Importance of Employee Reimbursement for Business Expenses
As an employee, you might find yourself paying out of pocket for certain expenses related to your work. You may need to pay for a meal while meeting with a client, purchase some supplies for the students in your classroom, or fill up your work vehicle with gas during a long trip.
In New York, your employer must reimburse you for these expenses—and can face serious consequences if they refuse. However, many employers fail to obey this important law, leaving many workers with serious financial hardship.
Common Types of Employee Reimbursements
It is common to use your own money to pay for expenses related to your work. Over time, these purchases can add up and may have an impact on your financial well-being. There are many types of necessary business-related expenditures that your employer is required to reimburse, such as the following:
- Mileage or gas for work travel
- Meals during business trips and meetings
- Office supplies and equipment
- Uniform clothing and cleaning
- Business transaction expenses
- Seminar and training fees
- Postage and mailing expenses
- Telephone and internet charges
- Required subscription costs
- Car insurance for a work vehicle
- Wages for support staff members
Does Federal Law Require Worker Reimbursement?
Under the federal Fair Labor Standards Act (FLSA), workers are not explicitly entitled to reimbursement for work-related expenses. However, an employee may deduct the cost of these out-of-pocket payments from his or her overall wage. If these deductions cause the employee’s rate of pay to dip below the federal minimum wage, the employer could be held accountable.
In this situation, the employer would be required to pay a portion of the wages back to the employee. However, recovering compensation under the FLSA can be challenging, especially since the federal minimum wage is so low.
New York Laws on Employee Reimbursements
New York is only one of a handful of states that requires employers to pay their workers for any out-of-pocket work expenses. According to New York’s labor law, employers must reimburse their employers for their business expenses within 30 days from the date that they submit their expense report.
Failure to pay employees for these expenses can result in a misdemeanor charge against the employer. It is important to note that this law does not apply to bona fide professional, executive, or administrative employees who earn more than $900 per week.
What to Do If Your Employer Does Not Reimburse You
Although state labor laws require employers to reimburse their employees for business expenses, some companies refuse to compensate workers. They may claim that the expense is not a valid business reimbursement or that it wasn’t approved by the company in advance. As a result, many employees struggle to recover the compensation that they are entitled to receive for their work-related costs.
If you find yourself in this situation, remember that you are entitled to employee reimbursements for valid business expenses. A New York attorney with experience in employment law can help hold your employer accountable and recover the compensation that you deserve.
Your attorney can help you file a claim and gather the evidence necessary to prove your right to reimbursement. After your employer denies your expense claim, contact a lawyer as soon as possible to discuss your options and initiate your case.