Illinois Employee Expense Reimbursement Laws: What Every Worker Should Know
Many employees spend their own money to do their jobs. Whether it's paying for mileage, purchasing work supplies, traveling to a client meeting, or buying equipment for remote work, these expenses can add up quickly. What many Illinois workers do not realize is that state law may require their employer to reimburse them for many of these costs.
Illinois law provides important protections for employees who incur necessary business expenses. If your employer has refused to reimburse you for legitimate work-related expenses, you may have legal rights.
Illinois Law Requires Employers to Reimburse Necessary Business Expenses
The Illinois Wage Payment and Collection Act requires employers to reimburse employees for all necessary expenditures or losses that are:
Incurred within the scope of employment;
Directly related to services performed for the employer; and
Primarily for the employer's benefit.
The law defines "necessary expenditures" as reasonable expenses required for an employee to perform their job duties that primarily benefit the employer rather than the employee.
Common Expenses That May Be Reimbursable
Depending on the nature of your job, reimbursable expenses may include:
Mileage or use of a personal vehicle for work-related travel
Parking fees and tolls incurred for business purposes
Airfare, hotels, and meals during business travel
Required tools or equipment
Office supplies
Cell phone or internet expenses when required for work
Uniforms or specialized clothing required by the employer
Business-related software or subscriptions
Shipping, postage, or delivery costs
Other reasonable expenses incurred to perform your job
Whether a particular expense must be reimbursed depends on the specific facts of the employment relationship and whether the expense primarily benefits the employer.
The Employer Must Authorize or Require the Expense
Illinois law does not require reimbursement for every expense an employee voluntarily incurs.
Generally, an employer is liable for reimbursement when:
The employer required the employee to incur the expense;
The employer authorized the expense; or
The employer failed to follow its own written expense reimbursement policy.
For example, if an employer instructs an employee to travel to another worksite using their personal vehicle, the travel costs are often reimbursable. Likewise, if an employee is required to purchase equipment necessary to perform assigned job duties, reimbursement may be required.
Written Expense Policies Matter
Illinois employers are permitted to establish written expense reimbursement policies.
These policies may include:
Procedures for requesting reimbursement;
Spending limits;
Required documentation;
Deadlines for submitting expenses; and
Pre-approval requirements.
Employees generally must comply with a valid written reimbursement policy. However, an employer cannot avoid the law by adopting a policy that provides no reimbursement—or only a token, de minimis reimbursement—for expenses that are otherwise required under the statute.
Remote Workers May Also Be Entitled to Reimbursement
As remote and hybrid work has become more common, disputes have arisen over expenses such as:
Internet service
Cell phone usage
Computer equipment
Printers and office supplies
Home office equipment
Illinois law does not automatically require employers to reimburse every expense associated with working from home. Instead, the key question is whether the expense was necessary to perform the employee's job and primarily benefited the employer. The employer's written reimbursement policy and the facts of the employment arrangement often play a significant role in determining whether reimbursement is required.
Employees Must Timely Submit Their Expenses
Illinois law generally requires employees to submit reimbursement requests within 30 calendar days after incurring the expense, along with supporting documentation such as receipts.
If receipts are unavailable, employees may submit a signed statement explaining the expense. Employers may adopt policies allowing employees additional time to submit reimbursement requests.
Because missing a deadline may affect your rights, employees should submit reimbursement requests promptly and retain copies of all documentation.
What Happens If an Employer Refuses to Reimburse Expenses?
When an employer improperly refuses to reimburse necessary business expenses, the employee may have legal remedies.
Depending on the circumstances, an employee may be able to:
Recover unpaid reimbursements;
File a claim with the Illinois Department of Labor; or
Bring a civil action against the employer.
In many cases, employees may also recover statutory damages, attorneys' fees, and court costs if they successfully establish a violation of the Act.
What You Should Do If Your Employer Refuses to Reimburse Expenses
If you believe your employer has unlawfully denied reimbursement:
Save receipts, invoices, and expense reports.
Keep copies of emails and written communications.
Follow your employer's reimbursement policy whenever possible.
Submit reimbursement requests within applicable deadlines.
Speak with an experienced Illinois employment attorney before assuming the employer's decision is final.
Early legal advice can help preserve your rights and maximize your potential recovery.
Contact Luisi Law
Employers cannot shift ordinary business costs onto employees simply by refusing reimbursement. If you have been required to spend your own money to perform your job and your employer has denied reimbursement, you may have claims.
Our firm represents employees throughout Illinois in wage and hour disputes, unpaid wage claims, expense reimbursement cases, retaliation matters, and other employment law litigation. If you believe your employer has violated Illinois law, contact us today for a confidential consultation to discuss your rights.