Expense Reimbursement: What Are Your Rights as an Employee?

September 12, 2024

Navigating the world of expense reimbursement can be confusing, especially when you’re unsure of your rights as an employee. Whether you’re traveling for work, entertaining clients, or purchasing supplies necessary for your job, it’s crucial to understand what expenses your employer is obligated to cover and how to ensure you’re properly reimbursed.


In this blog, we’ll break down your rights when it comes to expense reimbursement, what types of expenses are typically covered, and how you can protect yourself if you face reimbursement issues.

Understanding Your Right to Reimbursement

Expense reimbursement refers to the process by which an employer compensates you for expenses incurred while performing work-related duties. Generally, this includes costs that are necessary for you to perform your job, such as travel, meals, accommodation, and supplies. However, the specifics can vary based on your company’s policies, employment contract, and state or federal laws.

Common Work-Related Expenses

Here are some of the most common types of expenses that employees may be entitled to have reimbursed:

  • Travel Expenses: This includes airfare, train tickets, mileage for personal vehicle use, car rentals, parking fees, and tolls when you’re traveling for business purposes.
  • Meals and Entertainment: If you’re required to dine with clients or attend work-related events, your employer should cover meal and entertainment costs. Some companies may have limits or require receipts for these expenses.
  • Lodging: Hotel stays or other accommodation costs incurred during business trips should be reimbursed by your employer.
  • Supplies and Equipment: If you purchase supplies or equipment necessary for your job and weren’t provided by your employer, you should be reimbursed for these costs.
  • Training and Education: Some employers cover the cost of job-related training or continuing education. Be sure to check your company’s policy to see if you’re entitled to reimbursement for these expenses.

Your RIghts Under the Law

In the U.S., laws regarding expense reimbursement vary by state. For instance, California has one of the most employee-friendly laws, requiring employers to reimburse employees for all necessary business expenses. Under federal law, if work-related expenses reduce your earnings below the minimum wage, your employer must reimburse you to ensure your pay meets the minimum wage requirement.

It’s important to review your employment contract or employee handbook to understand your specific rights regarding expense reimbursement. If your company’s policies are unclear, don’t hesitate to ask your HR department for clarification.

Protecting Yourself from Reimbursement Issues

To ensure you’re properly reimbursed for work-related expenses, follow these steps:

  1. Keep Detailed Records: Always keep receipts and detailed records of your expenses. This documentation is crucial when filing reimbursement claims.
  2. Submit Expenses Promptly: Most companies have a deadline for submitting expense claims. Be sure to submit your expenses as soon as possible to avoid missing out on reimbursement.
  3. Know Your Company’s Policy: Familiarize yourself with your company’s expense reimbursement policy, including any limits or required documentation. This will help you avoid incurring non-reimbursable expenses.
  4. Communicate Clearly: If there’s any confusion about whether an expense is reimbursable, communicate with your supervisor or HR department before making the purchase.
  5. Seek Legal Advice if Necessary: If your employer refuses to reimburse legitimate work-related expenses, you may need to seek legal advice. In some cases, you may be entitled to recover the unpaid expenses and possibly additional damages.

Take Charge of Your expense Reimbursement

Understanding your rights when it comes to expense reimbursement is essential for protecting your financial well-being. By staying informed, keeping accurate records, and promptly submitting claims, you can ensure that you’re reimbursed fairly for the costs you incur while doing your job. Don’t hesitate to speak up if you encounter issues—your rights as an employee are there to be upheld. If you need help navigating reimbursement disputes or any other workplace issues, contact Employee Law Group for legal support.