Expense Policies (Including Business, Travel, and Entertainment): Key Drafting Tips

Summary

Most employers reimburse employees for business expenses incurred while performing their duties and some states even require that employers make such reimbursements (e.g., California (Cal. Lab. Code § 2802(a); Illinois (820 ILCS 115/9.5)). Any expense reimbursement policy should describe the types of expenses that are reimbursable, the procedure for submitting expenses, and any documentation that the employer will require to substantiate the expenses. If the employer issues a company credit card, the policy should also include a discussion of who is eligible for a card and any restrictions on the types of expenses that may be charged. For sample annotated expenses policies, see Expenses Policy, Expenses Policy (with Acknowledgment) (CA), and Expenses Policy (FL). For a state law survey on business expense reimbursement requirements, see Expense Reimbursement Requirements State Law Survey.