CCHP is committed to keeping you updated on these important changes both federally and on the state level. Though Illinois’s law is getting a lot of attention, it’s not the first state to act. Maintenance: According to AAA, the average annual maintenance cost for a car is about $1,200. Under newly enacted section 9.5 of the Illinois Wage Payment and Collection Act (“Act”) (effective January 1, 2019), employers are obligated to reimburse employees for all necessary expenses incurred within the scope of their employment. Travel: The map and search options below cover current laws and regulations for all fifty states and the District of Columbia. For example, in Novak, Defendant Boeing offered its employees the option of voluntarily participating in a virtual worker program. The employer’s written expense-reimbursement policy may not require employees to submit expenses less than 30 ... Other States. Novak v. Boeing Co., 2011 WL 9160940, at *3 (C.D. Nine states also require minimum paid rest periods for adult employees in the private sector. Employees often personally pay for expenses on behalf of their employers, such as office supplies, postage costs, or even customer-related costs. Other states, such as Illinois, Montana, New Hampshire, North Dakota, and South Dakota, have reimbursement laws similar to California, and the law in some states is a bit vague. Mar. Those states include: Illinois, California, Massachusetts, Montana, Pennsylvania, New York, Iowa, and the District of Columbia. New York City Employee Expense Reimbursement Attorney. For instance, where it is mandatory for employees to use their personal cell phones for work, generally they must be compensated for a reasonable percentage of their phone plans. Norton Rose Fulbright US LLP is a limited liability partnership registered under the laws of Texas. Once you understand your obligations, set clear guidelines for your employees. On the other hand, in Aguilar, a cleaning supplies sales company expected sales employees who worked from home to call customers and place internet sales orders. The court found an employer was required to reimburse its employees for personal cell phone and internet expenses because they "were a foreseeable and clearly anticipated cost of doing business." Norton Rose Fulbright Verein helps coordinate the activities of the members but does not itself provide legal services to clients. December 17, 2020. The Novak court explained that the additional internet and phone expenses incurred by Boeing's virtual workers was because the virtual workers "choose to work from home and potentially incur additional phone and internet expenses that would have been paid for by Boeing if the employees were working at Boeing's offices." Lab. Unlike California, Illinois’s new expense reimbursement law allows employers to establish written expense reimbursement policies specifying the amounts and requirements for any such reimbursements. This means that an employee can recover the costs associated with the business use of their personal cell phone, internet, and car. You must take specific legal advice on any particular matter which concerns you. Employers in California and similar jurisdictions should determine which of their employees are required to work remotely, what expenses employees may incur as a result of working from home, and determine if and how much of their remote work expenses must be reimbursed. Founded in 1949, Baker McKenzie advises many of the world’s most dynamic and successful business organizations through more than 4,100 locally qualified lawyers and 6,000 professional staff in 77 offices in 47 countries. December 17, 2020, Global | In the event of a large expense, such as the purchase of a printer or the repair of an internet connection, the expense should be reimbursed upon demand. A health care insurer that offers, issues for delivery, or renews in the state a health care insurance plan in the group or individual market shall provide coverage for benefits provided through telehealth by a health care provider licensed in this state and may not require that prior in-person contact between a health care provider and a patient before payment is made for covered services. West Virginia: HB 4003: Require telehealth insurance coverage of certain telehealth services after July 1, 2020. Employers therefore could be required to reimburse employees who are forced to work from home during the COVID-19 epidemic for their reasonable and necessary home office expenses, which may include a portion of the expenses associated with: However, this may not include other home office expenses which are merely at the convenience of the employee, such as higher-speed internet, computer monitors, ergonomic chairs, or printers. For help crafting your expense reimbursement policy, please contact your Baker McKenzie employment lawyer. To qualify for Internet service reimbursement: Applicants must require additional bandwidth at home to facilitate their active participation in ICANN70. Under California law, an employer that does not reimburse employees risks a lawsuit where the damages will include not just the unreimbursed expenses but the attorney’s fees incurred by the employee seeking reimbursement. The Firm is known for its global perspective, deep understanding of the local language and culture of business, uncompromising commitment to excellence, and world-class fluency in its client service. Check your state law to ensure compliance. The purpose of this statute is "to prevent employers from passing their operating expenses on to their employees." "For obvious reasons, this concept would also apply to require reimbursement at the state level if failure to do so would reduce the employee's pay below the applicable state minimum wage," she added. New York 6. This serves several purposes. For more information: www.bakermckenzie.com, Reimbursement Refresher: Cell Phone and Internet Expenses Related to Telecommuting in the US, Annual Equity Award Filing Chart: Filing & Reporting Requirements for Global Employee Share Plans, California Employers With 100 Or More Employees Must Report Pay Data By March 31, 2021, ERISA Claim Takeaways From 7th Circ. Similarly in Lawson, the court dismissed plaintiff's claim for reimbursement of his home internet where the evidence showed he had been provided with a company-owned mobile hot spot. For the duration of the pandemic, many employees will be forced to work from home. Whether you can receive a refund is dependent on the retailer's return and refund policies. Using the average MPG of 22 for most vehicles in the United States, that means that you’ll probably spend between $2,000 – $3,000+ per year on gasoline. Additionally, some states require that employees be paid on a specific schedule (weekly, bi-weekly, semi-monthly, or monthly). See Cochran v. Schwan’s Home Serv., Inc. CCHP helps you stay informed about telehealth-related laws, regulations and Medicaid programs. Under the California labor code, section 2802, all business use of a personal cell phone must be reimbursed. The Cochran case provides guidance on how to calculate a reasonable reimbursement for the mandatory use of personal devices such as cell phones: employers must compensate their employees for a "reasonable percentage" of the employee's cell phone bill under Section 2802. Assuming courts continue to follow the logic of Cochran and employers continue to require remote work but fail to fully reimburse employees for it, we will see many more class actions seeking reimbursement under Labor Code § 2802. In plain terms, Section 2802 requires California employers to reimburse all expenses their employees incur in performing their jobs, or that an employee incurs because he or she carries out the employer’s directions. If they live in California, Illinois, Iowa, Montana, or D.C., yes. Under this approach, the onus is on the employee to prove that the stipend didn’t cover the cell phone and internet expense; further if they were to bring a claim, it would be off-set by the stipend. 2020 has been a tumultuous year for the aviation industry. Aug. 27, 2014). Despite programs operated by state, federal and local governments aimed at recruiting and retaining primary care professionals to rural and underserved areas, the need outpaces the supply in many communities. Massachusetts 4. Other jurisdictions that already have expense reimbursement laws on the books include: 1. However, several states (including California, the District of Columbia, Illinois, Iowa, Massachusetts, Montana and New York) have specific state law requirements applicable to employee expense reimbursements. Even if employees have “unlimited” phone or internet plans, yes. Illinois Expense Reimbursement Law From checking emails and sending text messages to hosting video conferences, many professionals rely on cell phones as their mobile office. Where the expense is necessary, reimbursement could be required regardless of whether the employee would have otherwise incurred such expenses, as the Ninth Circuit indicated in a timely opinion this March. Global | Section 2802 liberally applies to many expenses that employees may be required to incur to perform their jobs, including vehicle expenses, travel expenses, and cell phone and internet plans. Reimbursement may also be necessary under California law even when an employee does not incur additional out of pocket costs. Publication | Effective January 1, 2019, Illinois will join the handful of jurisdictions around the country that require employers to reimburse employees for expenses incurred in connection with employment. It was reprinted with permission of the State Bar of California and the California Labor & Employment Law Review. State agencies may reimburse an employee for personal cellular phone, smartphone, (i.e. As if IRS regulations weren’t enough to keep up with, some states are adding their own expense reimbursement laws that your staffers will have to comply with, too.. Maintenance: According to AAA, the average annual maintenance cost for a car is about $1,200. Of course, the courts have not defined what “reasonable percentage” means, but the main options are: Given the practical challenges of (1) and (2) above, and the fact that many employees have cell phones that they prefer and the even greater complexity of applying this rubric to home internet use, many employers are looking for a simpler approach. The Illinois Wage Payment and Collection Act has been amended to require reimbursement of employees expenses, which may include higher ticket items like cellular phones, cellular data service fees, home computers and internet provider fees for employees who are expected to work remotely and more travel expenses. Applicants must have a valid personal bank account for ICANN org to wire the reimbursement funds. California’s expense-reimbursement statute has been particularly troublesome for employers. However, little guidance exists to prepare psychologists to navigate the legal, regulatory, reimbursement, and ethical issues that can arise when providing psychological services via technology. Norton Rose Fulbright US LLP, Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP and Norton Rose Fulbright South Africa Inc are separate legal entities and all of them are members of Norton Rose Fulbright Verein, a Swiss verein. You may access the article by clicking on the following link: 2802 Article. Last updated: January 2016. Unique COVID-Related Wage & Hour Issues Employers Need to Know, US Immigration Considerations During the Pandemic, 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, The Global Employer: Global Immigration & Mobility Quarterly Update | December 2020, Mandatory Vaccinations in the Workplace | What US Employers Should Consider Now, US Pay Equity and Transparency Developments: What You Need to Know Going Into 2021, EEOC Issues Much-Anticipated Q&A Guidance on COVID-19 Vaccinations, GC Agenda: Customer-Facing Employee Safety | Dec 2020 / Jan 2021. Reimbursement for a facility fee must be subject to a negotiated agreement between the originating site and the health carrier. A bill, HF 2160, would require Medicaid to reimburse telemedicine services at the same rate as in-person services, and not require a face-to-face consultation prior to telemedicine services. The law allows employees to sue their employer for reimbursement of the business use of their personal cell phone, internet, or even vehicle. Therefore, employers may wish to review their expense reimbursement policies in advance of the law’s January 1, 2019, effective date. Effective January 1, 2019, employers of five … 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. Given this, when crafting a nationwide policy, sometimes it’s simplest to use California as the high water mark. The employer may then consider whether to offer additional reimbursement or to decline the employee's claim. Below are summaries of state laws governing refunds of retail sales items: Alabama: There's no right to cancel contracts or purchase agreements. c. Your state – Massachusetts – takes a much more limited approach to employer-mandated reimbursements. A "necessary” expense is defined in section 9.5 as all reasonable expenses that: (a) are required by the employer in the discharge of the employees’ duties; and (b) are primarily for the benefit … As a result, many nonprofits need to revisit and update current reimbursement policies and communicate these changes to employees to mitigate against unexpected liability in this area. Some, particularly in tech, may be working from home through the end of the year, or even permanently! The health care workforce is stretched to its limits in most states. Illinois recently joined the growing state trend, requiring employers to reimburse expenses incurred by employees within the scope of their employment. 19, 2020). An employer should prepare a reimbursement form to facilitate the reimbursement … The potential obligation to reimburse employees for remote work expenses is not limited to California, however. Illinois has joined a number of other states (e.g.,California, Massachusetts, and Montana) in enacting expense-reimbursement statutory or regulatory provisions or addressing expense reimbursement obligations through agency guidance. Washington, DC. Using the average MPG of 22 for most vehicles in the United States, that means that you’ll probably spend between $2,000 – $3,000+ per year on gasoline. July 20, 2011). When creating or revising reimbursement policies, you must be mindful of the “de minimis” threshold and ensure that reimbursements reasonably compensate the employee for the expenditure. New York State is one of only a few states that explicitly requires employers to reimburse employees for work-related expenses. While expense reimbursement is only required if it is stipulated in an employment contract or if the business expenses bring the employee’s wages below minimum wage, most businesses reimburse work-related expenses incurred by employees as a job perk. 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. While expense reimbursement is only required if it is stipulated in an employment contract or if the business expenses bring the employee’s wages below minimum wage, most businesses reimburse work-related expenses incurred by employees as a job perk. If you require any advice or further information, please speak to your usual contact at Norton Rose Fulbright.© Norton Rose Fulbright LLP 2020. The information provided is only for research and informational purposes and should not be construed as legal counsel. 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