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Business expense reimbursement requirements by State and Municipality

Explore state‑specific business expense reimbursement laws with our Fifty State Guide. Learn where unreimbursed expenses can impact minimum wage and overtime pay.

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by Brightmine Editorial Team

Business expense reimbursement laws vary widely across the U.S.—and HR teams need clear, reliable guidance to avoid costly pay‑practice mistakes. While federal law does not generally require employers to reimburse business expenses unless failing to do so would push an employee’s earnings below minimum wage and any overtime they may be owed., many states and municipalities impose their own reimbursement requirements. Some mandate explicit reimbursement for necessary work‑related expenses, while others interpret wage and deduction rules broadly, creating significant compliance differences across jurisdictions.

Our Fifty State Guide to Business Expense Reimbursement Requirements helps HR and payroll professionals navigate these state‑specific rules with confidence. It summarizes reimbursement obligations, identifies where costs must be employer‑paid, and clarifies how related issues—such as permitted deductions, service‑letter obligations, ADA‑related reimbursable expenses, and remote‑work cost rules—may impact compensation practices.

Empower your organization with a comprehensive, easy‑to‑use resource designed to reduce risk, support compliant pay policies, and standardize your approach to employee expense reimbursement across all 50 states.

Screenshot of the Brightmine Fifty State Chart for business expense reimbursement

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For full access to Business Expense Reimbursement Requirements by State and Municipality, sign up to a HR and Compliance Center subscription today.

Latest updates

Updated to reflect rules regarding reimbursement of employee expenses in Illinois, effective March 31, 2023.

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