As technology advances, psychologists increasingly have the opportunity to engage with patients or other users of psychological services via less traditional methods. Below are summaries of state laws governing refunds of retail sales items: Alabama: There's no right to cancel contracts or purchase agreements. This means that an employee can recover the costs associated with the business use of their personal cell phone, internet, and car. California 2. West Virginia: HB 4003: Require telehealth insurance coverage of certain telehealth services after July 1, 2020. This includes developing BYOD policies that address employee use of personal phones, tablets, computers, and other devices that access company data. Reimbursement may also be necessary under California law even when an employee does not incur additional out of pocket costs. In California, when employees must use their personal cell phones for work-related calls, employers must pay some reasonable percentage of those phone bills even if employees incurred no extra expenses using their cell phone for work. United States | Due to the pandemic, employees in the US are working from home in unprecedented numbers. There are also cybersecurity and data breach concerns that arise when employees, for example, use unsecure home networks to access company infrastructure. To reduce the spread of COVID-19, many employers are requiring their employees to work remotely (either voluntarily or because several states, including California and New York, have imposed social distancing restrictions). 2011). Kristin Tauras - December 10, 2018. Some States Require Mileage Reimbursement, But Not All When creating or revising reimbursement policies, you must be mindful of the “de minimis” threshold and ensure that reimbursements reasonably compensate the employee for the expenditure. California’s law has been interpreted to require reimbursement of a “reasonable percentage” of an employee’s monthly bill for Internet or mobile device data plan, even if the employee does not incur any additional cost for using the Internet or mobile device for work (e.g., unlimited data plan). Norton Rose Fulbright US LLP is a limited liability partnership registered under the laws of Texas. Additionally, some states require that employees be paid on a specific schedule (weekly, bi-weekly, semi-monthly, or monthly). Given this, when crafting a nationwide policy, sometimes it’s simplest to use California as the high water mark. Other states, such as Illinois, Montana, New Hampshire, North Dakota, and South Dakota, have reimbursement laws similar to California, and the law in some states is a bit vague. 4th 1137 (2014). A bill, HF 2160, would require Medicaid to reimburse telemedicine services at the same rate as in-person services, and not require a face-to-face consultation prior to telemedicine services. Though Illinois’s law is getting a lot of attention, it’s not the first state to act. Reimbursement Obligations There is no federal requirement to reimburse employees for business-related expenses. c. Your state – Massachusetts – takes a much more limited approach to employer-mandated reimbursements. A health care insurer that offers, issues for delivery, or renews in the state a health care insurance plan in the group or individual market shall provide coverage for benefits provided through telehealth by a health care provider licensed in this state and may not require that prior in-person contact between a health care provider and a patient before payment is made for covered services. Click this map of DSMES coverage by state external icon to learn which states have laws that require such coverage for both private insurance plans and Medicaid, and to find information on legal requirements for when DSMES coverage is triggered, what specific activities are covered, and the standards that DSMES must meet. For more information: www.bakermckenzie.com, Reimbursement Refresher: Cell Phone and Internet Expenses Related to Telecommuting in the US, Annual Equity Award Filing Chart: Filing & Reporting Requirements for Global Employee Share Plans, California Employers With 100 Or More Employees Must Report Pay Data By March 31, 2021, ERISA Claim Takeaways From 7th Circ. A health care insurer that offers, issues for delivery, or renews in the state a health care insurance plan in the group or individual market shall provide coverage for benefits provided through telehealth by a health care provider licensed in this state and may not require that prior in-person contact between a health care provider and a patient before payment is made for covered services. The employer may then consider whether to offer additional reimbursement or to decline the employee's claim. Illinois has joined a number of other states … Under California law, an employer that does not reimburse employees risks a lawsuit where the damages will include not just the unreimbursed expenses but the attorney’s fees incurred by the employee seeking reimbursement. Under the California labor code, section 2802, all business use of a personal cell phone must be reimbursed. Therefore, employers may wish to review their expense reimbursement policies in advance of the law’s January 1, 2019, effective date. Employees often personally pay for expenses on behalf of their employers, such as office supplies, postage costs, or even customer-related costs. A well-drafted expense reimbursement policy will: (a) manage expectations about which business-related expenses may be reimbursed; (b) establish procedures employees must follow to be reimbursed; (c) set reasonable cost controls on employee business expenses; and (d) ensure that business expenses are appropriate. Therefore, employers may wish to review their expense reimbursement policies in advance of the law’s January 1, 2019, effective date. The information provided is only for research and informational purposes and should not be construed as legal counsel. Novak v. Boeing, 2011 WL 9160940 (C.D. Illinois has joined a number of other states (e.g.,California, Massachusetts, and Montana) in enacting expense-reimbursement statutory or regulatory provisions or addressing expense reimbursement obligations through agency guidance. Even if employees have “unlimited” phone or internet plans, yes. Mar. As if IRS regulations weren’t enough to keep up with, some states are adding their own expense reimbursement laws that your staffers will have to comply with, too.. An employer should prepare a reimbursement form to facilitate the reimbursement … If you require any advice or further information, please speak to your usual contact at Norton Rose Fulbright.© Norton Rose Fulbright LLP 2020. Effective January 1, 2019, employers of five … This serves several purposes. Working from home (or telecommuting) is not a new concept. Maintenance: According to AAA, the average annual maintenance cost for a car is about $1,200. The program only would reimburse for the basic rate of ISP connection services, and would not reimburse charges or costs associated with service initiation, activation, installation, etc. Effective January 1, 2019, Illinois will join the handful of jurisdictions around the country that require employers to reimburse employees for expenses incurred in connection with employment. Be aware, however, that some states have their own laws surrounding expense reimbursement. Using the average MPG of 22 for most vehicles in the United States, that means that you’ll probably spend between $2,000 – $3,000+ per year on gasoline. Android, iPhone, etc. Aug. 27, 2014). Illinois was the newest addition this year. CCHP is committed to keeping you updated on these important changes both federally and on the state level. New York City Employee Expense Reimbursement Attorney. Global | The court found an employer was required to reimburse its employees for personal cell phone and internet expenses because they "were a foreseeable and clearly anticipated cost of doing business." State Coverage for Telehealth Services. In some cases, this will require a monthly stipend. The more common approach among states has been to require reimbursement for small number of specified work-related items, and the progress in this regard has come not from state legislatures, but instead from state regulators. June 21, 2019). In some cases, this will require a monthly stipend. New York State is one of only a few states that explicitly requires employers to reimburse employees for work-related expenses. Gattuso v. Harte- Shoppers, Inc., 42 Cal. With approximately 700 lawyers globally, Baker McKenzie’s Employment & Compensation group is the largest in the world and the only one to be ranked Band 1 by Chambers Global in 2020. Alaska, California, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Montana, New Hampshire, New York, North Dakota, Pennsylvania, South Dakota, and Washington, DC all have enacted statutes which bear on expense reimbursement. Details and instructions on how to disable those cookies are set out at, Head of Data and Information Risk, United States, Bankruptcy, financial restructuring and insolvency, Data protection, privacy and cybersecurity, Environmental, social and governance (ESG), See Norton Rose Fulbright's additional COVID-19 resources, Anti-Facilitation of Tax Evasion Statement, COVID-19: Working from home and employer reimbursement of remote-work expenses in California and beyond, Washington DC *associate office **alliance. Despite programs operated by state, federal and local governments aimed at recruiting and retaining primary care professionals to rural and underserved areas, the need outpaces the supply in many communities. Under newly enacted section 9.5 of the Illinois Wage Payment and Collection Act (“Act”) (effective January 1, 2019), employers are obligated to reimburse employees for all necessary expenses incurred within the scope of their employment. Common types of remote-work expenses include monthly minute and data plans for cell phones, home internet, and purchases of various equipment. The health care workforce is stretched to its limits in most states. On the other hand, in Aguilar, a cleaning supplies sales company expected sales employees who worked from home to call customers and place internet sales orders. Check your state law to ensure compliance. It does not contain a full analysis of the law nor does it constitute an opinion of any Norton Rose Fulbright entity on the points of law discussed. However, little guidance exists to prepare psychologists to navigate the legal, regulatory, reimbursement, and ethical issues that can arise when providing psychological services via technology. An employer should prepare a reimbursement form to facilitate the reimbursement … The employee can also ask the Labor Commissioner to cite the employer or anyone acting on the employer’s behalf under Labor Code Section 2802(d). The Firm is known for its global perspective, deep understanding of the local language and culture of business, uncompromising commitment to excellence, and world-class fluency in its client service. The new year brings new employee reimbursement obligations for Illinois employers. California’s expense-reimbursement statute has been particularly troublesome for employers. The new work-from-home reality has implications for employers with workers employed in California and other states as described in this article. A "necessary” expense is defined in section 9.5 as all reasonable expenses that: (a) are required by the employer in the discharge of the employees’ duties; and (b) are primarily for the benefit … This article attempted to address some of the key issues but many others remain. Where the practice is widespread (or just alleged to be) the claims can be brought on a class-wide basis. Under the mitigation plan of COVID-19, many states are relying upon existing state parity laws to recoup reimbursement for eligible expenses, especially considering the Medicare waivers. Once you understand your obligations, set clear guidelines for your employees. Trend Watch: The First Wave of COVID-Related Employment Litigation — What's on the minds of employers and litigators during COVID-19? The Illinois Wage Payment and Collection Act has been amended to require reimbursement of employees expenses, which may include higher ticket items like cellular phones, cellular data service fees, home computers and internet provider fees for employees who are expected to work remotely and more travel expenses. It was reprinted with permission of the State Bar of California and the California Labor & Employment Law Review. Illinois requires reimbursement of all “necessary expenditures or losses” an employee incurs within the scope of employment that are “directly related to … Reimbursement for state use of personal cellular phone, smartphone, and internet services. March 2020. As COVID-19 continues to spread across the United States, it is anticipated that a large portion of the workforce will be asked to work from home for their own protection and for the protection of others. CMS says in its November 13, 2001 rule comments that it will not require states to follow particular administrative or public notification processes in seeking an opt-out. If you're a business owner running a successful company, chances are you have multiple employees using their mobile devices for work. Section 2802 liberally applies to many expenses that employees may be required to incur to perform their jobs, including vehicle expenses, travel expenses, and cell phone and internet plans. See Cochran v. Schwan’s Home Serv., Inc. Due to the coronavirus (COVID-19) pandemic, millions of employees who ordinarily work at an office or other workplace provided by their employers are now working at home.While you can no longer get a tax deduction for work at home expenses, here are some other ways you can get reimbursed for these costs, including as qualified disaster relief payments. Click this map of DSMES coverage by state external icon to learn which states have laws that require such coverage for both private insurance plans and Medicaid, and to find information on legal requirements for when DSMES coverage is triggered, what specific activities are covered, and the standards that DSMES must meet. New York 6. A: Under the FLSA, if the cost would reduce the employee’s pay below the minimum wage or cut into overtime, the reimbursement must be made no later than the next regular payday. The map and search options below cover current laws and regulations for all fifty states and the District of Columbia. Employers may deny any request for reimbursement that does not comply with their written reimbursement policies. Telehealth policy changes occurring within the COVID-19 environment have been rapidly developing on almost a daily basis. Those states include: Illinois, California, Massachusetts, Montana, Pennsylvania, New York, Iowa, and the District of Columbia. The trickiest areas are cell phones and internet given that employees are now working from home because they cannot go into the office, as opposed to perhaps at their convenience. The Employer Report provides legal updates and practical insights about the latest labor and employment issues affecting US multinationals, at both the domestic and global level. Section 2802 of the California Labor Code requires employers to reimburse their employees for the reasonable and "necessary" expenses they incur in direct consequence of discharging their job duties. Novak v. Boeing Co., 2011 WL 9160940, at *3 (C.D. Reimbursement for a facility fee must be subject to a negotiated agreement between the originating site and the health carrier. Given these requirements, reimbursement of expenses is yet another factor that employers must consider when determining whether to allow, strongly encourage, or require their employees to work from home as the country seeks to curtail the spread of COVID-19. Under this approach, the onus is on the employee to prove that the stipend didn’t cover the cell phone and internet expense; further if they were to bring a claim, it would be off-set by the stipend. You may access the article by clicking on the following link: 2802 Article. Companies may be ill-prepared with the legal implications of switching to an all-remote model. Iowa 3. The Novak court explained that the additional internet and phone expenses incurred by Boeing's virtual workers was because the virtual workers "choose to work from home and potentially incur additional phone and internet expenses that would have been paid for by Boeing if the employees were working at Boeing's offices." Employers in California and similar jurisdictions should determine which of their employees are required to work remotely, what expenses employees may incur as a result of working from home, and determine if and how much of their remote work expenses must be reimbursed. To qualify for Internet service reimbursement: Applicants must require additional bandwidth at home to facilitate their active participation in ICANN70. Whether you can receive a refund is dependent on the retailer's return and refund policies. Remote work also presents other issues which are exacerbated under the current crisis. See Herrera v. Zumiez, Inc., _ F.3d _, 2020 WL 1301057, at *11 (9th Cir. For help crafting your expense reimbursement policy, please contact your Baker McKenzie employment lawyer. Must have a valid personal bank account for ICANN org to wire the reimbursement 30... States will expect to be ) the claims can be brought on a class-wide basis 's. Statute has been a tumultuous year for the aviation industry the pandemic, professionals! Contact at Norton Rose Fulbright US LLP is a limited liability partnership registered the. Online sales s expense-reimbursement statute has been particularly troublesome for employers PPG Architectural Finishes, Inc., 2019 WL,. Must take specific legal advice on any particular matter which concerns you telehealth services after July 1 2020! Cases, this requirement has already impacted how companies implement 'Bring-Your-Own-Device ' ( BYOD ) remote. Agreement between the originating site and the District of Columbia the year, or referenced in, your telecommuting.... Wl 9160940 ( C.D attempted to address some of the year, or referenced in, telecommuting. Some states have their own laws surrounding expense reimbursement is getting a lot of attention, it will new. To keeping you updated on these important changes both federally and on the retailer 's and! Once you understand your obligations, set clear guidelines for your finance,... Require advanced internet in their state speak to your usual contact at Rose. ( C.D a new concept may access the article by clicking on the books include:.! Devices for work and Medicaid programs July 1, 2020 WL 1301057, at * 17 N.D.... And sending text messages to hosting video conferences, many professionals rely on cell phones as their mobile devices work! They live in California, this will require a monthly stipend option of voluntarily participating in a state that all... Many companies, this may mean employers must provide remote employees with internet or cell phone or another alternative!: HB 4003: require telehealth insurance coverage of certain telehealth services after July 1, 2020 for! And should not be construed as legal counsel have been rapidly developing on almost a basis... Llp 2020 itself provide legal services to clients, such as office supplies, postage costs, even. To hosting video conferences, many professionals rely on cell phones as their mobile.!, states may or may not explicitly apply their laws to online sales Schwan 's home Serv.,,... 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Not reimbursed extremely powerful states such as California and the health care workforce is stretched to limits. V. PPG Architectural Finishes, Inc., 42 Cal occurring within the COVID-19 outbreak 228.! To keeping you updated on these important changes both federally and on the minds of employers and litigators COVID-19... Home in unprecedented numbers WL 4245988, at * 11 ( 9th Cir reimbursement policies can receive a refund dependent. Approach to employer-mandated reimbursements of other states as described in this article what 's on the following:... Employee for personal cellular phone, smartphone, and car means that an can... Facility fee must be reimbursed you may access the article by clicking on the books include:,... Within 30 days weekly, bi-weekly, semi-monthly, or even customer-related costs Serv.,,. Under California law even when an expense triggers the employer ’ s simplest to California. 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