Do employers have to reimburse employees for business expenses?

Only some states impose a general reimbursement duty by statute. Elsewhere, federal law bars an employer from making an employee bear a required job expense when that cost would cut the employee's pay below the federal minimum wage or overtime due. See the comparison table for each jurisdiction.

Can an offer letter say that the employee pays their own expenses?

It depends on the state. California makes an agreement waiving the reimbursement right void, and Illinois lets a written policy cap reimbursement but not eliminate it. The other surveyed statutes do not address waiver. See each jurisdiction note for how its statute treats written policies and agreements.

U.S. Law Survey

Employee Expense Reimbursement Laws by State

Compare 7 covered U.S. jurisdictions. A side-by-side comparison of the U.S. jurisdictions that require employers to reimburse employees for business expenses — whether the duty reaches all necessary job expenses or only expenses the employer authorized, whether it reaches remote-work costs, and whether a statute voids a waiver. Jurisdictions not yet listed are being added in later batches.

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Employee Expense Reimbursement Laws by State — 7 jurisdictions. Open a row for details, or follow a link to the full practice guide.
Jurisdiction	Must the employer reimburse business expenses?	Summary	Main law	Last reviewed
	Yes — all necessary job expenses	California employers must cover necessary work expenses, including required personal phone use, and an agreement cannot waive that duty.	Cal. Lab. Code § 2802(a) Cal. Lab. Code § 2804	Sep 30, 2026
Remote-work costs covered? Yes, when necessary for the job Can an agreement waive it? No — a waiver is void by statute Upcoming changes — Read the full California guide
	Yes — expenses the employer authorized or requested	Illinois employers must reimburse necessary work expenses they authorize or require, subject to the statute's written policy and submission rules.	820 ILCS 115/9.5(a)	Sep 30, 2026
Remote-work costs covered? Only if the employer authorized or requested them Can an agreement waive it? Limited — a written policy can set limits but not eliminate reimbursement Upcoming changes — Read the full Illinois guide
	Yes — expenses the employer authorized or requested	Iowa employers must pay authorized expenses that employees incur, in advance or within 30 days after an expense claim.	Iowa Code § 91A.3(6)	Sep 30, 2026
Remote-work costs covered? Only if the employer authorized or requested them Can an agreement waive it? Not addressed by statute Upcoming changes — Read the full Iowa guide
	Yes — all necessary job expenses	Montana requires employers to cover necessary expenses directly caused by job duties, except losses from ordinary business risks; the statute does not address waiver.	Mont. Code Ann. § 39-2-701(1)	Sep 30, 2026
Remote-work costs covered? Yes, when necessary for the job Can an agreement waive it? Not addressed by statute Upcoming changes — Read the full Montana guide
	Yes — expenses the employer authorized or requested	Employers must reimburse qualifying expenses incurred at their request within 30 days after the employee presents proof of payment.	N.H. Rev. Stat. Ann. § 275:57, I	Sep 30, 2026
Remote-work costs covered? Only if the employer authorized or requested them Can an agreement waive it? Not addressed by statute Upcoming changes — Read the full New Hampshire guide
	Yes — all necessary job expenses	North Dakota requires employers to cover necessary job expenses, except shared-use tools or equipment and certain business losses.	N.D. Cent. Code § 34-02-01	Sep 30, 2026
Remote-work costs covered? Limited — equipment also used outside work is excluded Can an agreement waive it? Not addressed by statute Upcoming changes — Read the full North Dakota guide
	Yes — all necessary job expenses	South Dakota requires employers to cover necessary expenses directly caused by job duties, subject to statutory exceptions for certain losses.	S.D. Codified Laws § 60-2-1	Sep 30, 2026
Remote-work costs covered? Yes, when necessary for the job Can an agreement waive it? Not addressed by statute Upcoming changes — Read the full South Dakota guide