['Compensation', 'Wage and Hour']
['Compensation', 'Payroll', 'Wage and Hour', 'Minimum Wage', 'Fair Labor Standards Act (FLSA)']
06/30/2025
...
SEARCH
Illinois law requires private employers to reimburse employees for all necessary expenses or losses, including phone and internet reimbursement when these tools are used for remote work purposes. Employers can specify what they’ll pay for each type of expense, and employees must submit requests for reimbursement within 30 days of incurring the expense.
Exceptions to the reimbursement requirement include a) when an employer has a written policy that states expenses will not be reimbursed, and b) when an employee fails to comply with the expense reimbursement policy.
An expense is deemed “necessary” when its primary benefit is to the employer. The Illinois Administrative Code applies a five-factor test to determine:
- Whether the employee has any expectation of reimbursement;
- Whether the expense is required or necessary to perform the employee’s job duties;
- Whether the employer is receiving a value that it would otherwise need to pay for;
- How long the employer is receiving the benefit; and
- Whether the expense is required of the job.
Employers must maintain all records relating to expense reimbursement for a period of three years.
Illinois state employees who travel on official state business are entitled to reimbursement for travel expenses, subsistence expenses, and mileage allowances at the maximum rates established under federal law. Each agency has a travel coordinator(s) to assist employees with business-related travel.
Related information
Citations
- 820 ILCS 115/9.5 — Reimbursement of employee expenses
- 56 ILAC 300.540 — Reimbursement of Expenses
- Travel Reimbursement Schedule — Illinois Dept. of Central Management Services (state employees)
- 80 Ill. Admin. Code 2800 — Travel (state employees)
- 29 CFR 531.35 — “Free and clear” payment; “kickbacks”
- 29 CFR 778.217 — Reimbursement for expenses
['Compensation', 'Wage and Hour']
['Compensation', 'Payroll', 'Wage and Hour', 'Minimum Wage', 'Fair Labor Standards Act (FLSA)']
UPGRADE TO CONTINUE READING
Load More
J. J. Keller is the trusted source for DOT / Transportation, OSHA / Workplace Safety, Human Resources, Construction Safety and Hazmat / Hazardous Materials regulation compliance products and services. J. J. Keller helps you increase safety awareness, reduce risk, follow best practices, improve safety training, and stay current with changing regulations.
Copyright 2025 J. J. Keller & Associate, Inc. For re-use options please contact copyright@jjkeller.com or call 800-558-5011.