Are employers obligated to reimburse for travel expenses?

As a general matter, no. Unfortunately, employers are not required to reimburse employees for expenses incurred in connection with their work, including travel expenses. They are allowed to, and are even arguably encouraged to do so—that’s why travel expenses, for example, are considered legitimate business expenses which a company can deduct when calculating its income for tax purposes; this makes it more attractive to employers to provide the reimbursement. However, it remains optional (with 3 exceptions; see below) and so employers may decline to provide reimbursement.

The exceptions:

1. Discrimination against protected categories (e.g. race, religion, sex, age over 40, disability) is not allowed. If an employer is reimbursing some staff but not others, and seeming to make the distinction on the basis of protected categories, there may be an employment discrimination claim.
2. If a contract, such as an employment contract, calls for reimbursement, that contract must be honored. Note that a strong, clear, unequivocal statement in an employee handbook about reimbursement may be considered to form a contract—though most employee handbooks are rendered ineffectual by the inclusion of various caveats, exceptions, and the retention of an employer right to change the policies in it at will. Still, it’s worth looking at the employee handbook.
3. If the employer promised to reimburse the employee for travel, and it was on the basis of that promise that the employee expended money on travel, that promise may also be enforceable under a theory known as “promissory estoppel”—people cannot always disclaim promises they made which others relied on and which the promisor knew the other would rely on.

However, apart from the above, unfortunately, reimbursement is at the employer’s option.

If you are not reimbursed, then your travel expenses may constitute expenses which you can deduct on your own taxes. This deduction, however, is no longer allowed, starting 2018 through 2025.

Also, note that depending on the nature of the travel, when it was done, and even by which mode (e.g. plane vs. car), it might be the case that the employee needs to be paid for the time spent traveling, even if it was outside of normal working hours. (Travel during work hours is definitely paid.) If an employee has had to travel extensively for work outside his or her normal shift, and that person is a nonexempt employee (e.g. someone who gets overtime), he or she may wish to consult with an employment law attorney.

Case Studies: Are employers obligated to reimburse for travel expenses?

Case Study 1: Non-Reimbursed Travel Expenses

Emily works for a large corporation that requires her to travel frequently for business purposes. Despite incurring substantial travel expenses, her employer does not provide any reimbursement. Emily faces financial strain as she covers all the costs associated with her work-related travel. She realizes that her employer is not obligated to reimburse her for these expenses, highlighting the importance of understanding company policies and negotiating reimbursement agreements.

Case Study 2: Employer Reimbursement for Specific Expenses

Mark works for a small business that has a policy of reimbursing employees for certain travel expenses, such as accommodation and meals. However, the company does not cover transportation costs. Mark finds himself paying for transportation expenses out of pocket, which adds up over time. He realizes the limitations of his employer’s reimbursement policy and learns the importance of budgeting and managing his travel expenses effectively.

Case Study 3: Legal Requirements for Travel Reimbursement

Sarah is employed by a company that operates across multiple states. She is required to travel between different office locations, attending meetings and conferences. Sarah discovers that certain states have laws mandating reimbursement for travel expenses incurred during work-related travel. She consults with an employment law attorney to ensure that her employer is in compliance with these legal requirements and seeks appropriate reimbursement.