Employee Expense Reimbursement Laws in Louisiana

Federal law under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 215, establishes that wage deductions for business expenses are permissible only if they do not reduce an employee's pay below the federal minimum wage of $7.25 per hour. The FLSA applies to employers with at least two employees engaged in interstate commerce. The U.S. Department of Labor (DOL) enforces these protections.

Federal law does not explicitly require employers to reimburse work expenses; rather, it prohibits deductions that violate minimum wage protections. Common reimbursable expenses under federal guidance include travel costs, meals during business travel, tools required for work, and professional development. The key test is whether the deduction would reduce the employee's effective hourly wage below the minimum wage floor. If an employee's gross pay minus expenses would fall below minimum wage for hours worked, the deduction is prohibited. Employees can file complaints with the DOL Wage and Hour Division, which investigates potential violations. Remedies include back wages, liquidated damages equal to unpaid wages, and potentially attorney's fees.

Louisiana Revised Statutes Title 23, § 683, directly addresses wage deductions and expense reimbursement. The statute prohibits any deduction from an employee's wages that would reduce compensation below the state minimum wage of $7.25 per hour (which tracks the federal minimum). Louisiana's law is aligned with, rather than stronger than, federal baseline protections but provides explicit state-level enforcement.

Under Louisiana law, employers are required to reimburse employees for reasonable business expenses incurred in the course of employment. This includes travel costs, required uniforms or equipment, professional licensing fees, and tools necessary to perform job duties. The reimbursement must occur within a reasonable timeframe—Louisiana courts have interpreted this to mean within 30 days of submission, though the statute does not specify an exact deadline.

Louisiana's coverage applies to all employers with employees in the state, regardless of size or interstate commerce status, making it broader in application than the FLSA for in-state violations. The state prohibits any deduction—including disputed reimbursements, cash advances, or uniform costs—that brings take-home pay below minimum wage. Employers cannot require employees to absorb business expenses as a condition of employment.

Unique to Louisiana: the state's wage law is strictly interpreted against employers. If an employer fails to reimburse documented work expenses, the employee may file a wage claim with the Louisiana Department of Labor alleging unlawful wage deduction. Unlike some states, Louisiana does not allow "off-the-clock" work to be compensated later as expense reimbursement rather than wages. Remedies under Louisiana law include full reimbursement of expenses plus interest at the legal rate (currently 5% per annum), and employees may recover attorney's fees if they prevail in a wage claim.

Louisiana law contains important exceptions and limitations to the reimbursement requirement. First, the expense must be legitimate and directly related to job performance; personal expenses or expenses incurred due to employee negligence are not reimbursable. For example, if an employee damages company equipment due to gross negligence, the employer may deduct repair costs, though only if the deduction does not reduce wages below minimum wage.

Second, pre-arranged agreements may modify reimbursement obligations if the agreement does not result in wages below minimum wage. Some employees agree to uniform costs or equipment purchases as part of their hiring agreement, but Louisiana law voids any provision that reduces take-home pay below minimum wage, making such arrangements potentially unenforceable.

Third, independent contractors are not covered by Louisiana wage laws; reimbursement obligations apply only to employees. An employer can avoid wage law requirements by properly classifying workers as independent contractors, though misclassification is common and subject to challenge.

Fourth, employees in certain positions may bear some expenses by industry custom (e.g., attorneys purchasing case-specific research tools), but Louisiana law still requires reimbursement or, alternatively, adequate compensation to offset the cost. The employer cannot argue "industry standard" as a defense if reimbursement fails to occur.

Fifth, if an employee voluntarily incurs an expense without employer authorization, reimbursement is discretionary unless the expense was necessary to perform assigned duties. However, once the employer accepts the benefit of the expense (e.g., uses travel the employee paid for to conduct business), reimbursement becomes mandatory.

Finally, employers may require employees to use specific vendors or pre-approve expenses before reimbursement, provided the approval process is not used as a pretext to avoid reimbursement obligations. Repeated denial of legitimate reimbursement claims may constitute wage theft.

Step 1: Document All Expenses Create a detailed record of every work-related expense you incur. Keep all original receipts, invoices, and documentation showing the date, amount, payee, and business purpose of each expense. Take photographs of receipts if originals are fragile. Maintain a spreadsheet or log with dates, descriptions, and amounts. For recurring expenses (mileage, meals during travel), calculate totals and attach supporting documentation. Store copies separately from originals in case originals are lost.

Step 2: Submit Reimbursement Request to Your Employer Provide your direct supervisor or human resources department with a formal expense reimbursement request. Include all receipts, the business purpose, and dates. Use your employer's standard reimbursement form if one exists. Submit the request promptly after incurring the expense—do not wait months to submit. Keep a copy of everything you submit. If your employer verbally promises reimbursement, follow up with a written email confirming the conversation and the expenses covered. Request written acknowledgment of receipt.

Step 3: File a Wage Claim with the Louisiana Department of Labor If your employer refuses to reimburse documented expenses within 30 days, file a wage claim with the Louisiana Department of Labor, Office of Wage and Hour Administration. You can file online at www.ldi.la.gov or by mail to the Office of Wage and Hour Administration, 1001 North 23rd Street, Baton Rouge, LA 70804. Telephone: (225) 342-3111. Include copies of all expense documentation, proof of submission, dates you submitted requests, and evidence of the employer's refusal (emails, denial letters, or witness statements). Provide your name, address, employer name and address, and dates of employment. File within one year of the wage violation to preserve your claim.

Step 4: Expect Investigation by the Department of Labor After filing, the Louisiana Department of Labor will contact your employer and request their response. The investigation typically takes 30-60 days, though complex cases may take longer. The Department will review expense documentation, payroll records, and employer policies. Your employer may be asked to explain why expenses were not reimbursed. You may be contacted for additional information. The Department will determine whether the employer violated La.R.S. § 683 and whether expenses should have been reimbursed.

Step 5: Consult an Employment Attorney If the Department of Labor investigation is delayed or unsatisfactory, consult a Louisiana employment law attorney. An attorney can file a civil action in district court on your behalf seeking reimbursement, interest (5% per annum), and attorney's fees. Many employment attorneys work on contingency, meaning you pay no upfront fees. Bring all expense documentation, communications with your employer, and the Department of Labor case number (if you filed). An attorney can also assess whether your case qualifies for class action status if multiple employees were denied reimbursement.