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Illinois Requires Expense Reimbursement

11/01/18

Author: ADP Admin/Wednesday, October 31, 2018/Categories: Illinois

Overview: Illinois has enacted legislation (Senate Bill 2999) that requires employers to reimburse employees for certain business expenditures.

Effective Date: January 1, 2019

Details:

Necessary Expenditures:
Under the law, employers must reimburse employees for all necessary expenditures or losses incurred within their scope of employment and directly related to services performed for the employer. The law considers necessary expenditures as expenses or losses required in the discharge of an employee’s duties and are for the primary benefit of the employer.

Receipts:
To be covered by the law, employees must generally submit reimbursement requests with appropriate supporting documentation within 30 calendar days. Employers have the option of providing additional time for submitting such requests in a written policy. Where supporting documentation is non-existent, missing, or lost, the employee must submit a signed statement regarding any such receipts.

Exceptions:
Employers aren’t 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.

Additionally, employees aren’t entitled to reimbursement if the employer has an established written expense reimbursement policy andthe employee failed to comply with the policy.

Employers aren’t liable under the law unless they authorized or required the employee to incur the expenditure or the employer failed to comply with its own written expense reimbursement policy. If the employer’s written policy establishes reasonable specifications or guidelines for expenditures, the employer is not liable under for the portion of the expenditure amount that exceeds the specifications or guidelines as long as the employer does not institute a policy that provides for no or minimal reimbursement.

Action Required: Illinois employers should review policies and procedures to ensure compliance.

As always, please be sure to contact your HR Business Partner if you have any questions.

This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.

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Tags: Compliance Corner11/01/18state update

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