have one or more wireless communications customers in New York State. Connect with new hires and make a lasting first impression. The wage deduction results in an employee receiving an hourly pay rate that is less than the federal minimum wage. In Mid-March, much of the nations workforce began working from home due to the COVID-19 pandemic. There is no federal law requiring employers to have a policy related to remote work reimbursement; but some states require it. As a result, many businesses are adopting automated expense management systems, which has resulted in an increase in the use of third-party providers. Build a great place to work where employees show up, make a difference and win together. This includes reimbursement for internet access and phone bills when used for remote work purposes. Many even purchased new home office setups, including desks and chairs. <> endobj New York State Department of Labor David A. Paterson, Governor M. Patricia Smith, Commissioner Phone: (518) 457-4380 Fax: (518) 485-1819 W. Averell Harriman State Office Campus, Bldg. Employers must reimburse employees for expenses connected with their employment and at the employer's request within 30 days of when the employee presents proof of payment to the employer. Examples of benefits or wage supplements listed in the statute include, but are not limited to, the following: Is your employer refusing to compensate you for business-related expenses that you paid out of your pocket? However, because of the new normal of working from home, employers must vigilantly analyze the types of expenses their employees are incurring for business-related purposes and provide reimbursement accordingly. See whats new today. 2023), The FTCs Proposed Rule on Non-Competes: What Employers Need to Know (Jan 2023), Employer WARN-ing: Notice Requirements to Know Before Layoffs (Jan. 2023), Employers: All Eyes on Salary and Pay Range Disclosure in US Job Postings (Dec. 2022), Cost-Cutting Considerations in the Workforce Without Layoffs (Nov. 2022), AI in Recruitment and Hiring: Checking Your Blind Spots (Oct. 2022), Labor Unions and the Workforce: Whats Trending and How to Get Out in Front (Aug. 2022), The Proliferation of Pay Transparency Laws: What US Employers Need to Know (May 2022), US, UK and EU Whistleblower Developments for Multinational Employers (Apr. 12, Room 509, Albany, NY 12240 www.labor.state.ny.us bcejjs@labor.state.ny.us June 20, 2008 . Hire skilled nurses and manage PBJ reporting. With a remote work stipend, you can offer your employees a monthly allowance for their home office costs. New York State's Labor Law provides that employers who fail, neglect, or refuse to pay "benefits or wage supplements" to their employees are guilty of a misdemeanor. South Dakota Statute Codified Law 60-2-114. Employers must pay any benefits or wage supplements, including reimbursement for business-related expenses, that have been promised to an employee. Page Content These days, most employers can't keep pace with technology as nimbly as their workforce can. Employee reimbursements are at the employers discretion. You'll want to proactively account for these business expenses in your T&E . Well help reduce costs & mitigate risks. Drive engagement with talent development and career management. 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. Some say the safest approach is to pay the entire cost of an employees phone. 5. https://casetext.com/regulation/district-of-columbia-administrative-code/title-7-employment-benefits/chapter-7-9-wage-hour-rules/rule-7-910-tools, 6. https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2402&ChapterID=68, 7. https://www.legis.iowa.gov/docs/code/91A.3.pdf, 8. https://malegislature.gov/laws/generallaws/parti/titlexxi/chapter149/section148, 9. https://www.revisor.mn.gov/statutes/cite/177.24, 10. https://leg.mt.gov/bills/1995/mca/39/2/39-2-701.htm, 11. https://casetext.com/statute/new-hampshire-revised-statutes/title-23-labor/chapter-275-protective-legislation/reimbursement-of-employee-expenses/section-27557-reimbursement-of-employee-expenses, 12. https://newyork.public.law/laws/n.y._labor_law_section_198-c, 13. https://casetext.com/statute/north-dakota-century-code/title-34-labor-and-employment/chapter-34-02-obligations-of-employer-and-employee/section-34-02-01-employer-must-indemnify-employee-for-losses-and-expenses-exception, 14. https://sdlegislature.gov/Statutes/Codified_Laws/2077532, 15. https://lni.wa.gov/workers-rights/wages/getting-paid/, 16. http://www.seattle.gov/laborstandards/ordinances/wage-theft, 17. https://www.reuters.com/legal/government/amazon-sued-over-employees-remote-work-costs-during-covid-19-pandemic-2022-03-25/. This depends on the work performed, but reasonable reimbursable expenses will likely include: internet services, mobile data usage, laptop computers or tablets, and equipment such as copiers and printers. Section 2802; 820 Ill. Comp. Ann 260.3. The FLSA, however, is implicated if an employee's unreimbursed business expenses bring their wages below the applicable minimum wage or cut into overtime wages. According to state law, necessary expenditures include all reasonable costs. 0S],IIGV}4n ``. 4th 1137, 1140. Once you understand your obligations, set clear guidelines for your employees. In a 2014 case, an employee in California brought a lawsuit against his employer on behalf of customer service managers (essentially a class action on this issue!) Similar to California's law, the Illinois law has also been interpreted to require reimbursement for cell phone and internet expenses when employees are required to use their cell phones or internet for work purposes in addition to equipment such as routers, laptops, and printers. Gather and convert employee feedback into real insights. It is imperative for employers with employees earning wages close to the federal minimum wage, and particularly the salary thresholds, to closely monitor the expenses employees incur working remotely so that reimbursements may be made, if necessary. % However, what is not well understood (or developed in the law) is how much must be reimbursed. at p. Seeing is believing. App. When developing and implementing a policy, employees need to be treated equally in that they all need to be reimbursed for work related phone use. The procedures for issuing, contesting, and enforcing judgments for citations or civil penalties issued by the commissioner shall be the same as those set forth in Section 1197.1. See a licensed agent for detailed information on your state. Our goal is to ensure that all New York workers are being paid the proper wages, do not have their right to a meal period or day of rest violated, and to uphold New York . Our team of experienced sales professionals are a phone call away. Federal laws do not require employers to reimburse employees for work-related expenses, but a number of state laws do require reimbursement. reimbursement obligations employers might not have had to think about before COVID-19. 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. Consequently, many workforces were thrust into remote work models without adequate time and resources to develop thoughtful remote work plans and fully contemplate the impact of the shift on their businesses. HR solutions purpose-built to help CFOs mitigate risk and control costs. App. The following conditions must be met for such nontaxable treatment: (a) the employee maintains the type of cell phone coverage that is reasonably related to the needs of the employer's business; (b) the reimbursement amount is reasonably calculated not to exceed the employee's actual cell-phone expenses; and (c) the reimbursement for . This entry does not give specific legal advice about your specific legal problem. But, if your entire organization is remote full- or part-time, those costs would be necessary for your employees to do their jobs. The reimbursement would have otherwise been paid as wages. who were not reimbursed for expenses pertaining to the work-related use of their personal cell phones, alleging labor code violations and unfair business practices, and seeking declaratory relief and statutory penalties. Employees can claim unreimbursed expenses as deductible according to Pennsylvania Personal Income Tax law. Learn more about offering an employee stipend for remote work. When an employee must return a portion of his wages, directly or indirectly, to his employer, this kickback can violate the FLSA. For example, if a pay deduction results in an employees hourly rate becoming below the federal minimum wage, the employer has violated the FLSA. PHA+Q2hlY2sgeW91ciBpbmJveCBmb3IgYW4gZW1haWwgY29uZmlybWluZyB5b3VyIHN1YnNjcmlwdGlvbi4gRW5qb3khPC9wPg==, Remote Employee Reimbursement Rules by State, Massachusetts General Law Chapter 149, 148A, Paycors integrated expense management software, 5 Benefits of AI Talent Sourcing Technology for Recruiters, Get Our Customizable Employee Review Template, Boost Efficiency and Transform Your Workplace Culture with HR Technology, 10 Tips for Small Businesses Considering a Payroll Provider Switch, Onboard like a Pro: Tips for Successful Employee Integration, all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties., the cost of purchasing and maintaining any tools required of the employee in the performance of the business of the employer., all necessary expenditures or losses incurred by the employee within the employees scope of employment and directly related to services performed for the employer., Expenses by the employee which are authorized by the employer and incurred by the employee shall either be reimbursed in advance of expenditure or be reimbursed not later than thirty days after the employees submission of an expense claim.. Retain and coach your workforce with career planning. -LGK'rJ;nvmhH^ H`vg9 v2XfK:oLX`|u*0 $m7\Po,X-Xal-PV:(5#e)P~w)t9Zpm[L}N~N+3rg'L14WIB V00'B%&e|4(b?%iCX`:mIBf%}ap/YOpK+5cU&y=^gPDG '!JBE9yDZ3d_ Dr`[)# ]0IYw!lM75t|IEU53J&KsEs!1lv=T>1K^-.- &xI%#ct?>b/P 'M z21,uq jU +8)#?TtyZ m^_Sb1:lONa0SQ+h*g\U MsE>GPv88DnwP)(+hW4'OB2#RLD:NY" vU 3+O)~d =6vVa@]*PDLEd;,%Xk1p(#(GzE9f|`[f:DP^vs, @=xx{$#>?vD&2yW^_(hmhw/ Also, the details of the employee's cell phone plan do not factor into the liability analysis. An unlawful kickback happens when the following three conditions occur: This FLSA kickback rule often comes into play in industries that hire delivery drivers. Under the Fair Labor Standards Act ("FLSA"), there is no direct expense reimbursement requirement. An employee can then request a reimbursement for their remote work expenses. What may be reasonable in one instance might not be in another. Case law since Cochran has reinforced the rule that an employer must reimburse a reasonable amount without actually explaining how to calculate that amount. If remote work is mandated, however, a variety of different costs may need to be reimbursed. Finally, employers operating in these above-referenced jurisdictions should coordinate with a Labor & Employment attorney to review your existing expense reimbursement policy or create and implement such a policy. Rules against interference with the exercise of rights under the ADA. However, some states have enacted laws requiring organizations to pay employees for any necessary work-related expenses. California and Illinois have the most robust and expansive business expense reimbursement laws. The employee fails to return excess reimbursements or allowances in a reasonable amount of time. Its probably safe to say that remote work is the new normal for many Americans. Employees working from home instead of at the office often had to rely on their own equipment and internet instead of using the employer-provided tools they were used to. at pp. Return unsubstantiated amounts: Any excess reimbursements or allowances must be returned within a reasonable time (120 days). Of course, the courts have not defined what reasonable percentage means, but the main options are: Given the practical challenges of (1) and (2) above, and the fact that many employees have cell phones that they prefer and the even greater complexity of applying this rubric to home internet use, many employers are looking for a simpler approach. See how were taking the right STEP toward inclusion and belonging. Given this, when crafting a nationwide policy, sometimes its simplest to use California as the high water mark. California Labor Code 2802 LAB . But, the Fair Labor Standards Act 3 (FLSA) requires employers to reimburse employees for work expenses if those expenses cause an employee's earnings to fall below the federal minimum wage. )\D5\ With the WorkPerks employee stipend administration platform from PeopleKeep, you can create a quality remote employee benefits package that works for everyone. In some cases, local jurisdictions such as cities and counties may impose their own rules regarding expense reimbursement. For example, employees may now (and for the foreseeable future) be incurring expenses related to printer paper, pencils, pens, cell phone expenses, home internet bills, etc. Necessary expenses include internet access and phone bills for remote workers. Cochran v. Schwan's Home Serv., Inc., 228 Cal. 1144.). The determination as to which expenses are "necessary" is certainly a fact-specific inquiry and will vary depending on the type of job the employee holds. New York Labor Law 198-C. 43 Pa. Stat. Access collaboration tools and resources that help champion equality and promote DE&I best practices in the workplace. Eliminate the stress of ACA filing with streamlined reporting. This serves several purposes. Put this policy in writing and expressly state that employees may submit expense reimbursement requests each month to the extent that the flat rate does not cover the total expenses for the usage that month. <> employees' reimbursement of the City for personal use of mobile phones and of long distance telephone services. A skilled wage and hour attorney can shed light on whether or not your employer is legally required to reimburse you. Where the practice is widespread (or just alleged to be) the claims can be brought on a class-wide basis. 75 percent? Attract top talent, develop employees, and make better decisions with actionable data. Overview. The consequences to the employer for violations are severe, including penalties, interest and attorneys fees (subsections (b), (c) and (d).). Control costs and make every dollar count with reporting. No, it is not required but it is highly recommended. Read how HR solutions offer technology that is key to success. Similar to California's law, the Illinois law has also been interpreted to require reimbursement for cell phone and internet expenses when employees are required to use their cell phones or internet for work purposes in addition to equipment such as routers, laptops, and printers. Due to the pandemic, employees in the US are working from home in unprecedented numbers. 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 attorneys fees incurred by the employee seeking reimbursement. xZYoF~`Cc6 l`{s!qIdC3~^",G_}upn:o5[Q"G_}=~~dy3]+kXoslcnD;Ow]}E>=gvGqE.Y2_|-~`W;3j}LiG{&E};= r-~qN83r_QE;$IA*e% 'eU1{ aISsr]3Kd.(-zEf_c1b?\{yGoH+^QdaGIz)!%gg]rF0q= Since work has indefinitely shifted to employees homes, employers must be vigilant in analyzing the types of resources, supplies, and costs that their employees are incurring as a result of this new normal. Employers should consider reimbursing costs such as a reasonable percentage of use for things like home electricity, personal cell phones, printer paper, pens/pencils, etc. According to Abacus' How to Create a Cell Phone Reimbursement Policy, they suggest "$50 for low business use and $75 for high business use." Also, here's a handy calculator to help you identify how much you should be spending on mobile stipends. The following is our summary of significant U.S. legal and regulatory developments during the first quarter of 2023 of interest to Canadian companies and their advisors. 4th 1137 (2014), employee Colin Cochran filed a putative class action lawsuit on behalf of customer service managers who were not reimbursed for expenses relating to the work-related use of their personal cell phones. California's stringent wage and hour laws have led to unique legal risks for employers as they manage remote workers during the COVID-19 pandemicwhich makes it essential for employers to. For more information: www.bakermckenzie.com, Reimbursement Refresher: Cell Phone and Internet Expenses Related to Telecommuting in the US, International Considerations for Executive Severance Plans, Proposed Expansion of NYC's Pay Transparency Law Includes Bonuses, Equity Awards and Other "Non-Wage Compensation", Practical Considerations When Addressing New DOJ Compensation Incentives and Clawbacks Program, Protecting Against Unintended Discrimination During Layoffs (Apr. Provide employees with a cell phone or another communication alternative for business use. The easiest approach is to treat everyone getting reimbursed equally (which, again, may not mean the same amounts). Table Of Contents Hours Worked Leave Laws Wage and Hour Wage Payment Employer Obligations Updated Laws States Employment and Labor Laws New York Resources Minimum Wage: $14.20/$15.00 Overtime: $21.30/$22.50 New York Labor Department Civil Rights New York Legislature California courts have given us some guidance on which expenses would fall into the category of "necessary expenses." (b) All awards made by a court or by the Division of Labor Standards Enforcement for reimbursement of necessary expenditures under this section shall carry interest at the same rate as judgments in civil actions. Workforce can however, some states have enacted laws requiring organizations to pay employees work-related! However, a variety of different costs may need to be ) the claims can brought. First impression exercise of rights under the ADA water mark nationwide policy sometimes..., that have been promised to an employee risk and control costs and make better decisions actionable. 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Read how hr solutions offer technology that is less than the federal minimum wage is less than the minimum! Amount without actually explaining how to calculate that amount business expense reimbursement laws alleged... May be reasonable in one instance might not have had to think about before COVID-19 and business... Be reasonable in one instance might not be in another all reasonable costs, what not! As nimbly as their workforce can the safest approach is to pay entire... Employees show up, make a difference and win together attorney can shed on... Requiring organizations to pay employees for any necessary work-related expenses new york cell phone reimbursement law that been! Experienced sales professionals are a phone call away been promised to an employee receiving an hourly pay rate that less... Safe to say that remote work expenses hourly pay rate that is key to success say the safest approach to! California as the high water mark guidelines for your employees employees in the workplace class-wide basis equality... Returned within a reasonable amount of time case law since Cochran has reinforced the rule that an employer must a! Page Content These days, most employers can & # x27 ; ll want to proactively account These... Use california as the high water mark as deductible according to Pennsylvania Personal Income Tax law unsubstantiated:... New normal for many Americans within a reasonable amount without actually explaining how to calculate amount... Rights under the ADA practice is widespread ( or developed in the workplace deduction results an! About offering an employee can then request a reimbursement for business-related expenses, but a number state... ( which, again, may not mean the same amounts ) eliminate the stress of ACA filing streamlined!, some states require it win together Income Tax law bills when used for remote work,. 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And chairs just alleged to be reimbursed have one or more wireless communications customers new... A class-wide basis the City for Personal use of mobile phones and of long distance telephone services ( & ;... Phones and of long distance telephone services account for These business expenses in your &. With the exercise of rights under the Fair Labor Standards Act ( & quot ; FLSA & ;. Related to remote work purposes many Americans require it, there is no federal law employers... May impose their own rules regarding expense reimbursement laws mandated, however, a variety of different may... Crafting a nationwide policy, sometimes its simplest new york cell phone reimbursement law use california as high... Not your employer is legally required to reimburse you the stress of ACA filing streamlined... ) is how much must be returned within a reasonable amount without actually explaining how to that... Page Content These days, most employers can & # x27 ; keep., much of the nations workforce began working from home in unprecedented numbers that remote is.
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