Employees throughout Denver and Colorado may sometimes be asked to use their own cars, cell phones, computers, tools, or other equipment to perform job duties. This is particularly common for employees who travel between worksites, make deliveries, communicate with customers from personal devices, or work remotely.

But can a Colorado employer require an employee to cover these business expenses without reimbursement? The answer depends on the circumstances, including Colorado wage laws, the nature of the expense, and whether requiring the employee to pay the cost effectively reduces their compensation below legally required levels.

Understanding your rights can help you determine whether an employer's expense policies may violate Colorado or federal employment law.

Are Colorado Employers Required to Reimburse Employee Business Expenses?

Colorado does not have a broad reimbursement statute requiring employers to repay every business-related expense an employee incurs. However, that does not necessarily mean an employer can shift unlimited operating expenses onto workers.

Colorado wage-and-hour requirements and the federal Fair Labor Standards Act (FLSA) can become relevant when an employee is required to pay expenses primarily for the employer's benefit.

For example, if mandatory expenses associated with using a personal vehicle, purchasing tools, or maintaining required equipment effectively reduce a worker's wages below the applicable minimum wage, the arrangement may raise wage-and-hour concerns.

Whether reimbursement is legally required can therefore depend heavily on the employee's compensation, the particular expense, and why the expense was incurred.

Using a Personal Vehicle for Work in Colorado

Some Denver employees must use their personal vehicles for business activities such as traveling between job locations, visiting customers, transporting materials, or making deliveries.

Employees should distinguish this type of business travel from an ordinary commute between home and a regular workplace. Normal commuting expenses are generally treated differently from expenses associated with driving for work during the workday.

Using a personal vehicle also involves more than the cost of gasoline. Employees may incur expenses related to mileage, maintenance, depreciation, insurance, tolls, and parking.

An employer's reimbursement policy should be reviewed carefully to determine which expenses are covered and whether the employee is ultimately bearing substantial costs necessary to perform the job.

What About Personal Cell Phones and Computers?

Personal technology has become increasingly important in modern workplaces. An employer might require workers to use their personal phones to communicate with customers, access workplace applications, answer calls, or respond to messages. Remote employees may also be expected to use their own computers or internet connections.

The fact that an employee already owns a phone or computer does not automatically resolve whether employment-related costs should be reimbursed.

A wage claim may become particularly important when required expenses are significant enough to affect an employee's legally protected compensation. Written employment agreements, workplace policies, and promises regarding reimbursement can also affect an employee's rights.

Can Employers Require Employees to Buy Their Own Tools or Equipment?

Certain occupations require employees to regularly use tools, uniforms, safety equipment, or other supplies. Employers may have policies addressing which items the company provides and which items employees are expected to obtain themselves.

However, employers should be cautious when requiring employees to purchase items primarily for the company's benefit. Under federal wage law, certain required costs cannot be shifted to employees when doing so would reduce their wages below minimum wage or improperly affect overtime compensation.

The specific circumstances matter. The cost of a particular item, an employee's wages, who primarily benefits from the equipment, and the employer's reimbursement policy can all be relevant.

When Unreimbursed Expenses May Create a Wage-and-Hour Issue

A reimbursement dispute can potentially become a wage-and-hour matter when mandatory work expenses reduce an employee's actual compensation below legally protected amounts.

Suppose an employee earns close to minimum wage and must regularly pay substantial vehicle expenses to complete assigned work. If those expenses are primarily for the employer's benefit, their effect on the employee's wages may need to be examined.

Similar concerns can arise when employees must purchase tools, equipment, uniforms, supplies, or other items necessary for their jobs.

Because wage-and-hour disputes are highly fact-specific, employees should keep records showing what they were required to purchase and how much they spent.

Keep Records of Work-Related Expenses

Employees who believe they are improperly paying business expenses should maintain documentation. Helpful records may include mileage logs, gas and parking receipts, equipment invoices, phone bills, emails discussing reimbursement, employee handbooks, written expense policies, and pay records.

Documentation can help establish that an expense was required for employment rather than merely a personal choice.

Employees should also review their employer's reimbursement procedures. If the company has a formal process for submitting expenses, following that process and retaining copies of submissions can create a useful record if a dispute develops.

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

Colorado and federal employment laws provide protections against certain forms of retaliation related to protected wage-and-hour activity.

Employees who believe their employer is violating wage laws should therefore consider documenting communications concerning the issue. Changes such as termination, demotion, reduced hours, undesirable assignments, or other adverse actions occurring after a worker raises protected concerns may warrant further review.

Whether conduct legally constitutes retaliation depends on the particular facts.

Speak With a Denver Employment Law Attorney About Unreimbursed Work Expenses

Questions involving personal vehicles, equipment, and other employment expenses can become complicated because reimbursement rights depend on the type of expense, the employee's compensation, workplace policies, and applicable Colorado and federal wage laws.

Employees should not assume that every unreimbursed expense is automatically lawful simply because their employer has a policy requiring them to pay it.

At Law Office of Ralph G. Torres, we provide legal assistance to employees in Denver and the surrounding Colorado communities. If you believe you have been required to pay significant work-related vehicle, equipment, tool, or technology expenses without appropriate reimbursement, speaking with a Denver employment law attorney can help you better understand your legal options.