Alert: New Illinois Law Requires Employers to Reimburse Employee Expenses

Renee E. Coover | 4.17.19

A little known, and lesser talked about law passed in Illinois last year, and is starting to turn employers’ heads. In 2018, Illinois amended the Illinois Wage Payment and Collection Act (IWPCA), requiring employers to reimburse their employees for all expenses considered to be “necessary expenditures” within the employee’s scope of employment and directly related to services the employee performs for the employer.
The IWCPA amendment defines “necessary expenditures” to include all reasonable expenditures required by the employee to discharge employment duties that benefit the employer.
Thus, effective January 1, 2019, the new law requires employers to “authorize or require” the employee to incur an expense.
As employers are now finding out, the amendment impacts what employers are required to reimburse to an employee. For example, the new law arguably may require employers to reimburse an employee’s use of his/her personal cell phone for business use. However, if employers choose to do so, the amendment allows employers to establish a written policy, specifying the requirement and amount for such expense(s).
Employers can review the new law requiring employers to reimburse employee expenses here.

If you have questions regarding employment law, please contact Renee Coover at rcoover@byrdadatto.com.

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