Employee Expense Reimbursement Laws in Ohio

Under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 206 et seq., employers are prohibited from making deductions from wages that would reduce an employee's earnings below the federal minimum wage ($7.25 per hour). The Department of Labor enforces this requirement, and the regulation at 29 CFR § 516.5(a) specifically addresses deductions for necessary work-related expenses.

Federal law considers expenses necessary when they are directly required for the employee to perform their job duties. This includes protective equipment, uniforms, specialized tools, and materials integral to job performance. However, federal law permits deductions for expenses that do not reduce wages below minimum wage and are not required by the job itself.

The FLSA applies to employers with at least $500,000 in annual revenue or those engaged in interstate commerce. Enforcement is handled by the U.S. Department of Labor Wage and Hour Division. Employees can file complaints at no cost and may recover unpaid wages plus an equal amount in liquidated damages, plus attorney fees and costs.

Ohio state law provides stronger protections than federal law regarding expense reimbursement. Under Ohio Revised Code § 4111.02 and § 4111.08, employers must reimburse employees for all necessary expenses incurred in performing job duties. This is not limited to situations where reimbursement would reduce wages below minimum wage.

Ohio law applies to all employers in the state with employees, regardless of size or revenue threshold. The state law explicitly prohibits employers from requiring employees to pay for uniforms, protective equipment, tools, or materials necessary to perform their job, even if the employee's wage would remain above minimum wage after the deduction.

Unlike federal law which uses a minimum wage floor test, Ohio focuses on whether an expense is necessary and job-required. Common reimbursable expenses under Ohio law include required uniforms, safety equipment, professional licenses or certifications needed to maintain employment, vehicle mileage for business travel, and specialized tools mandated by the employer.

Ohio Revised Code § 4113.52 provides additional protection by prohibiting retaliation against employees who report expense reimbursement violations to the Ohio Department of Commerce. An employer cannot discharge, demote, or discriminate against an employee for requesting reimbursement or filing a wage claim. Remedies under Ohio law include full reimbursement of unreimbursed expenses, penalties up to 50% of the amount owed, and potential civil damages.

Certain expenses are not reimbursable under Ohio law. Personal clothing that can be worn outside work is not reimbursable even if required at work, such as business casual attire or dress codes not specific to the job. Expenses for general professional development unrelated to current job requirements are typically not reimbursable, though required certifications or licenses are covered.

Employees in commissioned sales positions may have limited reimbursement protections if the commission agreement explicitly addresses which expenses the employee covers. However, even commission employees cannot be required to pay for mandatory safety equipment or uniforms.

Small employers may claim financial hardship, but this is not a valid legal defence; Ohio law does not provide an exception based on employer size or profitability. Employees who fail to follow proper procedures for submitting reimbursement requests or documentation may face delays, but the employer still must eventually reimburse.

Employees who negligently damage equipment or uniforms may be subject to reasonable repair or replacement costs, though employers cannot make deductions that reduce wages below applicable wage floors. Union employees covered by collective bargaining agreements that specify reimbursement terms must follow those negotiated procedures, but the agreement cannot eliminate basic reimbursement rights.

Remote workers and independent contractors have different rights; Ohio's reimbursement law applies to employees classified under common law employment standards. Gig workers or 1099 contractors are not covered.

Step 1: Document all unreimbursed expenses thoroughly. Keep receipts, invoices, and records showing the date, amount, description of the expense, and how it relates to your job duties. Take photographs if applicable (e.g., required uniforms or equipment). Maintain a written log with dates and amounts. Save all email communications discussing the expense or reimbursement request.

Step 2: Submit an internal request for reimbursement in writing. Send an email or letter to your manager or HR department clearly stating the expense, amount owed, date incurred, and business purpose. Keep a copy and document the date sent. Request a specific timeline for reimbursement (typically 30 days is reasonable). This creates an official record and gives the employer a chance to resolve the issue. If the employer refuses or ignores the request, proceed to the next step.

Step 3: File a wage claim with the Ohio Department of Commerce, Division of Wage and Hour. Visit www.com.ohio.gov/en/divisions/labor/wage-and-hour or call (614) 644-2223. File within two years of the expense to preserve your claim. You will need to provide your name, address, phone number, employer name and address, job title, dates of employment, detailed description of unreimbursed expenses, amounts, dates, and copies of documentation (receipts, emails, pay stubs). The filing is free and confidential.

Step 4: The investigation process begins after you file. The Ohio Department of Commerce will contact your employer and request records, pay stubs, and a written response. The agency may conduct interviews with you and employer representatives. This process typically takes 30-60 days but can extend longer for complex cases. You will receive updates on the claim status. During investigation, the employer cannot retaliate against you or you can file an additional retaliation complaint.

Step 5: Consult an employment attorney if the amount is significant (typically $500+), if the employer retaliates, or if the Department of Commerce does not resolve the claim. An employment law attorney can evaluate whether you also have claims for wage theft, retaliation, or breach of contract. Many attorneys work on contingency for wage claims. Contact the Ohio State Bar Association for referrals.