason of action taken for the convenience of his employer, section 7 (e) (2) is applicable to reimbursement for such expenses. The information that you provide is subject to MEL's Privacy Policy. $('.container-footer').first().hide(); The vast majority of W-2 workers can't deduct unreimbursed employee expenses in 2020. Alternatively, employers can establish a process by which employees are only reimbursed after submitting a receipt or other documentation confirming that they indeed incurred the expense. The process for By way of example, some of these statesnotably California and Illinoishave strict reimbursement laws. compensation. United States, New York State, and New York City governments, including any office, department, independent agency, authority, institution, association, society, or other body of the state, including the legislature and the judiciary. They have the same wages but now have to pay for their Internet service, phone or perhaps an extra monitor or spare laptop [for backup] as well," she said. This mean, "all . This figure varies depending on the company and the agreed-upon policy. See: 1 answer | asked Oct 5, 2015 12:27 PM [EST] | applies to, wage payment and reimbursement of bs expenses, Can my company withhold my last check as reimbursement for moving expenses. 2. Employees of public agencies are usually covered by the Federal Minimum Wage. 2023 All Rights Reserved, NYC is a trademark and service mark of the City of New York. By adhering to this allowance, reimbursements for mileage are not taxable to the employee. professional licenses. accountable plan, this does not disqualify other reimbursements that meet the Members may download one copy of our sample forms and templates for your personal use within your organization. If Finance Office personnel are unsure about how to apply this guidance to a specific travel event, they should contact OSCs Travel Unit at [emailprotected]. Employers pay all of the advances, reimbursements, and charges for employees business expenses. employer as business expenses. Search and download FREE white papers from industry experts. 0000008675 00000 n The State of New York, its officers, employees, and/or agents are not liable to you, or to third parties, for damages or losses of any kind arising out of, or in connection with, the use or performance of such information. This includes: Federal, State, County, City, Village, Town, School district, or certain quasi-government agencies. I am using my own funds, but reimbursements are NOT made in a timely manner; moreover, they are often in complete ( no withholds, challenges to the expenses). The Office of the State Comptroller does not warrant, promise, assure or guarantee the accuracy of the translations provided. Does your employer fail to compensate you for other regular expenses? Trust added that it's important not to use this issue to force people back into the office too soon, as employee morale will suffer. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. "It builds employee morale and generally results in better work when employees don't look for ways to avoid incurring expenses that otherwise would allow them to work more efficiently.". 0000003840 00000 n Is there a reimbursable expense if the employee incurs no incremental cost in using a personal cell phone or connecting to their home wireless internet network for work purposes? Are they legally obligated to? D.C. Municipal Regulation Title 7, Section 910.1. II. If the employer is a corporation, the New York statute holds its President, Secretary, and Treasurers each guilty of a misdemeanor for failing to pay their employees benefits or wage supplements. It is important to note that the provisions in this section do not apply to bona fide professional, administrative, or executive employees who earn over $900 US per week. Founded in 1949, Baker McKenzie advises many of the worlds most dynamic and successful business organizations through more than 4,100 locally qualified lawyers and 6,000 professional staff in 77 offices in 45 countries. create a detailed reimbursement procedures guide, team up with Resourcing Edge. Federal law states that employers only have to reimburse for work-related expenses when these expenses drop the employee's earnings below minimum wage. Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. allowance arrangement must follow all three of these rules: Since } document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Home expenses such as telephone and internet fees, extra energy to heat or cool a house and office supplies can add up to $50 to $200 a month per employee, according to more than a dozen lawsuits . It seems straightforward enough that only those expenses actually incurred must be reimbursed, but this question is not always so simple. 190 0 obj <>stream Massachusetts, Montana, Pennsylvania, New York, Iowa, and the District of Columbia. There are several states that require employers to reimburse for all necessary business-related expenses, including California, Illinois, Iowa, Massachusetts, Montana, New York and the District of Columbia (for more information, see SHRM's Multi-state Law Comparison Tool). Federal laws do not require employers to reimburse employees for work-related expenses, but a number of state laws do require reimbursement. Please enable scripts and reload this page. For example, California requires employers to reimburse some cell phone . The cost of providing employee-requested copies of employment records. GET to KnowNew York State ComptrollerThomas P. DiNapoli. See IRS Publication 535 to learn more about business expenses. Regardless of the specific avenue for ensuring the employer does not improperly shift business expenses to its employees, all employers should be aware of their obligations to reimburse and review and update their expense reimbursement policies to take into account the applicable law and the expenses their newly-expanded remote workforce might incur.