Skip to main content

How are Employee Expenses Reimbursed in the United States?

73000640143

To ensure timely reimbursement, expenses must be submitted and approved before the 15th of the month. If the 15th falls on a weekend or public holiday, the submission should be completed by the last business day before the 15th.

Reimbursement Schedule:

  • On-Time Submission: If your expenses are submitted and approved by the 15th (or the previous business day), you will receive your reimbursement on the last pay day of that same month.

  • Late Submission: If expenses are submitted and approved after the 15th, the reimbursement will be processed and paid on the last pay day of the following month.

No single federal law mandates expense reimbursement across all US states: requirements vary significantly by state. Expenses must be submitted using the Remote People platform; proper documentation including invoices and receipts is required for reimbursement and for potential tax-free treatment.

1. Overview & Platform Requirement

Expenses must be submitted through the Remote People platform. Only platform-processed expenses can be reimbursed and treated as tax-free where applicable.

2. How to Submit an Expense

Please refer to How can I submit expenses? for guided steps.

3. State-by-State Breakdown:

State

Is Reimbursement Required?

Key Law

California

Yes (strict)

Labor Code §2802 — all necessary business expenses; broad interpretation

Colorado

Yes

COMPS Order — includes remote work expenses in some cases

Illinois

Yes

IL Wage Payment & Collection Act — requires written policy

Massachusetts

Yes (indirect)

Minimum wage law — applies mainly to low-wage workers

Montana

Yes

State labor laws

Washington

Partial

Case law & employer policies

New York

No (general)

No explicit statute; industry-specific rules may apply

Pennsylvania

No

No explicit law; minimum wage protection applies

Texas

No

No state law; follow federal minimum wage rules

Florida

No

No state law; federal law governs

4. Federal Baseline (All States) Even in states with no law, FLSA requires reimbursement if expenses would drop a non-exempt employee's pay below the federal minimum wage ($7.25/hr).



Did this answer your question?