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.
FAQs
Do remote workers in New York have the right to be reimbursed for home office expenses?
Yes. New York Labor Law § 198-C defines reimbursable expenses broadly to include any legitimate work-related costs, which extends to remote employees who incur necessary business expenses such as a portion of their internet service, work-related phone charges, and required equipment or supplies the employer does not provide. Employers who require remote work without providing equipment or adequate stipends may be violating the reimbursement law if those costs effectively reduce an employee’s net compensation below lawful wage minimums.
What records should I keep to support an expense reimbursement claim in New York?
Employees who may need to pursue an unreimbursed expense claim should retain all receipts, invoices, and bank or credit card statements documenting business-related purchases, along with detailed mileage logs that include dates, destinations, and the business purpose of each trip. Submitting expense reports through your employer’s official internal system and saving copies of those submissions, as well as any denial communications or requests for additional documentation, creates a paper trail that directly supports a legal claim if the employer later refuses to pay.
What is New York’s standard mileage reimbursement rate for work-related driving?
New York does not mandate a specific mileage reimbursement rate by statute. Most employers use the IRS standard mileage rate, which is updated annually and serves as a widely accepted benchmark for reasonable reimbursement – currently set at 72.5 cents per mile for 2026. While reimbursing below the IRS rate is not automatically illegal, total compensation after accounting for unreimbursed mileage costs must not fall below the applicable minimum wage, or the employer may face a wage violation claim in addition to the unreimbursed expense issue.
Can my employer require expense report submissions as a condition of reimbursement in New York?
Yes. New York law permits employers to establish reasonable internal procedures for expense reimbursement, including requiring employees to submit documentation within a defined timeframe. Under New York Labor Law § 198-C, employers must pay approved reimbursements within 30 days of submission. However, an employer cannot use overly burdensome documentation requirements, indefinite delays, or repeated requests for additional information as a means of avoiding its legal reimbursement obligation.
Can I file a wage claim with the New York State Department of Labor for unpaid business expense reimbursements?
Yes. If your employer has failed to reimburse you for legitimate work-related expenses, you can file a wage complaint with the New York State Department of Labor, which has authority to investigate and order payment of amounts owed. You also have the option of pursuing a private civil lawsuit, which may allow recovery of the unpaid amounts plus interest, liquidated damages, and attorney’s fees. Consulting with an employment attorney before choosing between these options helps ensure you select the most efficient route and preserve all available legal remedies.