Expense Reimbursements for Remote Workers

Even if a remotely-situated employee is not usually on an expense account, if they incur business-related expenses that would reduce their compensation below the federal minimum wage or relevant overtime rates, those expenses must be reimbursed up to the level of the minimum wage or equivalent OT level. In addition, 9 states also have regulations mandating reimbursement for required business expenses. Those states are California, Illinois, Iowa, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota and South Dakota. In addition, Illinois, California and the city of Seattle, WA, also have special requirements that apply even if the employee does not incur direct out-of-pocket expenses.