Do you know your rights as an employee when it comes to expense reimbursement?
Many jobs require employees to pay for work-related expenses out of pocket, such as travel, meals, equipment, or supplies. It’s important to know when and how you’re entitled to be compensated for these costs, and what the law says about your employer’s responsibilities.
You deserve all the pay to which you have earned and are legally entitled. Rowdy Meeks Legal Group LLC will help vigorously pursue the compensation you are owed for wage claims.
What is Expense Reimbursement?
Expense reimbursement refers to the process by which an employer repays employees for costs they incur while performing their job duties. This can include things like:
- Travel costs (flights, gas, mileage, hotel stays)
- Meals during business trips
- Work supplies or equipment
- Uniforms (in some cases)
- Job-related training or education costs
- Communication costs (work-related phone or internet bills)
Employers may have different policies on what they will reimburse, but they are often required to ensure that employees are not left out of pocket for work-related expenses.
Are Employers Legally Required to Reimburse Employees?
The Fair Labor Standards Act (“FLSA”) does not specifically require employers to reimburse employees for job-related expenses. However, some states and even certain cities have their own employee reimbursement laws.
Under the FLSA, if an employee’s work-related expenses cause their wages to fall below the federal or state minimum wage, the employer is required to reimburse those expenses to maintain compliance with minimum wage laws.
Employer Policies and Agreements
Many employers have expense reimbursement policies in place that outline which expenses are covered and how employees can submit claims.
- Mileage and Travel Costs: Employees who are required to travel for work should be reimbursed for mileage, fuel, or public transportation fares.
- Meals and Lodging: If an employee is required to travel overnight or attend work-related meetings away from their regular worksite, meal and lodging expenses may need to be reimbursed. Employers often set per diem limits for these costs.
- Work Supplies and Equipment: If an employer requires an employee to purchase tools, safety equipment, uniforms, or other supplies to perform their job, these costs should generally be reimbursed. This includes laptops, phones, or software required to complete the job.
- Communication Costs: Employees required to use their personal phone or internet for work purposes may be entitled to reimbursement.
Employers often require receipts or documentation for reimbursement claims. Employees may need to submit expense reports within a specific timeframe (e.g., within 30 days of incurring the expense) to receive payment.
Employers may even set per diem (daily) limits for expenses like meals and lodging. These limits define the maximum amount an employee can spend and still be eligible for reimbursement.
What to Do If Your Employer Doesn’t Reimburse You
Check Your Employment Contract or Company Policy: Review the reimbursement policy in your employment contract or company handbook. This will give you a clearer understanding of what the company should cover.
Document the Expenses: Keep all receipts and records of the expenses incurred. Having documentation is crucial when discussing illegal paycheck deductions with your employer or filing a claim.
Speak to HR: If you believe you are entitled to reimbursement, start by addressing the issue with your manager or HR department. Present your evidence and the relevant company policy to support your claim.
File a Wage Claim: If your employer refuses to reimburse you for business-related expenses and the unpaid amount causes your pay to fall below minimum wage, you may be able to file a wage claim with the Department of Labor (DOL) or your state’s labor department.
Seek Legal Help: If the amount owed is significant or if your employer refuses to follow state or federal reimbursement laws, you may want to consult with an employment attorney like Rowdy Meeks Group LLC.
Understanding Expense Reimbursement as an Employee
Although federal law does not always mandate reimbursement, many state laws do, and employers are generally expected to cover necessary expenses.
If you’re unsure about your rights regarding expense reimbursement, contact Rowdy Meeks Legal Group LLC for a free case evaluation.