Employee Reimbursement Law


Hi, everybody.

Welcome to another episode of ask Jade.

Today, I am going over a brand new law in Illinois that affects business owners and employers. It just took effect here in 2019 under the Illinois wage payment and collection Act.

If you’re a business owner, and you have employees, this is for you.  It requires you to reimburse your employees for all necessary expenses and losses incurred within the scope of their employment. It has to be a direct and primary benefit to you, the employer, and it has to be necessary and reasonable expenses. So the big thing here is that this shouldn’t require employer’s to reimburse their employees for cellphone use for work-related calls and messages because it’s something we all do now significantly.  So Illinois has been looking at how we do this especially when many of us have unlimited data plans and so what they would look at is a reasonable percentage of the employees phone bill based on how much they’re using it for work.

Now don’t worry there are some limitations and requirements here so the use of their personal cell phone has to be directed and improved by the employer so they cannot just go start using it just like “Hey reimburse me for this!”  You need to be aware of it and then also it must follow your individual reimbursement policy that you should have. If you don’t have one, contact me and we’ll make sure you have one in place. There are some limitations and protections in place. This is something you’ll want to bring up with your employees and once again you know to reach out to me if you don’t have a reimbursement policy in place . I can help you get one.

Jade Carpenter

(312) 809-8443