$l $$V"AG $b) y$8 Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. 41-1904 authorized the Commission to recommend "legislative salaries" that are to be submitted to qualified electors at the next general election after each salary recommendation is made. . The Commission also recommended that per diem paid to legislators be commensurate with that provided for non-elective state employees. The Arizona Constitution originally stated that "[u]ntil otherwise provided by law, members of the Legislature shall receive seven dollars per day . To comply with state law (Arizona Revised Statutes (A.R.S. Premier client service, as outlined in the firm's Client Pledge, is one of the firm's top priorities and a cornerstone of its core values. One member noted that he wanted the $24,000 salary recommendation to stand even if the per diem clause should not have been on the ballot. 0 However, because of the new normal of working from home, employers must vigilantly analyze the types of expenses their employees are incurring for business-related purposes and provide reimbursement accordingly. 41-1904(D). 4, pt. Some states (like California, Illinois, and Montana) have more robust reimbursement laws in that employers are required to reimburse employees for all necessary expenditures or losses or business expenses incurred by the employee in direct consequence or discharge of his or her duties. Essentially, these are laws requiring companies to reimburse employees for necessary expenditures incurred on the job. Justworks strives to reflect the world we want to see by leading with diversity, equity, and inclusion principles, a guiding mission and vision, and follow-through. For example, the "Voter's Guide" printed on the back cover of the Publicity Pamphlet referred to Proposition 302 as the "Commission recommendation relating to salary for State Legislators." ,t\>C50 c?6s@mR Copyright 2013-2023 Justworks, Inc. and its affiliates. If the requested file does not load in a new window, click here. Further, Arizona statutes A: Under the Fair Labor Standards Act ("FLSA"), an employee is entitled to reimbursement of expenses incurred on the employer's behalf if that expense brings the earnings of an employee below the federal minimum wage. 4, pt. It's important to note that these exemptions exist to accommodate unique working arrangements and small business operations. -]@Gf[5z[`;!yh'ef-Xw}.W D The cost of work-related travel is generally a reimbursable expense. {KmT8(PI[I_,WH#R Code of Federal Regulations Title 47. 1. For example, if an employer reimburses an employee for mileage at more than the standard mileage rate, then the excess is taxable income. The director may change the maximum amounts from time to time and may establish a separate maximum amount for geographical areas of the United States if the director finds that the reasonable cost varies significantly in one or more areas. Several times in this decade legislative leaders received annual per diem amounts in excess of $9,000, the amount of the voter-approved salary increase, because of the heavy demands on their time. (This has remained the same for the last few years.) home utilities, like heat and air conditioning. Accordingly, we offer the following guidance: A: Under the Fair Labor Standards Act (FLSA), an employee is entitled to reimbursement of expenses incurred on the employers behalf if that expense brings the earnings of an employee below the federal minimum wage. documentation doesnt exist, is missing or is lost. (2) The geographic area over which the court has authority to decide cases. When the Commission on Salaries for Elective State Officers ("Commission") recommended changing legislative"per diem"rates, it acted beyond its statutory power to recommend changing legislative"salaries." Make sure that you understand and follow the applicable laws in the states where you have employees. App. Which states are at the forefront of this legislative All four members present voted in favor of the salary and per diem recommendations. Claims for reimbursement must be filed not later than 180 days of incurrence of the expense . Arizona law requires that injured employees receive reimbursement for costs charged while receiving medical treatment. The Legislature retains authority to set its own rates of reimbursement for necessary expenses. A second member expressed his view that, if the Commission and the public were in error in adopting the per diem clause, the Legislature could adjust the per diem in any way it wanted. Several states, though, have statutes that detail when an employer has to reimburse an employee for business expenses including those related to working remotely or telecommuting. k6$ LPXDyA B. at 226, 178 P.2d at 438. Our compliance support can help you navigate the unknown and comply with employment regulations. d100'h` 5 *Note: Illinois says the employee can offer a signed Many employers who are not obligated to cover business expenses choose to do so, anyway. They shall also receive mileage one way, by the shortest practicable route, at the rate of twenty cents per mile." art. A state employee while traveling on authorized state business shall be reimbursed for actual lodging expenses incurred not to exceed a predetermined amount pursuant to subsection C. All claims for reimbursement shall be accompanied by lodging expense receipts. Use this guide to help you as you approach recruiting, hiring, and managing remote employees. Lodging expenses; meal and incidental expense reimbursement and long-term subsistence allowance; items covered by reimbursement; amount predetermined by department of administration. You can explore additional available newsletters here. Learn more about our compliance support. The unauthorized recommendation does not alter the per diem reimbursement levels for legislators in A.R.S. [2] D.C. Municipal Regulation Title 7, Section 910.1. Legislative reimbursement continued to be governed by then A.R.S. All rights reserved. On January 6, 1999, you requested a formal legal opinion on the effect of the payment provisions in Proposition 302. Legislative Salaries & Per Diem Reimbursement (Proposition 302), 48th Annual Peace Officers Memorial Service, Elder Abuse Information and Training Guide, Data Breach Notification Form Individuals. Iowa Code 91A.3 (6). But itll be important to watch as courts decide how to interpret these laws and make case-by-case judgment calls. 4, pt. The unique manner in which Proposition 302 was developed requires review of the Commission's intent as well as the intent of the electorate to determine whether severance applies.A related question is whether the invalidity of the Commission's per diem recommendation negates the voters' approval of a legislative salary increase in Proposition 302. The cost of work-related travel, including transportation, lodging, meals, and entertainment that meet the criteria outlined in IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses, are generally reimbursable expenses. These state laws often require reimbursement for necessary job expenses such as: Covering work-from-home expenses has become a major concern since the Covid-19 pandemic has pushed many employees into remote work. As of Jan. 1, 2019, expenses are considered necessary expenditures and reimbursable if: 1. The hiring of a lawyer is an important decision that should not be based solely upon advertisements. 2820 0 obj <>/Filter/FlateDecode/ID[<08703D7AF2D061419FA543B06B9E9782>]/Index[2806 89]/Info 2805 0 R/Length 78/Prev 169187/Root 2807 0 R/Size 2895/Type/XRef/W[1 2 1]>>stream A: Employers should have a written reimbursement policy that requires employees to submit reimbursement requests by a certain deadline after the expense is incurred. Its also a good idea to make sure others involved in T&E (your A/P staffers, expense report approvers, etc.) The Commission members discussed whether the per diem clause was within their authority and the consequences if it were not. Your company required or approved the employee to make the expense. Maximum amounts established by the director shall be subject to approval by the joint legislative budget committee. Learn more about IRS rules and accountable reimbursement plans. {W%iw QT4Ta C5,m= Basic so much more than payroll software, Access robust HR tools, compliance resources, wellness and financial perks, and 24/7 customer support, Plus so much more than health insurance, Get payroll software, HR tools, compliance resources, wellness perks, and 24/7 support with access to quality healthcare coverage. F The lengthy history distinguishing salary from reimbursement (including per diem) in Arizona leads to the conclusion that the Commission has constitutional authority to recommendonlysalary changes. Expense reimbursement lawsuits were already commonplace before the pandemic, and with no end in sight to the pandemic and employees working from home, employers can expect additional lawsuits to be filed. Thats where employee expense reimbursement comes in. Plus, with federal and state eyes watching, having a compliant T&E process will need to be an even higher priority than it was before. It should outline all of the business-related expenses that an employee can get reimbursed for. Companies in California are notorious for trampling on the rights of workers. App. QhK In particular, you asked whether legislators should be paid per diem reimbursement using the rate for non-elected state employees set forth in the Department of Administration's Arizona Accounting Manual or the rate for legislators set forth in A.R.S. A.R.S. These states are: The requirements in these states are not all the same, however. 38-637, and for reimbursement of travel expenses for the legislature under A.R.S. 41-1104. Former ARIZ. CONST. . Violating the terms of this agreement can amount to a breach of contract. hd0 _A;iR!l x6 ,x23CfI6t&4;I{0Ohj0_S30S5&q9 41-1104.A commission or agency of this State has only those powers provided by the Arizona Constitution or statute. The most common are work-related supplies, travel, meals, and entertainment. The Commission had no authority to recommend changes to the legislative per diem reimbursement statute, so its recommendation to change that per diem rate is invalid. See Arizona Laws 1-215 Jurisdiction: (1) The legal authority of a court to hear and decide a case. While federal law does not require employers to pay for work-related expenses incurred by employees while working from home, many state laws do. 180, 2 (currently codified at A.R.S. endstream endobj 709 0 obj <>stream All claims for reimbursement shall be accompanied by lodging expense receipts. Psst interested in learning more about creating an accountable expense plan? This reimbursement law was challenged as being an increase in compensation in violation of the Constitution. Salary: $150,000 - $220,000 per year. art. Before you decide, ask us to send you written information about our qualifications and experience. An ordinary expense is one that is common and accepted in your industry. The director may change the maximum amounts from time to time and may establish a separate maximum amount for geographical areas of the United States if the director finds that the reasonable cost varies significantly in one or more areas. Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. Kendall v. Malcolm, 98 Ariz. 329, 334, 404 P.2d 414, 417 (1965). And because each state can create its own unique requirements, some of your expense policies may need to be revised. However, given the shift to remote work occasioned by the COVID-19 pandemic, employers will want to be mindful of the ways in which their employees are working and business-related expenses are being incurred to ensure employees are being properly reimbursed per applicable federal and state law. B. Since so many people are working remotely . J+cQR! 14 cents per mile for service-related work for charitable organizations. See Earhart v. Frohmiller, 65 Ariz. at 226, 178 P.2d at 438 (the Arizona Supreme Court recognized the Legislature's authority to authorize reimbursement levels despite constitutional prohibitions against changing its members salary or compensation). Expenses incurred by employees while working from home, many state laws do, 417 ( 1965 ) per... Malcolm, 98 Ariz. 329, 334, 404 P.2d 414, 417 ( 1965.... The terms of this legislative All four members present voted in favor of the.. ( this has remained the same for the Legislature under A.R.S Copyright 2013-2023 Justworks, Inc. and affiliates! And reimbursable if: 1, expenses are considered necessary expenditures and reimbursable if: 1 that you understand follow. Reimburse employees for necessary expenses 1, 2019, expenses are considered necessary expenditures and reimbursable if: 1 by. Has remained the same for the Legislature under A.R.S twenty cents per mile. and comply with Regulations! 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