employee-reimbursement-lawIllinois recently passed a law that will soon require businesses to reimburse their employees for any business-related expenses paid for out of pocket. As of now, only seven other states (California, New Hampshire, North Dakota, South Dakota, Montana, Massachusetts and Iowa) and the District of Columbia have similar laws in place. The law is an amendment to the Illinois Wage Payment and Collection Act (IWPCA) and goes into effect January 1, 2019.

Amendment Closes Loophole in Act

Prior to this amendment, there was nothing in the IWPCA that specified expense reimbursement. Because of this, some employers would not reimburse workers since it was not covered under the act, and employees would then sue the employer for violation of contract. The employee would often end up incurring more expenses like attorneys fees, which would not be reimbursed.

Employers Must Reimburse “Necessary Expenditures”

The new law states employers are required to reimburse “necessary expenditures or losses” which the employee incurs during any business activity directly related to the work they do for the employer. The law states necessary expenditures are all reasonable expenses the employee racks up while performing the duties of his or her job. It also states employers are not responsible for losses that are the employee’s own fault, due to normal wear or theft, unless the theft occurred because of employer negligence.

Employees Must Comply With Employer Policies

Even though the new law states employers must reimburse their workers, employees must comply with any written reimbursement policies the employer has in place. The law specifically states employees are not entitled to reimbursement if there are official policies the employee did not follow. The law also says employers are not liable unless they authorized the expenditure the employee seeks reimbursement for, or if they violate their own reimbursement policy.

Contact a Schaumburg, IL Employment Law Attorney

This new law can have a significant impact on company expenditures. If you have employees who use their own vehicle, computer, cell phone or other equipment, an Illinois employment law lawyer can examine your company policies and help protect you against employee expenditure lawsuits. At the Miller Law Firm, P.C., we can determine if your existing employee reimbursement policies are sufficient, and if they are not, assist in drafting new procedures in accordance with the new law. Contact our office at 847-995-1205 to schedule a free consultation.




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employee, Illinois employment lawyerIt can be easy to misclassify a worker, especially when it comes to small businesses. There are a few different classifications that employees can fall under, such as employee or independent contractor, salaried or hourly and overtime exempt or non-exempt. Assigning the wrong status to a worker can bring costly consequences like liability for employment taxes, required payment of back wages, and other penalties. In order to avoid such trouble that will bring nothing but headaches, you should know exactly what constitutes certain designations and how to determine how you should classify a worker.

Independent Contractor vs. Employee

The first determination you should make is whether or not you technically have an independent contractor or an employee. The Internal Revenue Service (IRS) has developed a set of criteria to help employers make this designation. The IRS states that there are three areas where you should look to figure out if your worker is an employee or an independent contractor.


Typically, workers are considered to be employees if the employer has the right to control and direct the work performed by the worker. Your worker may be an employee if:

  • You instruct the worker when and where to work or what supplies to use;
  • You give very detailed instructions;
  • You have an evaluation system to measure details of how work is completed; or
  • You trained your worker on how to do the job.


Businesses usually have the ability to control the financial aspects of an employee’s job. Your worker may be an employee if:

  • You have significantly invested in the equipment that the worker uses;
  • You reimburse expenses for your worker;
  • Your worker is not free to seek out other business opportunities; or
  • You pay your worker a regular wage.


You also need to examine the relationship between you and your worker. Written contracts can help clarify the relationship that the two of you intend to create, but simply stating that a worker is an independent contractor or employee is not enough to prove the worker’s status. Your worker may be an employee if:

  • You provide them with benefits such as insurance, pension plans, vacation pay or sick pay;
  • There is an expectation that the relationship will continue indefinitely; and
  • The services that the worker performs are key aspects to the regular operations of the company.

Still Unsure of How to Classify Your Worker? Contact an Illinois Employment Defense Attorney

Because you could face extensive consequences, you should contact a Schaumburg, IL employment defense lawyer if you are not completely certain of how to classify your workers. If you end up classifying your worker as an independent contractor, but they are deemed by the IRS to be an employee, you could be fined and responsible for paying employment taxes. The Miller Law Firm, P.C. can help you make the correct determination to help prevent any missteps on your part. Contact our office at 847-995-1205 to set up a consultation.




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insurance, Schaumburg employment law attorneysPotential hazards and health risks are everywhere, even in industries that are seemingly safe. As a small business owner, you must protect your employees from dangers and unsafe environments. If an employee is injured, there are multiple insurance options available to them recover. Many new business owners have questions about which coverages are mandated by Illinois employment law.

Health Insurance Coverage

Employers pay hefty costs to offer health insurance, but is it necessary? Deductibles and premiums are higher than workers’ compensation insurance, but health insurance does cover a wide variety of injuries and illnesses, including those that did not occur at work.

Health insurance benefits are not required but can be an added perk to your employees. If you have a small business of fewer than ten employees, discuss the options with your employees. Some people would instead choose their own insurance rather than have the “cookie cutter” plan offered by group benefits, and they may be able to find a better price than is being provided by the group policy.

However, as a business owner, it is a good idea to shop around for group policies, because discounts are available. If you can get a good deal, it is a benefit that could keep a qualified employee satisfied and working for your company longer.

Workers’ Compensation Explained

Workers’ compensation is an insurance that offers both wage replacement and medical benefits to employees that are injured or become ill while at work. Unlike traditional health insurance, employees need not worry about covering the deductible; the insurance company sends the bill to the employer. Employers benefit from having this coverage because if an employee files a claim, they generally agree to relinquish their rights to sue their company for damages.

Illinois requires all employers, and business entities offer workers’ compensation coverage, even if they opted to purchase a healthcare plan. The only positions that Illinois excuse from the workers’ compensation insurance requirements include:

  • Sole proprietors (you do not have any employees);
  • Business partners;
  • Corporate officers;
  • Members of a limited liability company;
  • Family members that live with the business owner.

Retain the Assistance of an Illinois Small Business Attorney

If you have a small business, you should have a Schaumberg small business attorney available to answer your questions at all times. Insurance, wage, and other regulation violations are costly and damaging to the reputation of any business, diminishing the potential for success. Miller Law Firm, P.C. can help you establish your business, offer sound advice with regards to requirements, and defend your interests in employee litigation. Contact our office today at 847-995-1205 for a confidential consultation.






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