When employees spend their own money to cover work expenses, such as mileage, supplies, uniforms, or client meals, New York law requires most employers to reimburse them promptly. Suppose your employer has failed to compensate you for legitimate business costs. In that case, an experienced wage-and-hour lawyer can help you recover damages, such as repayment (plus interest), attorneys’ fees, and other costs.

Why Choose Lipsky Lowe LLP for Your Wage and Hour Claim

At Lipsky Lowe LLP, our attorneys have more than 40 years of combined employment-law experience representing New Yorkers in wage and hour disputes. We’ve handled hundreds of reimbursement and underpayment claims across industries, from delivery drivers and hospitality workers to professionals who pay out of pocket for company expenses.

Clients turn to us because we:

  • Know how to calculate reimbursement under state, city, and IRS standards.
  • Pursue every available remedy (e.g., reimbursement, penalties, interest, and attorneys’ fees.
  • Hold employers and corporate officers personally accountable for wage supplement violations.
  • Combine strategic negotiation with skilled litigation to recover what workers are owed.

What Expenses Must New York Employers Reimburse?

Employees commonly use their own funds to perform their duties. In many cases, these costs must be paid back. Examples include:

  • Mileage, fuel, or insurance for business travel (the IRS standard mileage reimbursement rate for 2025 is 67 cents per mile)
  • Meals or lodging during business trips or client meetings
  • Training and seminar fees required by the employer
  • Postage, phone, and internet charges for company tasks
  • Office supplies or equipment purchased to perform job duties
  • Uniforms and laundering costs
  • Replacements for damaged work tools or materials

If you’ve covered any of these costs for your employer, you have the right to ask for prompt repayment, generally within 30 days of submitting your receipts.

How Federal Law Protects Employees From Unreimbursed Expenses

While the Fair Labor Standards Act (FLSA) doesn’t mandate reimbursement, it prohibits employers from shifting business expenses onto employees if doing so reduces their pay below the federal minimum wage ($7.25 per hour as of 2025).

Under the FLSA’s “kickback” rule, a violation may occur when:

  1. The expense primarily benefits the employer
  2. The employee must cover the cost or isn’t reimbursed
  3. The deduction causes wages to fall below the minimum wage

This issue frequently arises in delivery and service industries. For example, if a delivery driver earns $9 per hour but spends $10 per day on gas and maintenance without full reimbursement, their actual pay may fall below minimum wage.

Employers cannot require or permit this type of indirect pay reduction, nor can they waive an employee’s right to minimum wage.

How Does New York Law Expand Reimbursement Protections?

New York Labor Law § 198-c makes it a misdemeanor for employers to fail, neglect, or refuse to pay required “benefits or wage supplements,” which include expense reimbursements. Key points:

  • Employers must pay reimbursements within 30 days of their due date.
  • Corporate officers, including presidents, treasurers, and secretaries. May be personally liable for violations.
  • The rule doesn’t cover bona fide administrative, executive, or professional employees earning more than $1,200 per week (updated threshold for 2025).

Examples of covered benefits include:

  • Reimbursement for business expenses
  • Health or retirement benefits
  • Vacation, holiday, or separation pay

Failing to reimburse expenses promptly can result not only in back pay but also in statutory penalties.

How to Pursue an Employee Expense Reimbursement Claim in NYC

If your employer has ignored or denied your reimbursement request:

  1. Gather your records, including receipts, mileage logs, and expense reports.
  2. Document your requests, note when and to whom you submitted each expense.
  3. Contact an employment attorney who can evaluate whether your situation violates the FLSA or New York Labor Law.
  4. File a complaint or lawsuit seeking damages such as reimbursement, interest, attorneys’ fees, and costs.

At Lipsky Lowe, we guide employees through each step —from informal resolution to litigation —to ensure they receive full and lawful reimbursement.

Talk to a New York City Employee Expense Reimbursement Attorney

If you’ve paid out-of-pocket for your employer’s business expenses and haven’t been reimbursed, don’t wait. Under New York law, prompt repayment isn’t optional — it’s a legal obligation. Contact Lipsky Lowe today to discuss your rights with an experienced NYC wage-and-hour attorney.