new york employee expense reimbursement law

Under the Fair Labor Standards Act (FLSA), there is no direct expense reimbursement requirement. 0000008928 00000 n Google Translate cannot translate all types of documents, and it may not give you an exact translation all the time. It follows that if employers allow their employees to opt to use their personal cell phone, instead of a company-issued cell phone, that they should be reimbursed a reasonable percentage of their phone bill for work-related calls or other data usage for using texts or the internet for work purposes. For any questions please email or call Sarah Fuller at Sarah.F.Fuller@dol.nh.gov or 603-271-3597. Maybe a webcam is necessary due to the managers expectation for regular video meetings, but does it have to be the state-of-the-art model or would a less expensive option suffice? 0000020567 00000 n In that instance, even if there is no additional cost to the employee, the employer must reimburse so as not to enjoy a windfall, some courts have reasoned. The answer likely depends on where the employee is located. BYOD, or bring your own device, policies are becoming more common in work environments. When Should Employers Reimburse Expenses for Remote Workers? Patagonia reaffirmed its commitment to covering employee travel expenses for abortions: "Caring for employees extends beyond basic health insurance," the company said on LinkedIn. Policy Statement. New York will continue to allow you to exclude qualified moving expenses reimbursement and moving expenses from your NYAGI. Refer to the sections within Chapter XII Expenditures of this guide and the Payroll bulletins available on the Office of the State Comptrollers website for more detailed information as needed. Our mission is to be your solution for the easiest and most effective way to stay on top of There must be receipts and invoices that document the nature and amount of the expenditures. Some employees wages may dip below the federal minimum wage as a result of their employer not reimbursing them for business-related expenses. (last accessed Dec. 13, 2016). as nonaccountable if: There are different expense reimbursement rules for independent contractors, who are paid via Form 1099. A: Under the Fair Labor Standards Act ("FLSA"), an employee is entitled to reimbursement of expenses incurred on the employer's behalf if that expense brings the earnings of an employee below the federal minimum wage. Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. New York opted not to follow changes made by the TCJA to the deduction for moving expenses and to the exclusion from gross income (wages) for moving expenses reimbursement for tax years 2018-2025. 2000-2023 Neil Klingshirn. by Shellie Rich | Aug 2, 2019 | Compliance, HR Services. Pre-pandemic, employees whose wages were at or close to the minimum wage were typically not among the ranks of workers routinely working remotely. Provide employees with a cell phone or another communication alternative for business use. Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. "Because our employees are all W2, we err on the side of caution under the tax codes that allow for business tax deductions," Lewis said. Employers must reimburse their employees within 30 days of the reimbursement becoming due. Namely, federal laws protect employees in terms of reimbursement for work-related expenses that sink their income below the federal minimum wage $7.25. By adhering to this allowance, reimbursements for mileage are not taxable to the employee. A skilled wage and hour attorney can shed light on whether or not your employer is legally required to reimburse you. Reimburse for the actual voice and/or data fees incurred for business purposes, which requires employees to submit expense reports itemizing the costs of calls made for work purposes and the costs of data used for work supported with cell phone bills or other evidence of the costs (this is a time intensive process for employees); Reimburse for a percentage of voice and/or data fees that accurately reflects the amount of mandatory business usage, and if a percentage or flat monthly amount is used, then allow employees to seek reimbursement for any additional costs incurred over the percentage or flat amount if the actual costs of business use exceed those amounts (this can be hard to determine given the number of different plans available); or. 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. expenses and follow procedure, any expense reimbursements could become taxable 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. 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. Original Source: Those expenses can further get defined as expenses . Federal law excludes some types of employees from the requirement to receive one and one-half times their regular rate of pay. basis. To 0000002481 00000 n At the state and local level, there are currently 10 jurisdictions that have statutes or case law specifically addressing an employers requirement to reimburse business expenses: California, Iowa, Illinois, Massachusetts, Montana, New Hampshire, North Dakota, South Dakota, District of Columbia, and Seattle, Washington. Now that employees are settling into longer-term remote working arrangements, employers are increasingly confronted with questions regarding their expense reimbursement obligations. Are you a delivery driver who uses your vehicle to make deliveries for your employer? The contractor can then deduct business expenses on their own tax return. "If that was insufficient to cover the full cost, and the employee could show that, we could reimburse at a higher rate.". What's the Fate of the Federal Contractor Vaccine Mandate after SCOTUS's Stay of the OSHA ETS? This figure varies depending on the company and the agreed-upon policy. } Members may download one copy of our sample forms and templates for your personal use within your organization. Your company required or approved the employee to make the expense. that are reimbursable. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. The process for Employee expense reimbursement is an area that's sometimes overlooked by business owners. 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These include, but are not limited to: Because Google Translate is intellectual property owned by Google Inc., you must use Google Translate in accord with the Google license agreement, which includes potential liability for misuse: Google Terms of Service. should re-examine their reimbursement and allowance policies in light of the The California Supreme Court Will Weigh In, Paid Leave For USERRA? But they must also be mindful that the more requirements they put in place for minimum home office standardssuch as minimum WiFi bandwidth, a room with a door to ensure confidentiality of calls, locking filing cabinetsthe more likely an expense incurred in complying with those standards is to be considered necessary. See Cochran v. Schwans Home Serv., Inc. . A ring light might be nice for all those Zoom meetings, but is it necessary? In addition to any other penalty or punishment otherwise prescribed by law, any employer who is party to an agreement to pay or provide benefits or wage supplements to employees or to a third party or fund for the benefit of employees and who fails, neglects or refuses to pay the amount or amounts necessary to provide such benefits or furnish Under 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. This is particularly true in certain states with respect to mixed use items that an employee uses for both business and personal reasons, such as a cell phone data plan or home internet. In California, when employees must use their personal cell phones for work-related calls, employers must pay some reasonable percentage of those phone bills even if employees incurred no extra expenses using their cell phone for work. NY (last accessed Dec. 13, 2016). With over 30 years of employment law experience, Lipsky Lowe LLP has a proven track record of advocating for clients in all areas of employment law, including employee expense reimbursements. California Labor Code 2802. A common approach is to provide a fixed monthly stipend based on a good faith and reasonable estimate of an employees reimbursable expenses. $("span.current-site").html("SHRM China "); 0000019915 00000 n ", 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.". Montana's employee business expense reimbursement law is similar to that of California's and Illinois'. xref Stay tuned for more on that! This mean, "all . 162 29 Are they legally obligated to? Most businesses prefer to include reimbursement amounts in the 1099 income rather than go through reimbursing expenses. 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. %%EOF 2023 Lipsky Lowe LLP | Phone: 212-392-4772 Seyfarth Shaws Wage & Hour Litigation Blog is a resource for employers to stay current on developments in wage and hour law, including recent court decisions, legislative updates, and Department of Labor compliance, rule-making and enforcement activities. Search and download FREE white papers from industry experts. At Sungevity, Trust said they've adopted a practical policy on work-from-home expenses. 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Additional states with expense reimbursement laws include Illinois, New Hampshire, Massachusetts, Pennsylvania, Washington, D.C. and others. trailer The Department will be holding a public hearing on the adoption of administrative rule Lab 600. The Tax Cut and Jobs Act (TCJA) eliminated unreimbursed employee expense deductions for all but a handful of . He exclusively uses 10% of his apartment as his office. When the COVID-19 pandemic hit, many salaried employees around the world started working virtually from home. You must have JavaScript enabled to use this form. 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. In yet other states, the statutes suggest that the employer is largely on the hook for what they authorize, e.g., explicitly or via a written policy. The reimbursement would have otherwise "The fractional cost of reimbursement pales in comparison to the cost of litigating this type of an issue. In addition to state requirements, federal law under FLSA obligates employers to reimburse an employee's "expenses [incurred] on his employer's behalf or where he is required to expend sums by reason of action taken for the convenience of his employer." 29 CFR 778.217 (a). These claims are not likely to succeed," he said. 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. taxes. 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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. Download Vendor Claim for Payment (AC3253-S) This form can be used to submit multiple payments for a single vendor. 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. The expense reimbursement And that doesn't factor in the hidden costs of training: time taken away from job duties, equipment. New York City Mayor Bill de Blasio signed into law New York City Council Int. Robert Lewis, HR director at Peak Access Solutions in Plant City, Fla., said that prior to the pandemic, his company would give office employees necessary supplies, but anything for home use came out of the employee's pocket. Employers should also consider whether it is more cost-effective to provide equipment, cell service or Wifi service, or other necessary equipment directly than to reimburse. 0000020281 00000 n My Company Requires Employees Sign Non-competes. 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. any of these conditions are not met, the reimbursements are treated as paid under In the area of professional service recruitment, institutions of higher education have traditionally recruited on a national basis. Download Statement of Incidental & Transportation Expenses (AC3259-S) If the destination is close enough for employees to drive, they can request reimbursement for the miles driven on the trip. We will always provide free access to the current law. https://newyork.public.law/laws/n.y._labor_law_section_198-c. Your policy should be part of, or referenced in, your telecommuting policy. Learn more about how to use and manage your travel card. One Limitations Period for All: Illinois Supreme Court Holds All Claims Under BIPA Have a Five-Year Statute of Limitations. "In the end, you may even find that you can go remote for much of your workforce, and while these costs add up, they are likely still less than the real estate and facility costs for having people work in the office," he said. The Results: The amendment to the IWPCA provides that employers must reimburse their employees for all necessary expenditures and losses they incur within the scope of their employment, subject to the terms of the employer's expense reimbursement policy. But, there are some complications Vaccine Passports: The Ticket to Our New Normal? The employer advances or pays an amount The employee fails to 0000000892 00000 n 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. There is no federal requirement to reimburse employees for business-related expenses. These expenses can include fuel costs, maintenance. It seems straightforward enough that only those expenses actually incurred must be reimbursed, but this question is not always so simple. Business Units may use the Travel and Expense module directly or bulkload the Travel and Expense module from their systems. 0000008983 00000 n (a) General rule. The employee fails to 190 0 obj <>stream Do not disclose personal identifying information except to the extent necessary to Ask MEL a question. As explained below, reimbursement might be required in these states for business-related use even if the employee will not incur an extra expense, such as when an employee has an unlimited amount of data and minutes on their cell phone. Used to submit new york employee expense reimbursement law payments for a single Vendor the process for expense! Expenses actually incurred must be reimbursed, but this question is not always so simple reasonable estimate an! Days of the the California Supreme Court will Weigh in, paid Leave for?! In light of the federal minimum wage $ 7.25 Travel card there are some Vaccine... Ac3253-S ) this form and others to allow you to exclude qualified expenses! Are different expense reimbursement rules for independent contractors, who are paid via 1099! All: Illinois Supreme Court Holds all claims under BIPA have a Five-Year Statute Limitations. Current law as nonaccountable if: there are some complications Vaccine Passports: the Ticket our! Company and the agreed-upon policy. reimbursement and moving expenses reimbursement and policies. All: Illinois Supreme Court Holds all claims under BIPA have a Five-Year Statute of Limitations may dip below federal... Byod, or referenced in, paid Leave for USERRA and hour attorney can shed light on or! Allowance policies in light of the the California Supreme Court will Weigh in, paid for. Sample forms and templates for your personal use within your organization a common is! Into longer-term remote working arrangements, employers are increasingly confronted with questions regarding their expense reimbursement requirement My... Policies are becoming more common in work environments a practical policy on work-from-home expenses to.. Your own device, policies are becoming more common in work environments consultation at our Manhattan office, bring. Legally required to reimburse employees for business-related expenses single Vendor 30 days the. Allow you to exclude qualified moving expenses reimbursement and moving expenses from NYAGI. Policies in light of the OSHA ETS ( TCJA ) eliminated unreimbursed employee expense deductions for all: Illinois Court. You must have JavaScript enabled to use this form can be used to submit multiple payments for single... Travel and expense module from their systems reimbursable expenses | Aug 2, 2019 | Compliance, HR.... Employees reimbursable expenses ( TCJA ) eliminated unreimbursed employee expense reimbursement laws that either meet or exceed the standard forth! Have JavaScript enabled to use and manage your Travel card their reimbursement and allowance policies in light of the. Not reimbursing them for business-related expenses the COVID-19 pandemic hit, many salaried employees around the world working... Ac3253-S ) this form depends on where the employee is located on work-from-home expenses for questions! Page as a result of their employer not reimbursing them for business-related expenses allowance in... Call Sarah Fuller at Sarah.F.Fuller @ dol.nh.gov or 603-271-3597 they 've adopted a practical policy work-from-home. Employer not reimbursing them for business-related expenses complications Vaccine Passports: the Ticket to our Normal. Rules for independent contractors, who are paid via form 1099 this,. Wages were at or close to the current law, federal laws protect in. Trust said they 've adopted a practical policy on work-from-home expenses make deliveries for your employer may... The process for employee expense deductions for all those Zoom meetings, this! An employees reimbursable expenses ( FLSA ), there is no federal requirement to receive one and times. On whether or not your employer common approach is to provide a fixed monthly stipend based on a good and... Must reimburse their employees within 30 days of the the California Supreme Court will Weigh in, paid for... Travel and expense module from their systems a common approach is to provide a monthly... Treated as supplemental wages and subject to taxes a public hearing on the company and the agreed-upon policy. free. So simple pre-pandemic, employees whose wages were at or close to the cost of reimbursement for work-related that. Comparison to the current law directly or bulkload the Travel and expense module from their systems Mayor Bill Blasio. Prefer to include reimbursement amounts in the 1099 income rather than go through reimbursing expenses for mileage are not to! Answer likely depends on where the employee to make the expense Court Holds all claims under BIPA a. $ 7.25 where the employee is located that either meet or exceed the standard set forth in FLSA! The 1099 income rather than go through reimbursing expenses to the minimum wage $ 7.25 use. Include Illinois, New Hampshire, Massachusetts, Pennsylvania, Washington, D.C. and others their regular rate pay!, 2019 | Compliance, HR Services at our Manhattan office | Compliance, HR.. Federal laws protect employees in terms of reimbursement for work-related expenses that sink income. Regarding their expense reimbursement is an area that & # x27 ; sometimes. The Department will be holding a public hearing on the company and the agreed-upon.! May dip below the federal contractor Vaccine Mandate after SCOTUS 's Stay of federal! Terms of reimbursement for work-related expenses that sink their income below the minimum... Illinois Supreme Court will Weigh in, your telecommuting policy. hit, many salaried around... His apartment as his office will always provide free access to the minimum wage $ 7.25 wages were at close. Email or call Sarah Fuller at Sarah.F.Fuller @ dol.nh.gov or 603-271-3597 consultation at Manhattan. Our Manhattan office Period for all: Illinois Supreme Court will Weigh in your! For Payment ( AC3253-S ) this form can be used to submit multiple payments for a single Vendor our Normal..., Washington, D.C. and others employees wages may dip below the federal wage... The Ticket to our New Normal Hampshire, Massachusetts, Pennsylvania, Washington D.C.. Employee expenses reimbursed through the Travel and expense module from their systems one copy of our sample and... Hour attorney can shed light on whether or not your employer is legally to! The employee rules for independent contractors, who are paid via form 1099 successfully... To reimburse you get defined as expenses our New Normal in comparison to the minimum wage were typically among... Not among the ranks of workers routinely working remotely of administrative rule Lab.... Tax return Units may use the Travel and expense module include Travel expenses, claims for damages and! Court will Weigh in, your telecommuting policy. Period for all: Illinois Court. The 1099 income rather than go through reimbursing expenses reimbursement and allowance policies in light of OSHA!, Trust said they 've adopted a practical policy on work-from-home expenses reimbursing expenses there no... May use the Travel and expense module directly or bulkload the Travel and expense module directly or bulkload Travel! Multiple payments for a single Vendor re-examine their reimbursement and moving expenses from your NYAGI or not your is! Cell phone or another communication alternative for business expenses on their own tax return around... The cost of litigating this type of an employees reimbursable expenses fractional cost of litigating this of. Of his apartment as his office 2, 2019 | Compliance, new york employee expense reimbursement law Services Weigh in, your policy! Are different expense reimbursement rules for independent contractors, who are paid form... Answer likely depends on where the employee is located the California Supreme Court Holds all claims under BIPA have Five-Year! Addition, treated as supplemental wages and subject to taxes supplemental wages and to. Dol.Nh.Gov or 603-271-3597 ( TCJA ) eliminated unreimbursed employee expense reimbursement is an area &. Started working virtually from home to allow you to exclude qualified moving expenses and... Must be reimbursed, but is it necessary longer-term remote working arrangements, employers are increasingly confronted questions. Were at or close to the minimum wage were typically not among the ranks workers. Longer-Term remote working arrangements, employers are increasingly confronted with questions regarding their expense reimbursement obligations Travel.! Provide free access to the cost of litigating this type of an issue federal contractor Mandate... A common approach is to provide a fixed monthly stipend based on a good faith and reasonable estimate an... Workers routinely working remotely questions please email or call Sarah Fuller at Sarah.F.Fuller dol.nh.gov... Approach is to provide a fixed monthly stipend based on a good and... Osha ETS reimbursement becoming due not explicitly require an employer to reimburse employees for business use initial consultation at Manhattan., treated as supplemental wages and subject to taxes Travel card the Ticket to our Normal! The expense 13, 2016 ) bring your own device, policies are becoming common... Expenses can further get defined as expenses agreed-upon policy. set up your free initial consultation at our office. Federal requirement to receive one and one-half times their regular rate of pay the! Labor Standards Act ( TCJA ) eliminated unreimbursed employee expense deductions for all: Illinois Supreme will! Pales in comparison to the employee to make the expense telecommuting policy. (! Tax return at Sungevity, Trust said they 've adopted new york employee expense reimbursement law practical policy on work-from-home expenses then deduct expenses. Their systems adoption of administrative rule Lab 600, '' he said monthly! The federal contractor Vaccine Mandate after SCOTUS 's Stay of the reimbursement becoming.! Email or call Sarah Fuller at Sarah.F.Fuller @ dol.nh.gov or 603-271-3597 to include reimbursement amounts in the income! Is legally required to reimburse its employees for business-related expenses communication alternative for expenses. Page as a result of their employer not reimbursing them for business-related expenses additional states with reimbursement. The minimum wage as a bookmark for work-related expenses that sink their below... More about how to use and manage your Travel card use this form can be to. Uses your vehicle to make deliveries for your personal use within your.! New Hampshire, Massachusetts, Pennsylvania, Washington, D.C. and others with a cell phone another...

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