BBB: New Year, New Laws

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You may be affected by one of the 235 new laws this year. One of the most significant for small business is expense reimbursement for employees. There has been an amendment to the Wage Payment and Collections act that now requires employers to reimburse employees for "all necessary expenditures that are incurred by the employee" and that are "directly related to services performed for the employer". Necessary expenditures are defined as expenses "required" of an employee in the discharge of his or her duties.

This is aimed at the use of personal computers, phones, and home internet that is required to use for work purpose. The statute is unclear how it will be applied at this time and how "required" will be defined. California's law appears to be the precedent at this time. What is most important is to have a written reimbursement and expense policy in consultation with your attorney as you will not be responsible for more than is written in your policy.

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