Remote work has become a permanent reality for millions of employees across the United States. As working from home becomes standard rather than exceptional, a question arises: who is responsible for paying for remote work equipment and related expenses?
Does the employer have to provide a laptop, software, or internet access? Can employees ask for reimbursement for furniture, electricity, or office supplies? And how do federal and state laws regulate these obligations?
This article explains, in detail, how responsibility for remote work equipment and expenses is defined under federal law, state regulations, and employer policies, and what both employers and employees should know.
Employer Financial Obligations for Remote Workers in the United States
Federal Law: FLSA and Business Expense Reimbursement
The first thing to know is that, at the federal level, no law requires employers to provide or reimburse remote work equipment like laptops, chairs, or internet service.
However, the Fair Labor Standards Act (FLSA) sets an important condition: an employer cannot require employees to pay for business-related expenses if doing so would reduce their pay below the federal minimum wage ($7.25 per hour) for hourly workers, or below the salary threshold for exempt employees.
This effectively means that if an employee must buy necessary tools or pay work-related costs that cut into their compensation below those thresholds, the employer may have to reimburse those costs to remain compliant with wage laws.
State-Level Requirements: A Patchwork of Laws
Meanwhile, several states and local jurisdictions have created their own requirements regarding remote work costs. These laws generally require employers to reimburse employees for business expenses that are “necessary” to completing their duties, such as work equipment, supplies, phone use, or internet service.
States and jurisdictions with such rules include:
- California: Employers must reimburse employees for all necessary expenditures directly related to job duties, including portions of internet or phone bills, even if the employee would have made those purchases anyway.
- Illinois: Requires reimbursement of “all necessary expenditures or losses incurred by the employee within the employee’s scope of employment and directly related to services performed for the employer.”
- Massachusetts: Employers must reimburse employees for any expenses that are “unavoidable and necessary” for employees to fulfill their duties.
- Montana, North Dakota: Require payment of all costs directly linked to a person’s job.
- New Hampshire, Minnesota: Require reimbursement under specific conditions of equipment used for work.
- The District of Columbia and Seattle (city law) also mandate that employers pay the cost of any tools required for employees to perform their duties.
Important: These laws vary widely in scope and interpretation. Some states require reimbursement only if expenses are “necessary” to perform job duties, while others may require payment for tools used for work regardless. Many legislations don’t specifically mention tools used for remote work, which can make it hard for remote workers to rely on these laws.
Employer Policies, Agreements, and Internal Guidelines
In the absence of a single federal rule, employer policies play a central role in defining who pays for what.
Many companies rely on:
- Written remote work policies
- Reimbursement policies
- Collective bargaining agreements (when applicable)
- Internal charters outlining remote work conditions
These documents typically specify:
- What equipment is provided directly by the employer
- Which expenses are reimbursable
- Reimbursement limits or stipends
- Documentation requirements
What Remote Work Equipment Is Typically Covered?
Computer Equipment and Digital Tools
Remote work is dependent on reliable technology. In most organizations, employers either provide or reimburse the core tech tools required to work effectively.
This usually includes computers (laptops or desktops), monitors, keyboards, mice, and access to required software. Employers are also responsible for ensuring secure access to company systems, such as VPNs, cybersecurity tools, and cloud-based platforms.
Communication and collaboration tools, such as video conferencing software, messaging platforms, and shared workspaces, should also be provided by the employer, as they are essential for teamwork.
If employees are required to use personal devices for work, reimbursement may be required under state law or to comply with wage regulations.
Ergonomic Furniture and Home Office Setup
Unlike some European jurisdictions, U.S. law does not generally require employers to pay for home office furniture such as desks or chairs.
That said, employers remain responsible for providing safe and healthy working conditions, even when work is performed remotely. Although the Occupational Safety and Health Administration (OSHA) does not require employers to inspect or certify home offices, it maintains that employers are still responsible for providing a workplace free from recognized hazards, even in remote work settings, and may be held accountable if work-related injuries result from unsafe conditions that they could reasonably address.
This responsibility becomes particularly relevant in two situations:
First, if a state reimbursement law considers certain ergonomic equipment “necessary” to perform the job, reimbursement may be required.
Second, under the Americans with Disabilities Act (ADA), employers must provide reasonable accommodations when an employee has a documented medical need. This can include ergonomic chairs, sit-stand desks, monitor arms, or other adaptive equipment.
As a result, many employers choose to support ergonomic home office setups through partial reimbursements or fixed stipends for home offices, even when not legally mandated.
Companies are encouraged to provide or recommend ergonomic seating solutions that promote employee health, comfort, and well-being, such as stability ball seats like Bloon, which encourage micro-movements and better posture during prolonged sitting.
Accessories and Complementary Tools
Items such as headsets for video calls, desk lamps, external webcams, or USB hubs are commonly reimbursed when they are required for job performance. While these expenses may seem minor individually, their cost adds up, and their impact on productivity and comfort is significant.
Whether these costs are reimbursed typically depends on employer policy or applicable state law.
Ongoing Remote Work Expenses: What Can Employees Request?
Internet, Phone, and Utility Costs
Internet access is one of the most frequently reimbursed remote work expenses, particularly in states with reimbursement statutes. In jurisdictions like California, employers are required to reimburse a reasonable portion of an employee’s internet or mobile phone bill when those services are used for work purposes, even if the employee would have incurred the cost anyway.
Utility expenses, such as electricity or heating, are less consistently reimbursed. In most cases, these costs are only covered if explicitly included in company policy or required by state law. Some employers instead offer a flat monthly stipend intended to offset these recurring expenses.
Office Supplies
Employees may also incur costs for basic office supplies such as paper, printer ink, notebooks, or other consumables necessary for their work.
When these expenses are directly related to job duties and approved by the employer, they are typically reimbursable under state reimbursement laws or internal policies.
Insurance and Equipment Protection
When employers provide equipment to remote employees, they generally remain responsible for ensuring the equipment. Employees may be required to notify their personal home insurance provider that employer-owned equipment is present in the home, but liability typically remains with the employer.
Employers should also ensure that technical support and maintenance are available to remote employees to prevent work disruptions.
How Reimbursements Typically Work
Written Policies and Agreements
Because federal law is limited and state laws vary, it’s a best practice for employers to have clear, written reimbursement policies that include:
- Which expenses are reimbursable
- Dollar caps or stipends
- Documentation and receipts requirements
- Pre-approval process for large purchases.
As an employer, clear company policies are the easiest way to make sure you remain legally compliant and treat employees equally across teams and locations.
Tax Treatment (U.S. Federal)
Under U.S. tax rules, employer reimbursements can be treated favorably if they are part of an accountable plan, meaning expenses are:
- Job-related
- Substantiated with receipts
- Excess reimbursements are returned to the employer
Under such plans, reimbursements are not taxable income for employees.
What Employees Should Expect
Typically, employees should:
- Ask for reimbursement or a home office stipend if not provided upfront
- Keep all receipts and documentation for equipment and eligible expenses.
- Check state laws that apply to their work location
- Request reasonable accommodations under ADA if ergonomic equipment is medically necessary
Final Note
There is no single federal requirement that all employers must pay for remote work equipment. Instead, obligations depend on a combination of federal wage laws, state reimbursement statutes, reasonable accommodation principles, and employer policies. The most important factor in ensuring a fair remote work setup is communication between the employer and employees.
