 2< 24.16.2519 PAYMENTS NOT FOR HOURS WORKED AND REIMBURSEMENT FOR EXPENSES (1) The term "regular rate" shall not be deemed to include "payments made for occasional periods when no work is performed due to vacation, holiday, illness, failure of the employer to provide sufficient work, or other similar cause; reasonable payments for traveling expenses, or other expenses, incurred by an … And for commercial drivers, the handheld cellphone ban also applies when the vehicle is temporarily stopped for reasons like traffic, stop signs, and red lights. Mobile management overhead 3. Such a claim would not include the potential recovery of liquidated damages and attorney’s fees, as are available under the IWPCA. Contact Our NYC Wage Theft Attorneys. This figure varies depending on the company and the agreed-upon policy. It can wait!Make our roads safer and save lives. Employment expenses that commonly go unpaid include: If you have questions about expense reimbursement, consult our knowledgeable employment law attorneys. Exceptions: (whoever is responsible for reimbursement to acknowledge receipt at the time you deliver your next request for reimbursement). Maybe ask your payroll dept. Cell phone usage; Uniforms; Materials; Equipment and tools; License and permit fees; If you have questions about expense reimbursement, consult our knowledgeable employment law attorneys. It might make sense to implement a two-tier reimbursement policy: one for heavy business cell phone users, such as sales, and one for those who only sometimes use their phones for business. New York State Employee Expense Reimbursement Law New York is one of only a handful of states that has an explicit statute directed at employer reimbursement. Although you correctly assert that “there is no law in New York that requiresemployers to pay or reimburse employees for business related expenses” (emphasis in original) you have failed to take note that it is the long-standing interpretation of Labor Law §198-c that such statute imposes on an employer the requirement to “abide by the terms of his agreement to provide benefits,” (Glenville Gage v. 2. Ne… Be smart and familiarize yourself with the special "Texting Zone" locations along the New York State Thruway and State Highways. Cell phones are one category of technology that affects virtually everyone in today’s society and employers are wise to proactively establish policies about their use in the workplace. This law became effective December 1, 2001 violators may be issued a ticket for a traffic infraction, resulting in a fine of up to $200. Reimbursement Obligations There is no federal requirement to reimburse employees for business-related expenses. The Cochran case provides guidance on how to calculate a reasonable reimbursement for the mandatory use of personal devices such as cell phones: employers must compensate their employees for a "reasonable percentage" of the employee's cell phone bill under Section 2802. New Yorks Cellular Phone Law. However, several states (including California, the District of Columbia, Illinois, Iowa, Massachusetts, Montana and New York) have specific state law requirements applicable to employee expense reimbursements. For more on the new employment laws in general, see our article “Changes to Illinois Employment Laws for 2019” How to be Reimbursed for your Cell Phone. Carrier fees 2. Similarly, Illinois requires reimbursement of all “necessary expenditures or losses” an employee incurs within the scope of employment that are “directly related to services performed for the employer,” unless the employer has a written reimbursement expense policy and the employee fails to comply with that policy. Recently, Illinois modified its Wage Payment and Collection Actto include expense reimbursement rules. Is It Time to Beef Up New York’s Paltry Minimum Wage? See: Section 198c of the New York State Labor Law Section 198c. New York law prohibits all drivers from engaging in a call with a handheld phone while driving a vehicle that’s in motion. The Court of Appeals, however, found the issue of damages was more complicated. These payments are referred to as mobile stipends. California’s Labor Code Section 2802(a) states that:. If you are not exempt as per paragraph 3 below they get 30 days to pay. Employment Laws known as Labor Standards. Those states include: Illinois, California, Massachusetts, Montana, Pennsylvania, New York, Iowa, and the District of Columbia. Reimbursement may also be necessary under California law even when an employee does not incur additional out of pocket costs. What we can say for certain is that the risk of liability will be significantly reduced if the employer is providing reimbursement and can show a good-faith effort to set a reasonable rate for the reimbursement. Illinois Expense Reimbursement Law. Download: New Threat to “Bring Your Own Device” Policies: Employer Required to Reimburse Personal Cell Phone Expenses Under New York State law you cannot use a hand-held mobile telephone or … The appellate court disagreed and held that reimbursement is always required, and that to comply with section 2802 the employer must pay a “reasonable percentage” of the employee’s cell phone bill. Illinois was the newest addition this year. As a result, employers reasonably took the position that expense reimbursements were not “wages” and thus were not covered by the IWPCA. Which states are at the forefront of this legislativemovement? The employee submitted the expense for reimbursement with proper supporting documentation* (i.e., a receipt) within 30 calendar days of when it was incurred. Benefits or wage supplements. This alert examines these regulations, which set forth the requirements for making authorized lawful deductions from employee wages under Section 193 of the New York Labor Law (NYLL), plus describe the mandatory requirements for recovering overpayments due to … An employee claiming he or she was not properly reimbursed would have to characterize it as a breach-of-contract claim. To find out if you have a claim, contact us online or call our law office at 917-639-5350 or toll free 1-877-390-8732. If you drive for work or purchase materials, permits or anything else that is essential to your ability to do your job, your employer should reimburse you for the expenses. Q: What constitutes a reasonable reimbursement amount? Because of the differences in cell phone plans and worked-related scenarios, the calculation of reimbursement must be left to the trial court and parties in each particular case. endstream endobj 163 0 obj <>/Metadata 31 0 R/AcroForm 164 0 R/PieceInfo<>>>/Pages 30 0 R/PageLayout/OneColumn/OCProperties<>/OCGs[165 0 R]>>/StructTreeRoot 33 0 R/Type/Catalog/LastModified(D:20100714110952)/PageLabels 28 0 R>> endobj 164 0 obj <>/Encoding<>>>>> endobj 165 0 obj <. Our international staff speaks Polish, Spanish, Chinese (Mandarin and Cantonese) and Russian. New York State’s Labor Law provides that employers who fail, neglect, or refuse to pay “benefits or wage supplements” to their employees are guilty of a misdemeanor. The BYOD trend has been driven in part by Millennials in white-collar positions who have come to rely on using thei… At The Klein Law Group, P.C., in New York City, we help employees facing a range of employment law matters, including unpaid expenses. BYOD, or bring your own device, policies are becoming more common in work environments. Labor Code section 2802, referenced by the court, governs this area [concerning reimbursement for all necessary employee expenditures or losses, not just cell phone use) and provides the backdrop for the court’s opinion: – reimbursement obligations employers might not have had to think about before COVID-19. Under newly enacted section 9.5 of the Illinois Wage Payment and Collection Act (“Act”) (effective January 1, 2019), employers are obligated to reimburse employees for all necessary expenses incurred within the scope of their employment. These days, most employers cant keep pace with technology as nimbly as their workforce can. Presumably, items like paper, pens, and printer cartridges would be included. Employers must provide their employees with goods and services essential to the performance of their jobs. The average cell phone bill is now nearly $80, so you should aim for heavy usage rates lower than that. The following memo was just released by the IRS and is addressed to IRS auditors on cell phone usage and reimbursement by employers of employee personal cell phone for business usage and the employer paid cell phone used for some personal usage by the employee. The New York State Department of Labor (NYSDOL) issued final Wage Deduction regulations, effective October 9, 2013. However, it is unclear whether this change provides the much-needed relief that many tax practitioners, employers, and the public desired. Employers consider several factorswhendrafting these policies and determining stipend amounts.Here are just a few: 1. Flushing Office| 40-42 Main Street Suite 4D | Flushing, NY 11355| Flushing Law Office Map, New York Workers’ Compensation, Social Security Disability, Personal Injury and Employment Law, Visit Our Video Center To Learn How We Get, Workers’ Compensation Employer Penalty Defense, Misclassified as an Independent Contractor, New York Bill would assess double wage penalty on employers. for work-related purposes and that the employer would therefore have no reimbursement obligation to these employees. Prior to the amendment, expense reimbursements were not addressed in the IWPCA and its regulations. So would cell-phone and Internet use, although employer and employee would likely have to come to agreement on percentages. As of Jan. 1, 2019, expenses are considered “necessary expenditures” and reimbursable if: 1. Under these policies, many employers are paying anywhere from $30 to $50 per month toward employee cell phone bills. Many employees regularly use their personal cell phones for work-related calls. Your company required or approved the employee to make the expense. Nationally, the U.S. Labor Department has not placed any strict reimbursement requirements on employers when they tell employees to work remotely. If you use your personal cell phone for work-related tasks, including calls, messages and other processes, you are entitled to reimbursement through Illinois’ new employment law in 2019. Our New York expense reimbursement attorneys offer free initial consultations and we collect no fees unless we are successful in obtaining compensation on your behalf. The new law in Illinois states that employers must reimburse all “necessary expenditures”. A "necessary” expense is defined in section 9.5 as all reasonable expenses that: (a) are required by the employer in the discharge of the employees’ duties; and (b) are primarily for the benefit … The amounts will vary by state and usage. If your employer refuses to reimburse you for these necessary expenses, speak to a lawyer about your options. Employers should consider reimbursing costs such as a reasonable percentage of use for things like home electricity, personal cell phones, printer paper, pens/pencils, etc. While these standards don't apply in every state or country, employers should be aware of the standards currently being enforced in California, because history tells us that most U.S. states that favor the employee will be following suit. If the amount paid as “reimbursement” is disproportionately large, the excess amount will be included in the regular rate. The State of California has led the way in defining what employers are required to do when asking officers to bring their personal phones to work. Thats why many forward-thinking companies are now adopting bring-your-own-device (BYOD) policies that allow employees to work on their personal laptops, tablets and smartphones instead of on company-issued equipment. The Court of Appeals’ decision is straightforward: employers must reimburse a reasonable percentage of an employee’s cell phone bill if the employee is required to use his or her cell phone for work purposes. Most probably don’t realize that when they do, part of their cell phone costs may become reimbursable—even if they have plans with unlimited minutes. Never text while driving. 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(1) It should be noted that only the actual or reasonably approximate amount of the expense is excludable from the regular rate. An employee who incurs expenses in connection with his or her employment and at the request of the employer, except those expenses normally borne by the employee as a precondition of employment, which are not paid for by wages, cash advance, or other means from the employer, shall be reimbursed for the payment of the expenses within 30 days of the presentation by the employee of proof of payment. (c) Payments excluding expenses. Governor Cuomo enacted a law that provides benefits - including sick leave, paid family leave, and disability benefits - to New York employees impacted by mandatory or precautionary orders of quarantine or isolation due to COVID-19. There’s now an app for that, Increasing number of wage and hour lawsuits. €¦ Which states are at the forefront of this legislativemovement receipt at the of... 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