Ever Consider…Should I Expense Reimburse That or Not?

Walker Lawrence
Attorney, Levin Ginsburg Attorneys at Law

If so, then you would have enjoyed being a fly on the wall during my recent exchange with Walker Lawrence, Attorney with Levin Ginsburg. I always enjoy our conversations and no doubt our most recent one raised a brow given many employers may not know yet.

Beginning January 1, 2019 Illinois Employers that have one or more persons working for them will be required to reimburse its 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 employer.” 820 ILCS 115/9.5. The act defines “necessary expenditures” as “all reasonable expenditures or losses required of the employee in the discharge of employment duties and that inure to the primary benefit of the employer.”

The law, however, provides certain protections to employers if they have a well drafted expense reimbursement policy. For example, an employee will not be entitled to any reimbursement under the new law January if: (1) the employer has an established written expense reimbursement policy and (2) the employee failed to comply. Additionally, an employee will not be entitled any expense reimbursement if it was not: (1) authorized by the employer, or (2) authorized by a written expense reimbursement policy.

Employers can also create cost containment for these expenditures by putting limits on the amount an employee can receive for a reimbursement so long as they are not de minimis or eliminates any reimbursement.

Under this new law, Employers may be required to start reimbursing employees for a number of expenses, including:

• Personal cell phone bills (even if the plan is unlimited)
• Cell phones (e.g. if they are used for work to clock in, check email, submit claims)
• Home internet
• Gas
• Home office expenses (paper, ink, pens, staples, stapler)
• Uniforms
• Costs to clean and maintain uniforms
• Tools
• Certain licenses that may be required to perform work (if it is not required by a state agency)

With virtual employees and many open to telecommuters, I can say it can’t hurt to give Walker Lawrence a call. Better yet, connect with him https://www.linkedin.com/in/walkerlawrence/ and meet for coffee. I know I enjoyed my time with him. As noted, having a policy in place before January 1, is a proactive step to side stepping a law you may not have heard of, and you can still draft a tailored policy before the law goes into effect in January.