United States:
Masuda Funai Employment Newsflash – Reimbursing Remote Employee Expenses
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As employees continue to work remotely, companies must ensure
that employees are being reimbursed for business-related expenses,
including cell phone and home internet usage, paper, toner,
printers and other work-related supplies. Several states have
specific statutes that address employee expense
reimbursement. In Illinois, companies must reimburse
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
company. The statute defines “necessary expenditures” to
mean all reasonable expenditures or losses required of the employee
in the discharge of employment duties and that primarily benefit
the company. An employee is not entitled to reimbursement under the
statute if: (i) the company has an established written expense
reimbursement policy, and (ii) the employee failed
to comply with the written expense reimbursement policy. In
addition, a company is not liable under the statute, unless the
company authorized or required the employee to incur the necessary
expenditure or the company failed to comply with its own written
expense reimbursement policy.
Because many employees are working remotely, companies should
ensure they have an expense reimbursement policy and that employees
who are working remotely are being reimbursed for expenses that
benefit the company.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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