Employees throughout Philadelphia and Pennsylvania may sometimes be asked to use their own property to perform their jobs. This might mean driving a personal vehicle to visit customers, using a personal cell phone for work calls, purchasing tools, or providing other equipment necessary to complete assigned duties.

When an employer requires workers to cover these expenses themselves, an important question arises: Can a Pennsylvania employer require employees to use their own vehicles or equipment without reimbursing them?

The answer depends on the circumstances. Pennsylvania does not impose a blanket rule requiring employers to reimburse every employee business expense. However, wage laws, employment agreements, employer policies, minimum wage requirements, and the nature of the expense can affect an employee's rights.

Pennsylvania Law and Employee Business Expenses

Pennsylvania recognizes that employees may incur legitimate business expenses while performing their jobs. The Pennsylvania

Department of Revenue specifically identifies several types of expenses that may qualify as unreimbursed employee business expenses for state income tax purposes, including business mileage, certain cell phone expenses, small tools, office supplies, and qualifying work clothing.

For an expense to qualify as an allowable unreimbursed employee business expense for Pennsylvania tax purposes, it generally must be ordinary, actually paid by the employee, reasonable, necessary to perform the job, and directly related to the employee's work.

The existence of Pennsylvania's tax deduction for certain unreimbursed expenses, however, should not be confused with a universal requirement that employers reimburse every expense. Whether an employer legally owes reimbursement can involve additional wage-and-hour rules, contractual obligations, and workplace policies.

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

Some Pennsylvania employees are required to use their own cars for business purposes. Examples may include employees who travel between work locations, visit clients, make deliveries, attend off-site meetings, or perform other job duties away from their normal workplace.

The Pennsylvania Department of Revenue specifically recognizes certain work-related vehicle and mileage costs as potentially allowable unreimbursed employee expenses. It distinguishes these expenses from an employee's normal commute between home and a primary workplace, which generally does not qualify.

Whether an employer must reimburse mileage or vehicle expenses is a separate issue. Employees should review their employment agreements, written reimbursement policies, offer letters, handbooks, and other documents to determine whether the employer promised mileage or expense reimbursement.

Workers should also keep detailed records of business travel, including dates, destinations, mileage, tolls, parking costs, and the business purpose of each trip.

What About Personal Tools, Phones, Computers, and Other Equipment?

Employees may also be asked to provide equipment necessary for their work. Depending on the occupation, this could include:

• Hand tools or other job-related equipment
• Cell phones or mobile devices
• Computers and internet access
• Office supplies
• Protective clothing or uniforms
• Other supplies necessary to perform assigned duties

Pennsylvania's Department of Revenue recognizes certain required small tools and supplies that an employer does not provide as potentially allowable employee business expenses for state tax purposes. Certain home-office expenses may also qualify when the employee's duties require a suitable work area and the employer does not provide one.

However, the fact that an expense may qualify for tax treatment does not necessarily resolve whether the employer was legally required to pay it.

When Employee Expenses Affect Minimum Wage

One particularly important issue arises when required work expenses effectively reduce an employee's wages.

Pennsylvania's Minimum Wage Act establishes minimum wage and overtime protections for covered employees. The Pennsylvania Department of Labor & Industry also states that, as a rule, deductions cannot reduce an employee's gross pay below the applicable minimum wage.

As a result, workers who are required to bear significant employment-related costs should consider whether those expenses or deductions are affecting the wages they actually receive.

This can be especially important for lower-paid employees who regularly pay for fuel, vehicle expenses, tools, supplies, uniforms, or other items required to perform their jobs.

Improper Payroll Deductions for Equipment Can Raise Additional Issues

There is also a difference between requiring an employee to purchase something and directly deducting its cost from the employee's paycheck.

Pennsylvania's Department of Labor & Industry identifies improper deductions from employee wages, including certain deductions involving equipment costs, as potential violations of the Pennsylvania Wage Payment and Collection Law. The agency also explains that non-tax payroll deductions generally require appropriate authorization and are subject to restrictions.

Therefore, an employer generally should not assume it can simply deduct equipment, property, or other business costs from an employee's paycheck.

Does an Employer's Reimbursement Policy Matter?

Yes. An employer's written policies and promises can be important when determining whether an employee is entitled to reimbursement.

For example, an employer may have a policy promising a particular mileage rate, reimbursement for business travel, payment for required supplies, or compensation for certain equipment purchases. An employment agreement or other workplace document may contain similar provisions.

If an employer promises reimbursement but fails to provide it, the circumstances may raise issues involving unpaid compensation or the employer's obligations under Pennsylvania law.

Employees should save copies of relevant policies, emails, expense reports, receipts, mileage logs, pay stubs, and communications with supervisors.

Pennsylvania Tax Deductions for Unreimbursed Employee Expenses

Even when an employer does not reimburse a particular business expense, Pennsylvania employees may have another avenue for recovering part of the financial impact.

Pennsylvania permits qualifying taxpayers to claim certain unreimbursed employee business expenses on PA Schedule UE. Potential expenses can include qualifying business mileage, certain mobile phone costs, required tools, office supplies, and other necessary employment expenses.

Strict requirements apply, and employees should maintain documentation establishing that the expenses were necessary, job-related, reasonable, and unreimbursed.

A tax deduction is not the same as reimbursement from an employer, and employees with questions about their tax obligations should consult an appropriate tax professional.

What Should Philadelphia Employees Do If They Are Paying Work Expenses Out of Pocket?

Employees who believe they are unfairly paying substantial business expenses should document the situation carefully. Keep receipts, mileage records, pay stubs, expense reports, employer policies, employment agreements, and communications regarding reimbursement.

It can also be helpful to determine whether the expenses are mandatory. An employee who voluntarily purchases an upgraded device for convenience may be in a different position from an employee specifically instructed to use a personal vehicle or purchase necessary equipment as a condition of performing the job.

Because reimbursement disputes can overlap with Pennsylvania wage laws, minimum wage requirements, payroll deductions, and

employment agreements, obtaining legal guidance can help employees understand which protections may apply.

Speak With The Lovitz Law Firm About a Pennsylvania Employment Dispute

Employees should not have to guess whether workplace expense practices comply with Pennsylvania law. If your employer requires you to use your personal vehicle, tools, phone, computer, or other property for work without reimbursement, your specific circumstances should be reviewed carefully.

The Lovitz Law Firm provides legal assistance to employees and workers throughout Philadelphia. The firm can evaluate workplace policies, wage practices, employment agreements, and other relevant facts to help determine whether an employee may have a claim under Pennsylvania employment law.

If you are dealing with unpaid wages, questionable payroll deductions, unreimbursed work expenses, or another employment dispute in Philadelphia, consider contacting The Lovitz Law Firm to discuss your legal options.