One of the quieter tensions in remote work is the question of who actually owns the equipment you use every day — and who should have paid for it in the first place. When you’re sitting at a desk you bought, using a laptop you brought home from the office, it’s easy to assume that’s just how remote work works. But in many states, the law sees it differently. California Labor Code Section 2802, for instance, requires employers to reimburse employees for all necessary business expenses, including internet costs, phone charges, and home office supplies. That’s a much stronger protection than what most people realize they’re entitled to — and it’s far from universal.
Equipment Ownership Expense Reimbursement State Employment Law Remote Work Compliance
Heads up — this post may include links to things I use or like, and I might earn a little something if you shop through them. Doesn’t cost you anything extra, and I only mention stuff I’d actually recommend.
Who Actually Owns the Laptop on Your Desk?
It sounds like a simple question, but the answer gets complicated fast. If your employer handed you a company laptop on your first day and you’ve been using it from home ever since, the ownership is usually clear — it belongs to them. But what about the monitor you added because the company-issued screen was too small? Or the ergonomic chair you bought after your back started hurting?
Under the Fair Labor Standards Act, the federal government doesn’t generally require employers to reimburse employees for work-related expenses. The FLSA only steps in if those expenses would drop your effective pay below the federal minimum wage of $7.25 an hour — which, for most remote workers earning a typical salary, isn’t a realistic trigger. That leaves the question of equipment ownership largely to state law and whatever your employment contract says.
Some companies address this head-on with clear policies: they provide a stipend, reimburse receipts up to a cap, or ship you everything you need. Others leave it vague, and that’s where the tension starts. A class action lawsuit against Syneos Health highlighted exactly this problem — remote employees alleged the company failed to reimburse electrical, Wi-Fi, utility, and other bills directly caused by the requirement to work from home. Dozens of similar cases have followed.
The practical lesson: if equipment is required for your job, it should be treated as a business expense, not a personal one. Ownership follows whoever paid for it, but the more important question is who should have paid.
The State-by-State Patchwork of Reimbursement Rules
This is where things get genuinely uneven. Federal law sets a low floor, and states have responded in wildly different ways. Some mandate reimbursement for nearly everything work-related. Others leave it to employers to decide. And a few fall somewhere in between, with rules that depend on the specific situation.
California is the strongest example. Labor Code Section 2802 requires employers to reimburse all necessary expenditures incurred as a direct consequence of job duties — and that includes the business portion of internet service, cell phone charges, home office supplies, and equipment. It applies even if you’re using a personal phone or home internet plan for work. Illinois and Washington, D.C. have similar mandates. California also requires daily overtime pay (time-and-a-half after 8 hours, double-time after 12), which goes beyond the FLSA’s weekly standard.
New York doesn’t have a broad statute that automatically requires reimbursement for home office expenses. If your employer has an expense reimbursement policy in your contract or employee handbook, they’re legally bound to honor it — but the law itself doesn’t create a blanket obligation. That means your rights depend heavily on what was promised in writing when you were hired. Massachusetts uses a different approach: reimbursement is required if not covering the expense would drop your earnings below the state minimum wage.
At the federal level, the FLSA doesn’t require reimbursement for most remote work expenses. OSHA does require employers to provide a safe workplace, which technically extends to a home office — but OSHA’s guidance clarifies that the employer is only responsible for the work-related area and equipment they actually provide. They’re not expected to inspect your entire home. For most remote workers earning above minimum wage, federal law offers very little direct protection on equipment costs. That’s why state law and your employment contract matter so much.
The broader pattern is clear: where you physically perform your work determines your rights, not where your company is headquartered. As of 2025, minimum wages range from the federal $7.25 an hour (still in effect in 20 states) to over $17.00 in Washington State, California, and parts of New York. If you live in a state with stronger protections, those protections apply — even if your employer is based somewhere with looser rules.
What “Necessary Equipment” Really Means
The legal test sounds simple: if you need it to do your job, it’s necessary, and the employer should cover it. In practice, the line between “necessary” and “nice to have” is where most disputes live.
- A laptop or desktop computer capable of running the software your role requires
- Specialized software licenses or security tools needed for your work
- A dedicated work phone line or cell phone plan if clients or colleagues need to reach you during work hours
- Ergonomic equipment when a standard setup isn’t sufficient — this can become a reasonable accommodation under the ADA if you have a disability
Things get murkier with items that improve comfort or convenience but aren’t strictly required. A high-end ergonomic chair, a standing desk, or a large secondary monitor often fall into this category. Your employer can provide them but usually isn’t legally required to unless you need them as a disability accommodation. The burden of proof sits with the employer to show why something isn’t necessary, but in practice, many remote workers end up covering these costs themselves without ever questioning it.
What stings most is when an employer expects you to have professional-grade equipment but offers no help buying it. If your job requires video calls all day and the company-issued webcam is fuzzy, you’re stuck deciding whether to spend your own money on something that benefits your employer. That tension — between wanting to do good work and feeling like you’re subsidizing your own job — is one of the most common complaints I hear from remote workers.
The Tricky Part: Shared Costs Like Internet and Electricity
Internet service, mobile phone plans, and electricity are different from a laptop because they’re shared between work and personal life. You’d have them anyway — but working from home increases the usage, and sometimes the cost.
In states that mandate reimbursement, the law typically requires employers to cover the portion of these costs attributable to work. There’s no single formula for calculating that split. Some employers ask you to estimate the percentage of time a service is used for work versus personal activity. Others provide a fixed monthly stipend meant to cover the difference. The key requirement is that the stipend must be high enough to reasonably cover the necessary work-related portion — a token $20 a month probably won’t cut it if your internet bill is $80 and you use it for work 60% of the time.
If your employer doesn’t offer any reimbursement and you live in a state without a mandate, you’re essentially absorbing that cost yourself. That’s one of the quieter ways remote work can end up being more expensive than going to an office — and it’s worth factoring into any decision about whether a remote offer is actually a good deal.
When Your Employer Says No — What to Do Next
If you’ve asked for reimbursement or equipment and been turned down, the situation isn’t necessarily over. Here’s a realistic path forward — not a legal playbook, but the steps that have helped other remote workers get traction.
Document Everything
Keep records of what you bought, what it cost, and every email or message where you requested reimbursement. Remote work generates a digital paper trail naturally — use it. Screenshots, receipts, and dated correspondence are your strongest evidence.
Cite the Policy or Law You Believe Applies
Send a written request to HR or your manager referencing the specific company policy or state law you think requires reimbursement. Be direct but professional. Something like: “Per California Labor Code Section 2802, I’m requesting reimbursement for the internet costs I’ve incurred working remotely this quarter. I’ve attached my bill and an estimate of the work-related portion.” Even if the company disagrees, having this in writing establishes that you raised the issue internally.
File a Wage Claim With Your State Labor Department
If internal resolution fails, you can file a claim with the labor department in the state where you work. They can investigate and potentially order your employer to provide reimbursement. This route is lower-cost than a lawsuit and doesn’t require a lawyer to start.
Talk to an Employment Attorney
Many employment lawyers offer free initial consultations. If your employer’s refusal is clear-cut and the amount at stake is significant, legal advice can clarify whether you have a case. Some reports suggest 80% of companies have lost talent due to strict return-to-office mandates, which has made employers more sensitive to remote work disputes generally — but that doesn’t mean every case is winnable.
One thing worth noting: if your employer retaliates after you raise a reimbursement issue — cutting your hours, changing your duties, or giving you a negative review — that may itself be illegal. Document any shifts in how you’re treated after making a request.
The Tax Twist Nobody Warns You About
Here’s something that catches people off guard: under the Tax Cuts and Jobs Act, W-2 employees can no longer deduct unreimbursed employee business expenses on their federal tax return. That suspension runs through at least 2025. So if you buy a $1,500 laptop for work and your employer doesn’t reimburse you, you can’t write it off. The most financially advantageous setup for you is an employer-funded reimbursement through an accountable plan — where you submit receipts and get paid back tax-free. A flat stipend that doesn’t require receipts is typically treated as taxable income. Always check which method your employer uses.
The broader point: equipment reimbursement isn’t just about who owns what. It affects your taxes, your take-home pay, and whether remote work actually saves you money or costs you more. That’s why it’s worth understanding your rights before you spend your own money on something your employer should be covering.
⏚
The rules around equipment ownership and expense reimbursement are more varied than most people realize. Your rights depend on where you live, what your contract says, and whether your employer has a written policy. The single most practical thing you can do is check your state’s reimbursement requirements and review your employment agreement — before you spend money on something the company should be covering. If the law is on your side, asking for reimbursement isn’t pushy. It’s simply exercising a right you already have.