a) Primary
Benefit to the Employer
1) When determining if
an expense is to the primary benefit of the employer, the relevant factors are:
A) Whether the employee has any expectation
of reimbursement;
B) Whether the
expense is required or necessary to perform the employee's job
duties;
C) Whether the employer is
receiving a value that it would otherwise need to pay for;
D) How long the employer is receiving the
benefit; and
E) Whether the expense
is required of the job.
2) No single factor is dispositive; instead,
the analysis should focus on the extent to which the expense benefits the
employer and its business and business model.
b) Request for Reimbursement
1) If an employer denies a request for
reimbursement that should have been reimbursable according to subsection (a),
the following shall apply:
A) If an employer
has informed an employee that they are not entitled to seek reimbursement, or
has failed to respond to an employee's request for reimbursement, that shall be
considered a denial of reimbursement and the employee may file a claim against
the employer with the Department seeking reimbursement for expenses as provided
under subsection (a); and
B) If an
employee cannot recover expenses incurred related to services performed for the
employer during the course of the employee's employment, these expenses shall
be included in the final compensation owed to an employee at the end of the
employee's employment, in accordance with the Act.
c) Recordkeeping
An employer must maintain the following records pursuant to
this Section for 3 years:
1) All
policies regarding reimbursement;
2) All employee requests for
reimbursement;
3) Documentation
showing approval or denial of reimbursement; and
4) Documentation showing actual reimbursement
and supporting documents.
d) Employer Policies
If an employer's written expense reimbursement policy
establishes specifications or guidelines for necessary reimbursable
expenditures, but the employer, whether through direct authorization or
practice, allows for reimbursement of amounts that exceed those specified in
its written policy, the employer shall be liable for full reimbursement of such
expenses.
