The Illinois Department of Labor (IDOL) has published amended regulations, effective April 14, 2023, to Illinois’ Wage Payment and Collection Act (IWPCA).¹ The amended regulations impact Illinois’ robust expense reimbursement requirements under the IWPCA. One of the most important new regulations from the IDOL now requires employers to maintain their expense reimbursement records for three years.

Section 9.5 of the IWPCA provides Illinois employees with expansive expense reimbursement protections. Specifically, employees are entitled to reimbursement of “necessary expenditures and losses incurred by the employee within the employee’s scope of employment and directly related to services performed for the employer.”² The IWPCA defines “necessary expenditures” as all reasonable expenditures required of the employee in the discharge of their employment and expenditures made to the primary benefit of the employer.

The IDOL’s amended regulations now provide the following five-factor test used to determine whether the employee’s expenditure was made to the primary benefit of the employer:

1. Whether the employee has an expectation of reimbursement;
2. Whether the expense is required or necessary to perform the employee’s job duties;
3. Whether the employer is receiving a value that it would otherwise need to pay for;
4. How long the employer is receiving the benefit; and
5. Whether the expense is required of the job.

The IDOL specifies that no single factor is dispositive. Instead, this...

Read Full Story: https://news.google.com/rss/articles/CBMid2h0dHBzOi8vd3d3LmxpdHRsZXIuY29tL3B1...