Since the beginning of the COVID-19 pandemic, business operations have never been the same, and workplace cultures continue to evolve. Employees transitioned to working from home and having to adapt to a new way of doing business. In fact, many employees working from home claim they feel more productive, maintaining a robust work-life balance.
However, it might not be as glamorous for the employer. There has been a rise in employee lawsuits demanding reimbursement for expenses acquired while working from home during the pandemic. Remote workers say that their employers have a legal obligation under state law to reimburse them for work-related expenses.
Employees are requesting reimbursement for the following:
- Cellphone
- Internet
- Supplies
- Utility bills
- Home office stipends
What This Means For The Future
Finally, after two-plus years in a pandemic, business owners have requested that their employees return to the office. However, hiring new employees is at an all-time high. As a result, keeping and attracting quality talent is essential for the growth of one’s business. Since working from home is popular among employees, offering it as an option for employment will attract top candidates. 1,700 workers were surveyed, and the results showed that 48 percent of the workers said they would seek a remote position for their next job.
With these lawsuits in many states, it’s vital that you observe what your employees want and how to create a solution that benefits both them and your business.
Currently, no federal laws require you to reimburse your remote workers unless the expenses drop below the employees’ minimum wage. A 2022 survey showed that 62 percent of organizations currently offer employees reimbursement for at-home office or work equipment. For employers that offer reimbursement for business expenses, utilizing expense management software can help streamline the process. Employees are able to itemize and upload receipts directly into the system for the administrator’s approval.
Should you choose to reimburse your remote workers, ensure you are clearly defining your reimbursement policy. Keep a file of every expense and reimbursement to avoid disputes in the future. An expense report system is an additional tool that will allow you to track all business-related purchases including travel, gas, meals, hotel and lodging, and more for a simplified expense reporting process.
Protect Your Business
In today's unprecedented times, it's difficult to stay on top of your daily tasks while wearing multiple hats. How can you be proactive and create future plans at the same time? When you partner with GMS, our experts are there to guide you through challenging times and ensure you stay compliant, all while keeping your employees happy. Our HR experts will work with you to update your employee handbook to ensure there are no discrepancies between what your employees may expect versus what you offer. We take on the administrative burdens, so you don’t have to. Contact us today.