The New Illinois Expense Reimbursement Law Can Be Costly
Recently, Illinois Governor Bruce Rauner approved an amendment to the Illinois Wage Payment and Collection Act (IWPCA). Effective January 1, 2019, Illinois employers are required by statute to reimburse employees for work-related expenses or losses that employees incur in the scope of their employment.
Employers do not have to reimburse employees for unauthorized expenses, such as expenses that are not required for the employee to perform their job. Employers may draft written policies for work-related expense reimbursement which may include reasonable caps on expenses and other guidelines. A well-documented expense reimbursement policy is vital because an employer is not required to reimburse employees when employees do not adhere to the employer’s written expense reimbursement policy.
Employers should adopt written expense reimbursement policies, or review existing policies, before the amendment’s effective date, January 1, 2019, to verify that they have well-defined procedures and rules in place to avoid potential liability. Illinois employers can anticipate IWPCA claims being filed for vehicle expenses, mobile device charges, home office expenses, and internet data-related fees. IWPCA would permit the filling of a class action by employees for failure to reimburse work-related expenses which could prove quite costly.
• Review your current policy
• Have your professional draft an expense reimbursement policy
• Enact the reimbursement policy before December 31, 2018
Call us so we can help you draft a comprehensive expense reimbursement policy before the laws effective date of December 31, 2018.