Remote Work Equipment and Expenses: What Your Employer Must Reimburse

When you transitioned to remote work, you probably didn't expect to become your own IT department. Yet suddenly you're buying a desk, monitor, ergonomic chair, internet upgrades, and office supplies—all so you can do your job from home. The question isn't whether these expenses add up (they do), but whether your employer should cover them.

The answer depends on where you live and what your contract says. Some states have stepped in with legal requirements that employers reimburse legitimate work expenses. Others leave it entirely to negotiation. Understanding these rules before you sign your contract—or before you start submitting expense reports—can save you hundreds or even thousands of dollars.

Which States Legally Require Reimbursement

Five states have taken a clear stance: employers must reimburse employees for necessary expenses incurred while working remotely. These aren't suggestions or best practices—they're legal requirements.

California leads the pack with Labor Code Section 2802, which states that employers must reimburse employees for all necessary expenditures incurred in the discharge of duties. This applies to remote workers just as it does to office workers. If your employer requires you to work from home and you need to buy equipment to do so, California law says they're on the hook for it.

Illinois passed similar legislation requiring employers to reimburse employees for ordinary and necessary expenses related to remote work. The law is fairly broad, which gives remote workers decent protection.

Massachusetts requires employers to reimburse employees for expenses incurred as a direct result of the employer's requirements. For remote work, this means necessary equipment and supplies fall under reimbursement obligations.

Minnesota and Montana also have statutory requirements for expense reimbursement. Minnesota's law specifically addresses remote work situations, while Montana's broader reimbursement statute applies to remote arrangements as well.

If you work in any of these states, your employer can't simply ignore reimbursement requests for legitimate work expenses. That said, "legitimate" is the operative word—we'll get into what that actually means.

What Equipment and Expenses Typically Qualify

Not every home office expense is reimbursable, even in states with strong protections. There's a practical distinction between what's necessary for work and what's a personal upgrade.

Equipment that's almost always covered:

• Computer or laptop (if required for the job)
• Monitor and keyboard
• Desk and chair suitable for an 8-hour workday
• Internet service (or the work-related portion of it)
• Software licenses or subscriptions required for your role
• Printer and ink (if necessary for your position)
• Webcam and microphone for video calls
• Phone service or stipend for work calls

Gray areas where reimbursement depends on context:

• High-end standing desk or premium ergonomic chair (your employer might reimburse a standard chair but balk at a $2,000 model)
• Second monitor or ultra-wide display (necessary for some roles, luxury for others)
• Upgraded internet speed (necessary if your job requires video conferencing, less defensible if your base speed is adequate)
• Noise-canceling headphones (more justifiable for customer-facing roles than individual contributors)

Expenses that typically aren't covered:

• Home office décor or paint
• Utilities beyond internet (electricity, water, rent)
• Coffee maker or snacks
• Personal computer accessories unrelated to work
• Home insurance or property modifications

The key question is always: "Is this expense necessary for me to perform my job duties?" If you can reasonably do your work without it, it's probably not reimbursable.

Negotiating a Remote Work Stipend Into Your Contract

If you're signing a new contract or renegotiating an existing one, you have leverage to build in equipment reimbursement before you start working. This is far easier than fighting about it retroactively.

Start by researching what's standard in your industry and location. A software engineer in San Francisco might expect a $2,000 equipment budget, while someone in a lower cost-of-living area might negotiate $1,000-1,500. Look at job postings in your field to see what other companies offer.

When you bring it up, frame it as a business necessity, not a personal request. Say something like: "I want to make sure I have the right setup to be productive. What's the process for equipment reimbursement, and can we include a specific allowance in my contract?" This positions it as a practical matter rather than a negotiation tactic.

You have a few options for how to structure this:

Fixed equipment allowance. A one-time stipend of $1,500-3,000 to purchase what you need. This is straightforward and gives you autonomy to choose your setup.

Annual stipend. $500-1,000 per year for ongoing equipment upgrades and supplies. This covers wear and tear and technology refreshes.

Reimbursement upon receipt. The employer reimburses specific purchases you've already made, up to a certain amount. This requires more documentation but gives the employer control.

Equipment provided by employer. The company buys and ships you a laptop, monitor, and peripherals. You own them for the duration of employment, then return them. Some companies do this instead of stipends.

Get whatever you agree to in writing in your contract. "We'll figure it out later" is how people end up out of pocket. A sentence like "Employer shall provide a $2,000 equipment allowance within 30 days of hire for remote work setup" is clear and enforceable.

What to Do If Your Employer Refuses to Reimburse

You've already paid for necessary equipment, you submitted receipts, and your employer is ghosting your reimbursement request. Or you're in a state with legal protections but your employer claims they don't apply to you. Here's what to do.

First, document everything. Gather receipts, emails, messages, and any documentation of what you purchased and when. Keep records of your reimbursement requests and any responses (or lack thereof).

Review your contract and employee handbook. Look for any language about expense reimbursement, remote work policies, or equipment provisions. You might find language that supports your case.

Send a formal written request. Don't just mention it in Slack. Send a professional email to your manager and HR outlining what you purchased, when, why it was necessary for your job, and the total amount you're requesting. Reference your state's reimbursement law if applicable.

If you're in a protected state, cite the law. If you work in California, Illinois, Massachusetts, Minnesota, or Montana, mention the relevant statute in your request. Most employers will comply once they realize it's a legal requirement, not a favor.

Escalate if necessary. If your direct manager isn't responsive, contact HR or your company's finance department. Sometimes it's just a process issue—they don't know how to handle the request.

Consult an employment attorney if significant money is involved. If you're owed more than a few hundred dollars and your employer continues to refuse, it might be worth a consultation with an employment lawyer. Many offer free initial consultations. In protected states, you may have grounds for a wage claim or lawsuit, and some attorneys work on contingency.

Know when to cut your losses. If the amount is small and your employer is unreasonable, sometimes it's not worth the stress. But if it's a pattern of the company not honoring obligations, that's a sign of bigger problems ahead.

Practical Tips for Remote Work Expense Negotiations

Before you ask for reimbursement, think strategically:

Ask early. Don't wait six months and then ask for reimbursement for equipment you bought on day one. Bring it up during onboarding or in your first week.

Get approval before purchasing. If possible, ask what the company's equipment policy is before you buy anything. Some companies have preferred vendors or specific models they'll reimburse.

Keep receipts. Even for small purchases. You'll need them to prove what you spent.

Bundle requests. If you need multiple items, submit them together with a clear breakdown. It's easier to approve than to process five separate requests.

Be reasonable. Don't ask for a $5,000 Herman Miller chair if a $500 office chair will do the job. Reasonableness is part of the legal standard in most states.

Know your state's rules. If you work in California, Illinois, Massachusetts, Minnesota, or Montana, you have stronger legal ground. Use that knowledge confidently.

Have a contract to review? Try KlausClause.

This article is for informational purposes only and does not constitute legal advice.