Reimbursement for state use of personal cellular phone, smartphone, and internet services. The health care workforce is stretched to its limits in most states. See Herrera v. Zumiez, Inc., _ F.3d _, 2020 WL 1301057, at *11 (9th Cir. Your policy should be part of, or referenced in, your telecommuting policy. Other states, including Illinois, Iowa, Montana, New Hampshire and South Dakota, have enacted laws which may require reimbursement of employee expenses, although case law in these states is not as well-developed as in California. 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. Alaska, California, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Montana, New Hampshire, New York, North Dakota, Pennsylvania, South Dakota, and Washington, DC all have enacted statutes which bear on expense reimbursement. 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. 4th 554, 562 (2007) (internal citation omitted). New York City Employee Expense Reimbursement Attorney. Meanwhile, some states like Illinois expressly permit employers to adopt written policies designed to reasonably control employees’ job-related expenses – which is a good practice to consider. Due to the pandemic, employees in the US are working from home in unprecedented numbers. Given these requirements, reimbursement of expenses is yet another factor that employers must consider when determining whether to allow, strongly encourage, or require their employees to work from home as the country seeks to curtail the spread of COVID-19. 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. 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. 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. 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. 19, 2020). As COVID-19 continues to spread across the United States, it is anticipated that a large portion of the workforce will be asked to work from home for their own protection and for the protection of others. Keep in mind that some states, like California and, more recently, Illinois require employers to reimburse employees’ reasonable work-related expenses. 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." Reimbursement policies should state the deadline for employees to submit reimbursement requests and should require necessary documentation, such as receipts, to support each expenditure. In states that require reimbursement for business expenses, most require the reimbursement within 30 days. A: Under the FLSA, if the cost would reduce the employee’s pay below the minimum wage or cut into overtime, the reimbursement must be made no later than the next regular payday. 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. Maintenance: According to AAA, the average annual maintenance cost for a car is about $1,200. 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. Click this map of DSMES coverage by state external icon to learn which states have laws that require such coverage for both private insurance plans and Medicaid, and to find information on legal requirements for when DSMES coverage is triggered, what specific activities are covered, and the standards that DSMES must meet. Illinois has joined a number of other states … December 17, 2020, Global | Below are summaries of state laws governing refunds of retail sales items: Alabama: There's no right to cancel contracts or purchase agreements. Aug. 27, 2014). 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. 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. One participant sued Boeing under California's reimbursement law, alleging that his home office expenses were not reimbursed. 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. Trend Watch: The First Wave of COVID-Related Employment Litigation — What's on the minds of employers and litigators during COVID-19? Spare No Expense: With IWPCA Amendment, Illinois Joins Ledger of States Requiring Reimbursement of Employee Expenses October 24, 2018 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. Once you understand your obligations, set clear guidelines for your employees. New York 6. From checking emails and sending text messages to hosting video conferences, many professionals rely on cell phones as their mobile office. You may access the article by clicking on the following link: 2802 Article. Those states include: Illinois, California, Massachusetts, Montana, Pennsylvania, New York, Iowa, and the District of Columbia. 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. 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. 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. 2020 has been a tumultuous year for the aviation industry. For the duration of the pandemic, many employees will be forced to work from home. See Norton Rose Fulbright's additional COVID-19 resources. With approximately 700 lawyers globally, Baker McKenzie’s Employment & Compensation group is the largest in the world and the only one to be ranked Band 1 by Chambers Global in 2020. In some cases, this will require a monthly stipend. Cal. Local zoning regulations might require a remote employee working from home to get a zoning variance from the locality. CCHP is committed to keeping you updated on these important changes both federally and on the state level. Even if employees have “unlimited” phone or internet plans, yes. 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. Illinois recently joined the growing state trend, requiring employers to reimburse expenses incurred by employees within the scope of their employment. 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