Illinois Wage Payment Collection Act (IWPCA)

The new year brought a new concern for Illinois employers: a mandatory expense reimbursement law. As of January 1, 2019, Illinois employers must reimburse all “necessary expenditures” their employees incur in the scope of employment directly related to services performed by the employer.

The amendment to the Illinois Wage Payment Collection Act (IWPCA) defines “necessary expenditures” as “all reasonable expenditures … required of the employee in the discharge of employment duties and that inure to the primary benefit of the employer.” 820 ILCS 115/9.5.

The amended law is applicable where:

  • the employer “authorized or required” the employee to incur the expense; and
  • the expense request, along with appropriate documentation, was submitted within 30 calendar days – unless a longer period is provided for by the employer.

Continue Reading Illinois mandatory expense reimbursement law now in effect