Do Companies Have to Reimburse Work-From-Home Expenses in Your State?

The COVID-19 pandemic had a sizable and long-lasting impact on the world. One major change for many people has been the rise of remote and hybrid work. 

It’s certainly gotten a lot easier to find remote or hybrid roles, and it’s worth considering the financial advantages of this work style. For example, if you no longer have a long office commute every day, you might find it easier to pick up extra work hours and use the extra cash to pad your budget or facilitate going through a debt relief program. 

While working from home, you may notice that some of your expenses (such as car maintenance, lunches, and business attire) have decreased. But expenses like utilities, computers, laptops, ergonomic office furniture, apps, software, and your phone or internet bill have likely increased. 

If you’ve transitioned to working from home some or all of the time, should your employer reimburse some of the expenses you incur to get your job done? In most cases, they aren’t required to—but that doesn’t mean you can’t find savings on the equipment and services you need to be a productive worker. 

In fact, working from home could save you money. Let’s explore a few ways to save money on work expenses while you’re being productive from the comfort of your own home. 

Remote Work Reimbursement Laws

If you’re looking at a long list of new (or increased) expenses thanks to your status as a remote worker, you might wonder what your employer is required to cover. There’s a lot of gray area here, but the important question is whether the expense is considered necessary. As great as your expensive new home espresso machine is, don’t expect your employer to pick up the tab for it, as it isn’t strictly necessary for your job. 

But if you require a dedicated phone line, high-speed internet, and a laptop with a fast (and potentially expensive) processor to complete your work tasks, your employer should pay for these costs. If they don’t offer, it’s worth asking. 

Another factor to consider is whether your work is remote because of your choice or your employer’s. If you initiated the remote work arrangement, your company might not be willing to pony up anything toward your costs as a result. But if the company has a remote-first workforce, you’re more likely to enjoy some reimbursement for your expenses. 

Federal rules for remote work reimbursements

There aren’t many federal rules for remote workers and employer reimbursement for costs—some states have rules, though. (More on those below.) One big area of concern for the federal government is your salary, as that impacts whether your company covers remote work costs (and to what extent). 

If you earn the federal minimum wage ($7.25 per hour or $1,128 per week, if you’re salaried) or close to it, your employer may be legally obligated to reimburse you under the federal Fair Labor Standards Act. The Act states that your employer can't require you to cover work expenses (like your internet or phone bill if you need those services for work) if doing so would reduce your earnings to below minimum wage.

If you’re disabled, the Americans with Disabilities Act (ADA) states that your employer might extend remote work as a reasonable accommodation. In this instance, they’re not allowed to require you as the worker to cover the cost of doing your job from home. So your internet/phone access, equipment, and potentially even your electric bill could be reimbursed. 

Even if your employer doesn’t cover all (or any) of your work-from-home expenses, you may be able to write off some of them on your taxes, depending on how you file. 

We’re not tax advisors. Consult a tax professional for advice tailored to your situation and any state tax requirements.

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Most States Do Not Require Reimbursements

Most states don't have laws mandating that employers reimburse employees specifically for work-from-home expenses. Some do, however. And on a federal level, depending on your salary, you could be impacted by the terms of the Fair Labor Standards Act. 

States that may require reimbursements

If you work from home in certain states, you’re in a different position. Your employer may be required to reimburse you for work-from-home expenses, no matter how much you earn.

Here’s a brief overview of remote employee reimbursement rules by state:

• California: Employers must reimburse their workers for “reasonable and necessary expenses” they incur while completing their job duties, including phone and internet service. This applies regardless of whether an employee’s expenses push them below the minimum wage. (California Labor Code Section 2802)

• District of Columbia: Employers are required to reimburse employees for purchase and maintenance of tools necessary for their work. (D.C. Municipal Regulations Title 7, Section 910 and Notice of Final Rulemaking 41 DCR 187)

• Illinois: Reimbursement is required for “all necessary expenditures or losses” that an employee takes on and that are “directly related to services performed for the employer.” Employees must submit reimbursement requests within 30 days. (Illinois Wage Payment and Collection Act, Section 9.5)

• Iowa: Employers are required to reimburse authorized expenses within 30 days. If they won’t pay the reimbursement request, they have to provide a notice explaining why within 30 days. (Iowa Code 2022, Section 91A.3)

• Massachusetts: An employer must reimburse an employer for all expenses that would reduce their pay below the state minimum wage of $15 per hour. It’s recommended that employers reimburse all expenses that are unavoidable and necessary for the employee to do their job. (Massachusetts General Laws Part I, Title XXI, Chapter 149, Section 148)

• Minnesota: If an employee leaves their job, their employer must reimburse them for expenses including uniforms, equipment (bought or rented), travel expenses, or consumable supplies. The employee might also need to return items. (Minnesota Statute 177.24)

• Montana: Employers must pay for any business expenses an employee pays as a direct consequence of their duties and responsibilities as an employee, or at the direction of their employer. This includes internet and cell phone service. (Montana Administrative Rule 24.29.720)

• New Hampshire: Employers reimburse employees for work expenses within 30 days or receiving proof of payment. (New Hampshire Revised Statutes Title 23, Section 275:57)

• New York: Employers who have an agreement with employees (like an employment contract) must compensate employees for expenses if that agreement outlines expense reimbursement. (New York Labor Law Section 198-C)

• North Dakota: Employers are required to reimburse employees for business expenses made at the employer’s direction or to complete necessary duties. (North Dakota Century Code Section 34-02-01)

• Pennsylvania: If an employee incurs an expense not reimbursed by their employer, they may claim it as a deduction on their tax return. (Pennsylvania Wage Payment and Collection Law, Title 43, Section 260.3) 

• South Dakota: An employer is required to compensate employees for all they spend as a consequence of doing their job. (South Dakota Statute Codified Law 60-2-1)

• Washington: Employers reimburse employees for work expenses at their discretion and any costs not reimbursed may be tax-deductible. There’s a special rule for the city of Seattle: employers must pay employees all compensation they are owed, including business expenses, which can include remote work costs. (Washington State Department of Labor & Industries; Seattle Wage Theft Law)

This area of law changes often, so ask your HR team what your company’s policy is. If you don’t think it complies with state and federal law, you can also seek advice from an attorney in your area.

Which Expenses Are Reimbursable? 

Not all work-from-home expenses are reimbursable—remember, your employer is not likely going to foot the bill for that pricey new espresso machine, for example. The same can be said of a more comfortable desk chair (unless it's medically necessary and you can back up that claim with a doctor’s note). 

The equipment and services that are strictly necessary for you to perform your job, however, may be reimbursable. Here’s a few examples: 

• You can buy a standard office chair for under $100 or for much more—your employer is more likely to agree to reimburse for an inexpensive model. 

• If you use Adobe Acrobat for work, your employer might cover the cost of a subscription (as of September 2025, that’s $19.99 per month for Acrobat Pro or $24.99 for Acrobat Studio). 

• As a remote worker, you surely rely on the internet to a high degree. Cost for internet services vary, but you can probably expect to spend at least $60 per month, and perhaps more. CNET says the average American pays $78 per month for high-speed internet. 

How do you get your reimbursement?

If you want your employer to pay you back for the cost of necessary expenses, you’ll have to document what you spent. This will likely mean saving receipts and turning them in so your company can sign off on what you spent and either send you a check or tack your reimbursement onto your pay. 

You might have to wait a while to get paid back—in some companies, reimbursement for expenses moves at a snail’s pace. Ask your HR department if you need help or have questions about how to submit receipts, as you may need to use an online employee portal to do so. 

How to Save Money on Work-From-Home Expenses

Whether or not you receive reimbursement from your employer, you have options to manage your work-from-home expenses and reduce the likelihood that you’ll need help with credit card debt down the line.

Shop around for essential services 

If you’re working from home, it’s a fair bet that you need internet and possibly phone service to do your job effectively. If it’s been a while since you shopped around with service providers to find the best price, make those calls to companies servicing your area. New customers often qualify for a money-saving deal in the first year—giving your household budget a temporary break.

If your usage of home internet or phone service has increased (and it probably has, if you’re working from home), position yourself as a loyal customer looking for a better deal when you call to ask about a price decrease. And if you don’t succeed the first time, call back later and speak to someone different—or even ask for a supervisor. The people most likely to help will probably work for your internet/phone provider’s retention department. 

Use space and furniture you already have 

It’s tempting to go out and buy a whole new suite of office furniture to make your work-from-home space really special, but repurposing existing furniture is a whole lot cheaper. Got a spare dining room table gathering dust in your attic or garage? That could be your new work desk. And instead of renting a co-working space, could you commandeer a guest room during the day?

Buy used

If you lack office furniture, that doesn’t mean you need to buy it new. Check out yard sales or thrift stores in your area, Facebook Marketplace, or Craigslist. Sourcing used electronic equipment like laptops or printers can also save you a bundle. You might consider looking into certified refurbished equipment. For example, Apple refurbishes and resells its own computers, and you can buy refurbished computers via the Outlet section of Best Buy’s website. 

Watch your utility costs

Working from an office often means you can keep your utility bills lower by turning down your heat or air conditioning before you leave for work (or programming a thermostat to do it for you). But if you’re working from home, you need your space to be comfortable all the time. 

Try opening the windows and using blackout curtains to stay cool when you work from home in the summer. Consider space heaters (and yes, put on a sweater—your dad was right) in the winter to control your heating or cooling costs. While you’re at it, sign up for budget billing, which makes your payment the same every month, making it easier to budget. 

Consider warehouse clubs

If you use pens, sticky notes, or other supplies for work, you might want to buy them from a warehouse club store, like Costco, Sam's Club, or BJ's Wholesale. Sometimes these stores also have great deals on equipment like laptops or desk chairs. If you have coworkers who live nearby (not a guarantee if you’re all working remotely), ask if anyone wants to split costs for bulk work supplies.

You pay upfront for a year of membership, but you could recoup that cost on a single purchase if you find a great deal on something you need to buy anyway. The benefits of membership usually include bulk savings on groceries and household items. 

Write off expenses as you can 

If you itemize on your tax return (instead of taking the standard deduction), you might be able to write off some of what you spend on work-from-home expenses. Note that unless you are self-employed (in which case, you don’t have an employer to reimburse your expenses anyway), you’re not eligible for the home office deduction. Speak to a qualified tax professional to find out what might be possible for you. We here at Freedom Debt Relief are not tax professionals and cannot give advice. 

Take Advantage of the Financial Benefits of Working From Home

Whether your employer reimburses work-from-home expenses or not, you have a great opportunity to take your budget by the horns if you no longer have the costs of commuting, work lunches, and maintaining an office-appropriate wardrobe. Just follow the above tips to ensure you’re not spending more than you need to in the course of working from home.