Pub. 9 2019 Issue 3

10 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com COUNSELOR’SCORNER By Julie Cardosi, Law Office Of Julie A. Cardosi, P.C. U nder the Illinois Wage Payment and Col- lection Act, employers are required to reimburse their employees for expenses incurred within the scope of their employ- ment. This requirement was added by the Illinois General Assembly, effective this year, Janu- ary 1, 2019. Employers who fail to comply with the amended law are subject to possible damages equal to the amount of the reimbursement, plus a two per- cent penalty for each month the expenses are unpaid, and attorney’s fees and costs the employee incurs. Dealerships should consider creating or modifying a written expense reimbursement policy that addresses which expenses may be reimbursed and up to what threshold amount. There are certain requirements under the amended law to qualify for reimbursement. These include: a) the employer must have “authorized or required” the employee to incur the expense; b) the expense request must be submitted by the employee within thirty calendar days, unless a longer period is provided under the employer’s expense reimbursement policy; and c) the employee must provide a signed, written statement in lieu of a receipt when the supporting documentation has been lost or does not exist. There are also certain exceptions to the requirements. For example, an employer is not required to reimburse for losses that are due to a) the employee’s negligence; b) normal wear; or c) theft, unless the theft was a result of the employer’s negligence. The Wage Payment and Collection Act, as amended, permits employers to promulgate written expense reimbursement policies that specify the requirements for and amounts of any reimbursement. Under the law, employees are not entitled to reimbursement if they do not comply with the employer’s written expense reimbursement policies. Also, if the written reimbursement policies specify the amounts and requirements for any reimbursement, the employer is not liable for expenses that exceed those amounts. Notwithstanding the employer’s Required Reimbursement in Illinois of Dealership Employees’ Expenses