The U.S. Bureau of Labor Statistics reports that as of June 2024, the total employer compensation costs for state and local government workers averaged $61.37 per hour. Wages and salaries averaged $37.80, while benefit costs averaged $23.57.
Reimbursement is one of the controversial topics among businesses. As an employee, it can be frustrating if your employer fails to reimburse you for work-related expenses. Reimbursements may mean that employees have to hold off on settling personal financial obligations like a house mortgage or doctor’s appointment until after they are reimbursed by their employers for work-related expenses.
According to employment law firm Shirazi Law Firm P.C, you can hold your employer accountable and take appropriate actions to address the issue. You can also refer to the Internal Revenue Service guidelines for business expenditures in Publication 535 for 2022.
So, what should you do if your employer fails to reimburse you for work-related expenses?
Know Your Rights
Employers are required by law to reimburse employees for necessary business expenses. These laws have strong legal guidelines to ensure fairness and transparency. If your employer fails to reimburse you, it’s important to understand your rights in this situation. Familiarize yourself with your company’s reimbursement policy outlined in your employment contract.
If your employer isn’t following their reimbursement policy, address the issue directly with them. Schedule a meeting with your HR department or direct supervisor to discuss the outstanding reimbursements and be specific about the details.
If your employer continues to neglect reimbursing you, you may need to seek outside assistance. You can also contact an employment lawyer to help you understand your legal options. Keep in mind that knowing your rights is the first step towards resolving this issue effectively.
Document the Expenses
When you apply for a job, the company usually pays for other things they need, like a medical checkup, as part of the hiring process. For example, some businesses in California may conduct pre-employment drug testing and the companies that require it usually shoulder the cost of the test.
If your employer fails to reimburse you, you should prepare the receipts, invoices, and any other relevant documents that show the costs you’ve incurred. Make sure to note the date, amount, and purpose of each expense. This detailed record will serve as evidence of the money you’re owed.
Organize your expenses with a spreadsheet or app. Classify them by kind, such as travel, supplies, or training, to make presenting the information to your employer easier. Save any emails, messages, or notes about reimbursement with your employer.
These communications can boost your compensation claim.
Communicate with Your Employer
Talk to your employer regarding the reimbursement issue. It’s necessary to address the situation promptly and professionally. Schedule a meeting or send an email to discuss the outstanding reimbursement. Clearly outline the expenses incurred, the policy or agreement that entitles you to reimbursement, and the timeline within which you expect to be reimbursed.
Maintain a polite and respectful tone. Avoid making accusations or becoming confrontational, as this may hinder the resolution process. Instead, express your concerns calmly and provide any additional documentation or information that supports your reimbursement claim.
Make sure to listen to your employer’s perspective as well. They may have valid reasons for the delay in reimbursement, such as administrative issues or oversight. You can work together to find a mutually agreeable solution by understanding their side of the story.
Seek Legal Advice if Necessary
When facing persistent issues with your employer failing to reimburse you, seeking legal advice can provide clarity on your rights and options in resolving the situation.
Legal advisors specializing in employment law can assess your case, explain the relevant laws, and outline potential courses of action. They can help you understand if your employer is breaching any contractual agreements or violating labor laws.
Hiring an employment lawyer means you have someone who can guide you if the situation escalates.
Consider Alternative Solutions
If traditional methods haven’t yielded results, you can look for alternative solutions to resolve the issue of employer reimbursement. If directly addressing the matter with higher management or the human resources department did not produce the result you expected, you can escalate the situation.
You could also propose a repayment plan to your employer to ease the financial burden on both parties. This option shows your willingness to cooperate while still emphasizing the importance of receiving reimbursement.
Another approach could involve seeking assistance from a third-party mediator, such as a labor union representative or a legal advisor specializing in employment disputes. These mediators can help facilitate communication between you and your employer to reach a mutually beneficial agreement.
Conclusion
If your employer fails to reimburse you, know that you have rights and options. Do all the important steps and seek legal advice if necessary. Keep in mind that there are alternative solutions available to you.
Don’t hesitate to take action and ensure you’re fairly compensated for your expenses.