Employee Rights: Reimbursement for Remote Work Equipment

You bought a webcam for the mandatory video meetings. You upgraded your internet plan because the VPN kept dropping. You replaced that dining chair with something that didn’t leave your back aching by Wednesday. And somewhere in the middle of all that, a question started nudging at you: shouldn’t my employer be paying for some of this? It feels like a simple yes-or-no question, but the answer is surprisingly tangled. There is no federal law that requires employers to reimburse you for remote work equipment — only a patchwork of state laws, and they vary wildly.

Employee Rights Reimbursement Laws Home Office Equipment State-by-State Guide

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The Federal Gap Nobody Warns You About

Let me save you the scrolling: there is no federal law that says your employer must pay for your home office setup. The Fair Labor Standards Act comes closest — it says employers need to reimburse expenses if those costs would drop your earnings below the federal minimum wage of $7.25 per hour. That’s a very low bar. Most remote workers never get close to that threshold, which means the FLSA offers almost no practical protection for the person buying a second monitor out of their own pocket.

What this means in plain terms: if you live in a state without its own reimbursement law, your employer can legally ask you to cover the full cost of working from home, as long as your take-home pay stays above minimum wage. That includes the laptop, the internet, the power bill, the headset — everything. The federal government simply doesn’t weigh in on who pays for the tools of remote work, and that silence creates a lot of confusion.

This gap is the reason so many remote workers end up absorbing costs they assumed would be covered. It’s not that every employer is trying to avoid paying — many offer equipment or stipends voluntarily — but the legal floor is essentially nonexistent at the federal level. And that’s where the state-by-state picture becomes crucial.

Which States Have Your Back (and Which Don’t)

About a dozen states plus the District of Columbia have passed laws that require employers to reimburse workers for necessary job-related expenses. The wording varies, but the core idea is the same: if your employer requires you to work remotely, they cannot push the cost of essential equipment and services onto you.

California has one of the strongest protections. California Labor Code Section 2802 requires employers to cover all necessary expenses you incur while doing your job or following employer instructions. Illinois follows a similar path — the Wage Payment and Collection Act says employers must reimburse reasonable expenses that primarily benefit the employer. In practice, that means your internet bill and work phone usage are likely covered.

North Dakota and South Dakota both have laws that require reimbursement for all necessary expenses paid out of pocket while performing job duties. Iowa gives employers 30 days to reimburse approved expenses. New York’s law applies when an employer agrees to provide reimbursement — then it must arrive within 30 days. Minnesota’s statute kicks in at termination, requiring employers to reimburse expenses incurred before departure. Montana requires reimbursement with a receipt. Pennsylvania gives 60 days if no timeframe was agreed, or 10 days from an agreed date.

New Hampshire and Massachusetts also have reimbursement requirements, and the District of Columbia mandates that employers cover the cost of purchasing and maintaining necessary tools. Seattle has its own local rules as well.

Here’s the complication nobody talks about: even in states with strong laws, the definition of “necessary” gets argued. Is a second monitor necessary? A standing desk? Noise-cancelling headphones? The law tends to protect the baseline — the equipment you genuinely cannot do your job without — but everything beyond that is a negotiation. And in states without any statute, that negotiation starts from zero.

What Actually Counts as Reimbursable

Even in states with clear reimbursement laws, not every home office expense qualifies. The general rule is that the expense must be both necessary and directly related to performing your job. Here’s what tends to be covered, what’s borderline, and what usually falls to you.

Multi-factor authentication is a surprisingly common sticking point. If your employer requires you to use a personal phone for MFA — text messages, authenticator apps, or phone calls — some states may consider that a reimbursable expense. The safest approach for employers is to provide alternative methods like backup codes or hardware tokens, but many don’t. If you’re in a state with a reimbursement law and your employer requires personal device use for security, it’s worth flagging.

One thing that caught my attention in the research: the difference between employees and independent contractors matters here. Employees are covered by state reimbursement requirements. Independent contractors generally are not, unless their contract specifically says otherwise. If you’re a freelancer or 1099 worker, you’re essentially running your own business — and your equipment costs are yours to manage.

The Accountable vs. Nonaccountable Split That Changes Everything

Even when your employer does reimburse you, the way they structure that reimbursement matters for your taxes. The IRS distinguishes between two types of plans, and the difference affects how much you actually keep.

An accountable plan requires three things: the expense must be business-related, you must substantiate it with documentation within 60 days, and you must return any excess reimbursement within 120 days. Reimbursements under an accountable plan are not considered wages, so they aren’t subject to payroll or income tax. You get the full amount, and your employer deducts it as a business expense. That’s the cleanest arrangement for everyone.

A nonaccountable plan is everything else. If your employer pays a flat monthly stipend without requiring receipts, or if you don’t document your expenses properly, the reimbursement is treated as supplemental wages. That means it’s subject to payroll and income tax. You end up keeping less than the full amount, and the tax treatment is less favorable for both sides.

Some employers choose to reimburse even when not legally required. That’s a voluntary policy, and it’s a good sign of a workplace that values fairness. But the tax treatment still depends on whether the plan meets the accountable rules. If you’re receiving a reimbursement, it’s worth checking whether your employer has set it up as an accountable plan — because that directly affects your bottom line.

What to Do When Your Employer Says No

If you’ve asked for reimbursement and been told no, or if you suspect your employer isn’t meeting their legal obligations, the path forward depends heavily on where you live. In states with strong reimbursement laws, you have leverage. In states without them, the conversation is harder — but not impossible.

If you work for a company based in a state with reimbursement laws but you live in a different state, the situation gets complicated. Generally, the law that applies is the one where you perform the work — your location, not your employer’s headquarters. But this isn’t always clear-cut, and it’s worth verifying with a legal professional who understands both states’ rules.

For those in states without reimbursement laws, the conversation becomes about fairness and retention rather than legal obligation. Many employers will still reimburse equipment costs because it’s the right thing to do and because losing a good employee over a $500 laptop is bad business. The key is framing the request around what you need to do your job well, not around what the law requires.