Pennsylvania: Employee Expense Reimbursement Requirements
The short answer
Pennsylvania does not create a universal necessary-business-expense reimbursement duty. When an employer agrees to reimburse expenses, the Wage Payment and Collection Law treats that payment as a wage supplement and generally requires it within 10 days after it is due, or within 60 days after a proper claim if no payment time is specified. Unpaid amounts may support a civil action, attorney's fees, and statutory liquidated damages.
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This is the general rule in Pennsylvania. Ezel applies current Pennsylvania law to your specific facts and answers with citations to the statutes.
| Governing law and coverage | Pa. Wage Payment and Collection Law §§ 2.1, 3; broad private-employer coverage, but reimbursement is enforceable when payable under an agreement rather than as a universal necessary-expense mandate |
|---|---|
| Reimbursable expense standard | Agreement controls which expenses are payable; statutory definition includes expense reimbursement but states no universal necessary/reasonable/work-scope test (§ 2.1) |
| Authorization, direction, and primary benefit | No statutory preapproval, employer-direction, ratification, or primary-benefit test; entitlement depends on the reimbursement agreement |
| Excluded losses and employee fault | No statutory ordinary-risk, negligence, wear, theft, unlawful-direction, precondition, commuting, or personal-cost list; agreement controls covered and excluded items |
| Request deadline and documentation | No statutory employee submission deadline or proof form; if no payment time is specified, a proper claim triggers a 60-day payment period (§ 3(b)) |
| Employer policy, preapproval, and caps | Agreement may define covered expenses, preapproval, proof, and caps, but no private agreement may set aside the Act's protections (§ 7); no universal reimbursement floor stated |
| Payment deadline, method, and interest | Within 10 days after payment is required to the employee or fund; if no time is specified, within 60 days after a proper employee claim; no separate method or interest rule stated (§ 3(b)) |
| Enforcement and remedies | Direct civil action for unpaid wages, reasonable attorney's fees, 3-year limit; if § 10 triggers and no good-faith dispute exists, 25% of wages due or $500, whichever greater |
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Requirements one by one
The reimbursement duty begins with an agreement
The Wage Payment and Collection Law's § 2.1 includes “reimbursement for
expenses” within fringe benefits or wage supplements. It also limits that
category to amounts payable pursuant to an agreement to the employee, a third
party, or an employee-benefit fund.
The Act therefore enforces an agreed reimbursement benefit; it does not create
an independent statewide test covering every necessary or reasonable business
expense. The agreement supplies the categories, authorization conditions,
proof rules, and any caps or exclusions.
The statute supplies two payment clocks
Under § 3(b), an agreed reimbursement is due within 10 days after payment is
required directly to the employee or to the applicable fund. If the agreement
states no required time, the employer has 60 days after the employee files a
proper claim.
The Act does not define a receipt, itemization, certification, or substitute
for missing documents. It also states no reimbursement payment method or
interest rule. The Act's § 7 prevents a private agreement from setting aside the
Act's own protections.
A civil action and liquidated damages may follow
Section 9.1 lets an employee or another party to whom wages are payable bring
an action under the Act. A court must allow reasonable attorney's fees in
addition to the judgment, and the action ordinarily must begin within three
years after the wages became due.
The Act's § 10 adds liquidated damages only when its lateness or repeated-shortage
trigger is met and no good-faith contest, setoff, or counterclaim explains the
nonpayment. The amount is 25% of the wages due or $500, whichever is greater.
What trips people up
The 60-day period is not the default for every claim. It applies when no
required payment time is specified; an agreement with a due date uses the
10-day rule.
The Act protects a promised benefit but does not write the expense policy for
the employer. A mileage rate, receipt deadline, preapproval condition, or cap
must be found in the applicable agreement or another specific law.
Common questions
Must every Pennsylvania employer reimburse necessary mileage?
Not under a universal provision in this Act. Mileage is recoverable through the
Act when the applicable agreement makes it a payable expense reimbursement.
What happens if the agreement has no reimbursement due date?
Section 3(b) requires payment within 60 days after the employee files a proper
claim. The statute does not prescribe the claim's documentation format.
Can the employee recover attorney's fees?
Yes, in a successful action under § 9.1. The court must allow reasonable
attorney's fees in addition to the judgment.
Statutes and sources
- Wage Payment and Collection Law § 2.1. Employer, wage-supplement, and
wage definitions, including agreed expense reimbursement. Official act PDF
(accessed July 14, 2026). - Wage Payment and Collection Law §§ 3, 7. Reimbursement payment timing
and nonwaiver. Official act PDF
(accessed July 14, 2026). - Wage Payment and Collection Law §§ 9.1, 10. Civil action, attorney's
fees, three-year limit, and liquidated damages. Official act PDF
(accessed July 14, 2026).
Source links
Every statute quoted above, linked, with the date we checked it.
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