Employees in New York City may sometimes be asked to use their own cars, cell phones, computers, tools, or other personal equipment to perform work-related duties. This raises an important question: Can a New York employer require an employee to pay these work-related costs without reimbursement?

New York does not have a blanket law requiring every private employer to reimburse every business expense in every situation. However, employers must comply with state and federal wage laws, including rules governing minimum wages, wage deductions, and promised expense reimbursements. Depending on the circumstances, requiring an employee to absorb business expenses may violate those protections.

At LAWYERFORWORKERS, we provide legal assistance to employees throughout New York City who have questions about unpaid wages, unreimbursed expenses, illegal deductions, and other workplace disputes.

Are New York Employers Required to Reimburse Employee Expenses?

Whether an employer must reimburse an employee for business expenses depends on several factors, including the employee's wages, the nature of the expense, the employer's policies or agreements, and the industry involved.

New York law restricts the deductions employers may make from employee wages. The New York State Department of Labor specifically identifies employer business costs as an example of an illegal wage deduction.

New York's Department of Labor also recognizes reimbursement of expenses as a wage supplement. If an employer has agreed to provide expense reimbursement through an employment agreement, established policy, or other arrangement, failure to provide that promised reimbursement may potentially lead to a wage claim.

The distinction is important. An employer's failure to reimburse every expense is not automatically unlawful, but an employer cannot necessarily shift its operating costs to employees without considering applicable wage laws.

Can an Employer Require You to Use Your Personal Vehicle for Work?

Some New York City employees regularly use personal vehicles for business purposes. This may include visiting customers, traveling between job sites, making deliveries, transporting equipment, or performing other assignments during the workday.

Employers may establish jobs that require access to a vehicle. However, employees may incur substantial expenses when using their own cars, including:

• Gas
• Tolls and parking
• Maintenance and repairs
• Increased insurance costs
• Vehicle depreciation
• Mileage and general wear and tear

Federal wage law becomes particularly important for lower-paid employees. Under the Fair Labor Standards Act (FLSA), costs primarily benefiting the employer cannot effectively reduce a covered employee's compensation below the applicable minimum wage or interfere with required overtime compensation. The U.S. Department of Labor identifies tools used for work as an example of an item primarily benefiting the employer.

In New York City, the general minimum wage is $17.00 per hour as of January 1, 2026, although different rules can apply to certain workers and industries.

For example, if an employee earning close to minimum wage must regularly spend significant amounts of personal money on required business travel, those costs could raise wage-law concerns.

What About Personal Computers, Cell Phones, and Tools?

The same general issue can arise when an employer requires workers to supply their own equipment.

Depending on the occupation, employees might be expected to use a personal:

• Laptop or desktop computer
• Cell phone or data plan
• Internet connection
• Power tools
• Hand tools
• Safety equipment
• Software subscription
• Other job-related equipment or supplies

Federal regulations recognize business supplies, materials, tools, cell phone plans, and travel expenses as examples of business expenses that employers may reimburse.

If employees must purchase or maintain equipment primarily for their employer's benefit, the arrangement should be reviewed carefully when those costs significantly reduce the employee's actual compensation.

New York's Rules on Wage Deductions

New York Labor Law Section 193 places significant restrictions on deductions from employees' wages. Generally, deductions must either be authorized by law or fall within permitted categories that benefit the employee and satisfy applicable authorization requirements.

An employer therefore generally cannot simply deduct ordinary business losses or operating expenses from an employee's paycheck.

There can also be a practical difference between an employer directly deducting an expense and requiring an employee to purchase something independently. Nevertheless, wage-and-hour laws can still become relevant when mandatory expenses reduce an employee's effective compensation below required levels.

What If Your Employer Promised Reimbursement?

Employees should review their offer letters, employment agreements, employee handbooks, expense policies, emails, and other written communications.

New York's Department of Labor states that it investigates claims involving unpaid benefits or wage supplements that an employer agreed to provide, and it specifically lists expense reimbursement as a wage supplement.

Therefore, an employer that establishes a reimbursement policy but then fails to follow it may face a different legal issue than an employer that never promised reimbursement in the first place.

Employees should keep copies of reimbursement policies and records showing the expenses they incurred.

How Should Employees Document Work-Related Expenses?

Good documentation can be particularly important in an expense reimbursement or wage dispute.

Employees who are required to use personal property for work should consider maintaining records of their mileage, tolls, parking charges, receipts, equipment purchases, cell phone charges, and other job-related expenses. Emails or messages showing that a supervisor required the employee to use personal property can also be useful.

For vehicle use, employees may want to record the date, starting point, destination, mileage, and business purpose of each trip. Regular commuting between home and an ordinary workplace should be distinguished from travel performed as part of the employee's work duties.

Can an Employer Retaliate Against an Employee Who Raises Wage Concerns?

Employees who believe their employer is improperly shifting business expenses onto them may be hesitant to complain because they fear losing hours, being demoted, or being fired.

New York and federal employment laws contain protections against retaliation in various circumstances involving employees who assert protected wage-and-hour rights. Whether particular conduct qualifies as unlawful retaliation depends on the facts and the law involved.

Workers who experience negative treatment after raising concerns about wages, deductions, or required business expenses should document what happened and consider obtaining legal advice promptly.

Speak With a New York City Employment Attorney About Unreimbursed Work Expenses

Questions involving employee expense reimbursement are highly fact-specific. The answer may depend on how much an employee earns, what expenses are required, whether reimbursement was promised, whether the expenses primarily benefit the employer, and whether those costs affect minimum wage or overtime rights.

If your employer requires you to use your personal vehicle, computer, phone, tools, or other equipment for work and refuses to reimburse you, you may want to determine whether your wage-and-hour rights have been affected.

At LAWYERFORWORKERS, we provide legal assistance to workers throughout New York City dealing with wage disputes, illegal deductions, unreimbursed expenses, and other employment law concerns. Contact our office to discuss your circumstances and learn more about your legal options.