We recently attended a workshop about Employment Law updates for 2019. One significant bit of information will help both our small business colleagues and those of you working for larger companies that may have gaps in their policies.
Reimbursement of Employee Expenses
As it relates to expense reimbursement to employees, a new amendment takes effect January 1, 2019. This law will supersede Federal Law. In summary, employees must be reimbursed for all necessary expenditures directly related to services performed for the employer. Per the regulation: “necessary expenditures” means all reasonable expenditures or losses required of the employee in the discharge of employment duties and that inure to the primary benefit of the employer. An employer is not responsible for losses due to an employee’s own negligence, losses due to normal wear, or losses due to theft unless the theft was a result of the employer’s negligence.
Note that there are exceptions, if the company has a written policy:
If the written expense reimbursement policy of an employer establishes specifications or guidelines for necessary expenditures, the employer is not liable under this Section for the portion of the expenditure amount that exceeds the specifications or guidelines of the policy so long as the employer does not institute a policy that provides for no reimbursement or de minimis reimbursement.
So there are two points to our post
- Ensure that you create a written policy for your company, regarding employee reimbursement
- Make certain you are in compliance with the policy
You may read the full piece of legislation on this topic here
Additional new Illinois laws and regulations of recent note.
Here are just a few:
- Illinois Human Rights Act
- Illinois Health Care Violence Prevention Act
- Medical Marijuana
- Nursing Mothers in the Workplace