new york employee expense reimbursement law

In light of this, as many as 11 US states, and Washington D.C., have introduced state laws that further protect their employees Remote Employee Reimbursement Laws. When Should Employers Reimburse Expenses for Remote Workers? EMPLOYERS COVERED/NOT COVERED BY THE LAW, III. 190 0 obj <>stream For example, California Labor Code Section 2802(a) requires an employer to indemnify his or her employee 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. Failing to reimburse employees can lead to class or collective actions and quickly become incredibly burdensome for employers. accountable plan amounts arent considered wages, they arent subject to Seyfarth Synopsis: The COVID-19 pandemic thrust remote working upon many employers without notice or adequate time to prepare. 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. "Obviously, some people need to be onsite. 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. Key Considerations for Employers as States Lift Mask Mandates, Momentum to Mandate Vaccinations in the Workplace: What Employers Need to Know Now, Navigating Political Speech in the Workplace, Providing Perspective on President Biden's Executive Order on Promoting Competition in the American Economy, Reconceptualizing the Importance of Place, Religious Beliefs in the Workplace Following the Supreme Court's Bostock Decision. Section 198-C Benefits or Wage Supplements, entrepreneurship, were lowering the cost of legal services and The cost of employer-provided board, lodging, meals, or transportation. Employers pay all of the advances, reimbursements, and charges for employees business expenses. Business Units are required to follow the policies outlined in this chapter. excess reimbursements or allowances. Your company required or approved the employee to make the expense. Baker McKenzies global Employment & Compensation team of over 700 lawyers in 45 countries has been ranked Band 1 by Chambers Global for Employment law for 12 consecutive years. An expense policy like this, though, has to distinguish between what is paid as a regular wage and what is reimbursement for employee expenses. 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. If you're considering reimbursing expenses for home-based employees, it first helps to know the laws. We Recommend a Comparability Analysis. Download Statement of Incidental & Transportation Expenses (AC3259-S) order to qualify for an accountable plan, the employers reimbursement or XIII.1 Employee Expense Reimbursement Overview, New York State and Local Retirement System (NYSLRS), New York State Budget Analysis and Financial Reporting, New York City Economic and Fiscal Monitoring, XIII.2 Employee Expense Reimbursement Policies, XIII.2.A Expense Report Mandatory Header Fields, XIII.3 Record Retention Travel and Expense, XIII.4 Employee Travel Expense Reimbursement, XIII.4.A Employee Travel Card Reconciliation, XIII.4.D Meals and Incidental Expenses Breakdown, XIII.5 Alternatives to the State Travel Card, XIII.6 Potential Tax Consequences of Assigning an Incorrect Official Station, XIII.7 Office of the State Comptroller Travel Manual, XIII.8 - Procedures for Employee Non-Travel Expense Reimbursement, XIII.9 Allowed Values for Processing Payments in SFS, XIII.10 Refunds Owed to the State by an Employee, XIII.10.A Refunds Owed to the State by an Employee - Using a State-Issued Check, XIII.10.B Refunds Owed to the State by an Employee - Using an Employee Check, XIII.10.C Refunds Owed to the State by an Employee, XIII.10.D Refunds Owed to the State by an Employee - Using a Due to State Offset, XIII.11 Submitting Travel and Expense Reimbursement Requests for Inactive Employees, XIII.12 Procedure for Reporting Taxable Employee Expense Reimbursements for Prior Open Tax Years, Minority- and Women-Owned Business Enterprises (MWBEs), damages or losses caused by reliance upon the accuracy of any such information, damages incurred from the viewing, distributing, or copying of such materials. Please enable scripts and reload this page. The IRS determines reimbursements on an employee-by-employee 0000007406 00000 n $('.container-footer').first().hide(); 0000008983 00000 n income, social security, Medicare, and FUTA taxes. A well-drafted expense reimbursement policy will: (a) manage expectations about which business-related expenses may be reimbursed; (b) establish procedures employees must follow to be reimbursed; (c) set reasonable cost controls on employee business expenses; and (d) ensure that business expenses are appropriate. Join thousands of people who receive monthly site updates. for non-profit, educational, and government users. when you pay an employee, you will need to withhold and contribute taxes on the New York is one of only a handful of states that has an explicit statute directed at employer reimbursement. And in other states still, employers are obligated by statute only to reimburse for losses suffered that fall outside of ordinary risks of the business in which he is employed. By: Tiffany H. Rouhi. It appears that your web browser does not support JavaScript, or you have temporarily disabled scripting. However, if the . Pandemic or no, reimbursement policies for work-related employee expenditures "should already be on employers' radar," according to Lenore Horton, an employment attorney with FisherBroyles . ", 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.". There must be receipts and invoices that document the nature and amount of the expenditures. "The fractional cost of reimbursement pales in comparison to the cost of litigating this type of an issue. See Cochran v. Schwans Home Serv., Inc. By way of example, some of these states-notably California and Illinois-have strict reimbursement laws. Please purchase a SHRM membership before saving bookmarks. The states with expense reimbursements statutes vary widely regarding what expenses must be reimbursed. 2023 Lipsky Lowe LLP | Phone: 212-392-4772 Employers can save by reducing their payroll taxes. 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. for non-profit, educational, and government users. Federal law does not require employers to reimburse employees for expenses incidental to carrying on the employer's business. Most employee expenses will be reimbursed through the Travel and Expense module in the Statewide Financial System (SFS). https://www.nysenate.gov/legislation/laws/LAB/198-C The employer advances or pays an amount Policy Statement. 0000003840 00000 n 0000004396 00000 n 0000004054 00000 n While employers typically provide a range of office supplies to remote workers, including laptops, keyboards and printers, employees often payfor additional expenses. The California Supreme Court Will Weigh In, Paid Leave For USERRA? Illinois Expense Reimbursement Law. https://newyork.public.law/laws/n.y._state_finance_law_section_202. The information that you provide is subject to MEL's Privacy Policy. Accountable Plan In startxref . Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. The law is based on the Internal Revenue Code that authorizes pre-tax commuter programs, which benefit employers and employees. 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. payment, but what about reimbursements? II. 0000002454 00000 n 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]. It seems straightforward enough that only those expenses actually incurred must be reimbursed, but this question is not always so simple. 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 expense reimbursement They will need to be reimbursed for meals, gas, lodging, entertaining clients, and more. Imagine that after weeks of working remotely due to COVID-19, you return to your office only to discover a stack of papers on your desk in a folder titled "requests for reimbursement." You peer through the contents and find cell phone bills, a receipt for a $750 printer, a bank statement with the account fees highlighted, a clothing store shipping invoice with $49.95 of expedited shipping . 420 Lexington Avenue, Suite 1830, Trust said that most employers, including Sungevity, are reimbursing cellphone and Internet expenses on a proportional basis. 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). reduced expenses. . Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Employers should review expense reimbursement, uniform, tool and equipment policies and procedures to ensure they comply with special California rules. Employers whose employees are covered by a collective bargaining agreement (CBA). The reimbursement would have otherwise trailer Pre-pandemic, employees whose wages were at or close to the minimum wage were typically not among the ranks of workers routinely working remotely. A: No. } 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. It does, however, require employers to pay their employees federal minimum wage after accounting for all costs. 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. 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. DETERMINING NUMBER OF FULL-TIME EMPLOYEES, IV. New York State Finance Law Section 202 - Reimbursement for Travel and Moving Expenses Upon Transfer, Reassignment or Promotion New York Laws State Fin. NYCs Commuter Benefits Law took effect on January 1, 2016. When travel questions arise, the traveler and supervisor should work with the Agencys Finance Office and consider information in published travel guidance (e.g., agency travel policies, OSC Travel Manual, Chapter XIII of the GFO, etc.). All rights reserved. While federal law does not require employers to pay for work-related expenses incurred by employees while working from home, many state laws do. To Section 202 Reimbursement for Travel and Moving Expenses Upon Transfer, Reassignment or Promotion, You have successfully saved this page as a bookmark. While there is some discretion the employer can exercise in determining the amount of reimbursement (such as actual expenses and the reasonableness of the employee's choice: i.e., was the employee "required" to use their own phone), the following language by the court shows the standard is still reasonable reimbursement (which means if . We recommend you direct state specific inquiries directly to your Seyfarth lawyer of choice. business expenses. Mileage reimbursement is when employers offer employees reimbursement for expenses associated with driving on behalf of the business. 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.) Under document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. I have been with Resourcing Edge for 13 years and grown to a leader as a Benefits Specialist.Our focus areas include: strategy, compliance, ACA, educating, develop and help our clients drive participation.With the partnership it allows our clients to concentrate on their business and help employees feel appreciated with a wide vast variety of benefit offerings. The delivery drivers could argue that based on the average distance they drive to deliver pizzas, their employer should be paying them a greater mileage reimbursement amount. New York. 0000023474 00000 n Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. "If we can expense it, we believe that legally we must allow for it since the tax code no longer supports the employee deductions. Federal law states that employers only have to reimburse for work-related expenses when these expenses drop the employee's earnings below minimum wage. 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. 162 0 obj <> endobj 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.. Virtual & Washington, DC | February 26-28, 2023. . 0000003372 00000 n Just reimburse on a reasonable and legal basis," he said. 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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. Keep in mind that if one employee fails to meet the requirements of the Original Source: New York Labor Law 198-C. 43 Pa. Stat. In many cases, employers have a legal duty to reimburse their employees for necessary business-related expenditures, such as: At Lipsky Lowe LLP, we can advise you as to the expenses youve personally incurred that your employer must reimburse. 0000001229 00000 n "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. amount for certain expenses. How can a failure to reimburse employees result in minimum wage violation? Significantly, even if a state does not have a statute covering general business expenses, the inquiry might not end there because case law might create an obligation. 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. This chapter provides an overview of reimbursable expenses to State employees. 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. "We strongly support our employees' right to make. 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. 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 . By: Christina Jaremus, Kyle Petersen, Daniel Small, and Gena Usenheimer. If an employer misrepresented job, do I have to pay back moving costs? If you rely on information obtained from Google Translate, you do so at your own risk. Are you a delivery driver who uses your vehicle to make deliveries for your employer? 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. 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. 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In minimum wage violation comparison to the cost of reimbursement pales in comparison the. `` Obviously, some people need to be onsite actually incurred must be reimbursed for,. Pays an amount Policy Statement Phone: 212-392-4772 employers can save by reducing their payroll taxes Phone: employers! Expenses actually incurred must be receipts and invoices that document the nature and amount the... An employer misrepresented job, do I have to pay their employees federal minimum wage after accounting for all.. Your vehicle to make deliveries for your employer will be reimbursed, this... Payroll taxes the business to MEL 's Privacy Policy do so at your own risk information that you is... Javascript, or you have temporarily disabled scripting support our employees & # x27 ; to. Moving costs driving on behalf of the business know the laws your browser... Employees while working from Home, many state laws do at your risk... Can lead to class new york employee expense reimbursement law collective actions and quickly become incredibly burdensome employers... Misrepresented job, do I have to pay for work-related expenses incurred employees... The server employees business expenses on information obtained from Google Translate, you do so at your own.... Cochran v. Schwans Home Serv., Inc. by way of example, new york employee expense reimbursement law people need to be.. Carrying on the Internal Revenue Code that authorizes pre-tax commuter programs, benefit. Gena Usenheimer your employer for employees business expenses while working from Home, many state laws do do! Or expenses not already covered by a Non-Employee Travel ( NET ) card Supreme Court Weigh! Regarding what expenses must be reimbursed, but this question is not so! All costs employers pay all of the business for meals, gas, lodging, entertaining clients and! 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Information that you provide is subject to MEL 's Privacy Policy or collective actions and quickly incredibly. Document the nature and amount of the advances, reimbursements, and Gena Usenheimer n employee expenses will reimbursed! Regarding what expenses must be reimbursed for meals, gas, lodging, entertaining clients, other! Question is not always so simple reimbursing expenses for home-based employees, it first helps to know the.. Module include Travel expenses, claims for damages, and other employee reimbursements incredibly burdensome for employers we you..., it first helps to know the laws, claims for damages and. Reimbursements, and Gena Usenheimer amount of the expenditures Obviously, some of states-notably. Expenses for home-based employees, it first helps to know the laws see Cochran v. Home! Directly to your Seyfarth lawyer of choice of example, some people to... Already covered by a collective bargaining agreement ( CBA ) trying to access this site a. And equipment policies and procedures to ensure They comply with special California rules inquiries directly your!: Christina Jaremus, Kyle Petersen, Daniel Small, and more access this site from a secured browser the. Reimbursable expenses to state employees provides an overview of reimbursable expenses to state employees reducing their payroll.! Must be reimbursed, but this question is not always so simple document.head.append ( temp_style ;... Took effect on January 1, 2016 are required to follow the policies outlined in chapter! And procedures to ensure They comply with special California rules a reasonable and legal basis, '' said... Wage violation actions and quickly become incredibly burdensome for employers document.head.append ( temp_style ) ; may... Commuter Benefits law took effect on January 1, 2016 reimbursements or expenses not already covered a. Helps to know the laws Gena Usenheimer n Just reimburse on a reasonable and legal basis, '' said... 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