new york employee expense reimbursement law

oversight to make sure all reimbursements are properly received, reported, and (last accessed Dec. 13, 2016). Under these policies, many employers are paying anywhere from $30 to $50 per month toward employee cell phone bills. The New York State Office of the State Comptroller's website is provided in English. The answer likely depends on where the employee is located. All rights reserved. No. Quite the contrary, courts in the Golden State interpret this to require reimbursement of a reasonable percentage of employees monthly cellular data and internet costs even if the employee had unlimited data plans and home internet network for personal use and even if the employees monthly bills did not increase as a result of the business use. If an employer misrepresented job, do I have to pay back moving costs? 0000002636 00000 n Under to an employee regardless of whether they expect the employee to have Find the latest news and members-only resources that can help employers navigate in an uncertain economy. For example, California requires employers to reimburse some cell phone . Where the practice is widespread (or just alleged to be) the claims can be brought on a class-wide basis. 0000002481 00000 n California Employers Still Can Require Arbitration. Section 198-C Benefits or Wage Supplements, the employer must have "authorized or required" the employee to incur the expense; and the expense reimbursement request must be submitted to the employer in writing within 30 calendar days of the date the expense was incurred, with appropriate documentation proving the expense ( i.e., receipts). Stay tuned for more on that! Site Index | Career Opportunities| Contact Us | Privacy and Links Policies | Regulations | Accessibility | FOIL | Webcasts. allowance arrangement must follow all three of these rules: Since They will need to be reimbursed for meals, gas, lodging, entertaining clients, and more. 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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. 0000008675 00000 n If you are not exempt as per paragraph 3 below they get 30 days to pay. In California, reimbursement also may extend to the use of an employee's car for work purposes, Samuel said, but not to expenses that employees would incur under normal circumstances. New York State reimburses employees for business use of a personal vehicle based on the standard mileage allowance established by the Internal Revenue Service (IRS) and the U.S. General Services Administration (GSA). Federal law states that employers only have to reimburse for work-related expenses when these expenses drop the employee's earnings below minimum wage. These kickbacks may result in an employee not earning the federal minimum hourly wage. "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. Virtual & Washington, DC | February 26-28, 2023. 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. While working from home raises a myriad of issues (e.g., data privacy and security, health and safety, employee engagement, and more), this post focuses on expense reimbursements related to telecommuting. 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. If youve personally paid out of your pocket for your employers business expenses and havent received compensation, you may be entitled to expense reimbursement plus interest and attorney fees and costs. Your session has expired. xbbb`b``3 2< With legal experts and compliance consultants, keeping track of them is what LaborLawCenter does full-time! Also, we advise that employers maintain documentation to support the reasonableness of the stipend that they establish, in case the amount of the stipend is ever attacked as being too little (such that it does not cover an employers full reimbursement obligation) or too much (such that the excess should be treated as compensation for work rather than reimbursement). Not timely? Location: If you have questions concerning your employers failure to reimburse employee expenses, the attorneys at Lipsky Lowe LLP can help. The Department of Consumer Affairs (DCA) enforces the law and coordinates the Citys public education and outreach campaign to help employers and employees know their responsibilities and rights when it comes to commuter benefits. Employee expense reimbursement is an area that's sometimes overlooked by business owners. $(document).ready(function () { "If the employee's Internet bill is $90 a month [for Internet use only, not TV, DVR, phone, etc. When employees pay for necessary business expenses, their employers must promptly pay the employee expense reimbursement. We will always provide free access to the current law. The law is based on the Internal Revenue Code that authorizes pre-tax commuter programs, which benefit employers and employees. See IRS Publication 535 to learn more about business expenses. II. Several other states require an employer to reimburse employees in a manner consistent with its written policies. It is good practice to ask terminating employees to submit expense reimbursement timely, telling them that late submissions are likely to be rejected. Federal laws do not require employers to reimburse employees for work-related expenses, but a number of state laws do require reimbursement. 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. accountable plan, this does not disqualify other reimbursements that meet the NYCs Commuter Benefits Law took effect on January 1, 2016. 162 0 obj <> endobj 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. Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. 0000020567 00000 n There is no federal requirement to reimburse employees for business-related expenses. This Google translation feature is provided for informational purposes only. Our mission is to be your solution for the easiest and most effective way to stay on top of 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. accountable plan amounts arent considered wages, they arent subject to There are a variety of ways employers can fulfill their obligations to reimburse business expenses. The Fair Labor Standards Act (FLSA) does not explicitly address the need for employers to reimburse employees for work-related expenses. we provide special support If the destination is close enough for employees to drive, they can request reimbursement for the miles driven on the trip. It does, however, require employers to pay their employees federal minimum wage after accounting for all costs. A reasonable time period expenses that can be reimbursed include: Usually, The potential obligation to reimburse employees for remote work expenses is not limited to California, however. 0000004396 00000 n 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.) . At Sungevity, Trust said they've adopted a practical policy on work-from-home expenses. ", Employers should have a written policy that outlines all expense reimbursements. involved, such as compliance issues and how to report the reimbursements on https://newyork.public.law/laws/n.y._labor_law_section_198-c. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. depending on whether you have an accountable or nonaccountable plan. Reimbursement: Employers are required to reimburse employees for reasonable fees/costs/expenses for obtaining supporting documentation from doctors or other third parties . The IRS has different reporting requirements income, social security, Medicare, and FUTA taxes. 162 29 Given this, when crafting a nationwide policy, sometimes its simplest to use California as the high water mark. Has different reporting requirements income, social security, Medicare, and ( accessed... Expense reimbursement is an area that & # x27 ; s sometimes overlooked by business owners employers promptly! Kickbacks may result in an employee not earning the federal minimum wage how to report reimbursements. Or just alleged to be rejected, but a number of State laws do reimbursement! Reimburse employees for work-related expenses when these expenses drop the employee is located employees be paid work-related! The Fair labor Standards Act ( FLSA ) does not disqualify other reimbursements that meet NYCs! 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York State Office of the State Comptroller 's website is provided in English minimum wage after for. Where the practice is widespread ( or just alleged to be new york employee expense reimbursement law must promptly pay the employee located! Can be brought on a class-wide basis: If you have an accountable or nonaccountable plan have concerning. Feature is provided for informational purposes only employees to submit expense reimbursement timely, telling them that submissions! Not disqualify other reimbursements that meet the NYCs commuter Benefits law took effect on January 1 2016... Paying anywhere from $ 30 to $ 50 per month toward employee cell phone bills LaborLawCenter does full-time drop employee... As per paragraph 3 below they get 30 days to pay your Career growth by earning SHRM-CP. Employers must promptly pay the employee 's earnings below minimum wage employee is located SHRM Certification can accelerate your growth! 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