Expense Reimbursement & Per Diem Attorneys
Recovering Unreimbursed Work Expenses and Wage Losses for Employees Nationwide
When your employer requires you to pay out of pocket for work-related costs and then fails to reimburse you, those unreimbursed expenses effectively reduce your wages. If they push your take-home pay below the applicable minimum wage, your employer is breaking the law. The same is true for per diem payments that are structured to reduce what you receive in overtime rather than to cover actual expenses.
At Josephson Dunlap, we represent workers who have been shortchanged through unreimbursed expenses, improper per diem arrangements, and related wage violations. We never represent employers. Our firm has recovered hundreds of millions of dollars in back wages for over 100,000 workers across the country.
100,000+
Workers Represented Nationwide
$100M+
In Back Wages Recovered
$0
Consultation Fee
What Clients Say
Some of our clients from accross the country share their experiences with us.
"Excellent law firm. We had some problems with the courts which was not their fault, but they worked through it and I got paid just like they said. They even let me come pick up my check in person instead of waiting on them to mail it. I would give them 10 stars if I could. I would most definitely recommend this law firm to anyone!! A+++++++"
"The entire staff has been great handling the case from start to finish. They have kept me notified of changes and announcements along the way. Would recommend using them if you find yourself needing legal guidance"
"I emailed in with a question and received an immediate response from a supervisor.... On a Saturday! Yvonne was so courteous and helpful and followed up on my issue after the weekend. I truly appreciated the customer service that was provided!"
Expense Reimbursement and the Law
No federal law requires employers to reimburse employees for every work-related expense. However, the Fair Labor Standards Act does require that employers pay at least the applicable minimum wage for every hour worked. When unreimbursed business expenses reduce an employee's net pay below that floor, the employer is legally obligated to make up the difference.
Beyond the minimum wage issue, unreimbursed expenses also affect how overtime is calculated. Under the FLSA, overtime must be based on an employee's regular rate of pay. If an employer is requiring workers to absorb business costs without reimbursement, those costs can effectively lower the real wage rate and, by extension, the overtime base. When an employer structures reimbursements in a way that manipulates the regular rate, workers lose money on every overtime hour they work.
Common Unreimbursed Work Expenses
-
Vehicle Usage and Mileage
Employees who use their personal vehicles for work, including travel between job sites, client visits, or required errands, are entitled to reimbursement. When employers fail to reimburse at the IRS standard mileage rate or actual costs, workers absorb fuel, wear, and depreciation that effectively reduces their wages.
-
Tools, Equipment, and Supplies
Workers in the trades, construction, healthcare, and other industries are sometimes required to purchase their own tools, safety gear, or supplies as a condition of employment. If those purchases push net pay below minimum wage, the employer must cover the difference.
-
Cell Phone and Internet Use
Employees who are required to use their personal phones or home internet connections for work are generally entitled to reimbursement for the portion of those costs attributable to their job. This is especially relevant for remote workers and field employees who receive little or no equipment from their employer.
-
Uniforms and Required Clothing
If your employer requires you to wear a specific uniform, safety gear, or any clothing that cannot be worn outside of work, the cost of purchasing and maintaining that clothing may need to be reimbursed. Deducting uniform costs from wages in a way that drives pay below minimum wage is a violation.
-
Travel, Lodging, and Meals for Work Trips
Employees required to travel overnight for work are generally entitled to reimbursement for reasonable travel, lodging, and meal expenses. When employers set reimbursement amounts below what workers actually spend, the shortfall comes out of the worker's pocket.
-
Training and Licensing Costs
If an employer requires workers to obtain certifications, complete training programs, or maintain professional licenses as a condition of the job, and those costs are not reimbursed, they may constitute a wage violation depending on how they affect the worker's overall compensation.
Talk to an Expense Reimbursement Attorney Today
At Josephson Dunlap, we offer free and confidential consultations for workers who believe they have been shortchanged through unreimbursed expenses, improper per diem arrangements, or related wage violations. We handle cases on a contingency fee basis.
If your employer has required you to absorb business costs, structured your pay to reduce overtime through inflated per diem payments, or kept service charges that should have been distributed to you, contact us to discuss what happened.
Call (888) 992-2990 | Hablamos español.
Per Diem Payments and Wage Claims
A per diem is a fixed daily allowance an employer pays to cover expenses a worker incurs while traveling or working away from home. Per diem payments are common in industries like oilfield and energy, construction, trucking, and healthcare staffing. Used properly, per diem covers meals, lodging, and incidental expenses so workers are not out of pocket when their job requires them to be away from home.
Under the FLSA, a bona fide per diem paid to cover actual business expenses is excluded from the regular rate of pay. That means it does not factor into overtime calculations. This exclusion exists because the payment is a reimbursement, not compensation for work. When employers follow the rules correctly, the arrangement is entirely lawful.
The problem arises when employers use per diem payments as a way to shift compensation away from the base wage and reduce what workers receive in overtime. This is one of the more common wage manipulation schemes in industries that rely heavily on field workers, and it is often difficult to spot without looking closely at how total pay is structured.
When a High Per Diem Is a Sign of Wage Theft
A per diem that is significantly higher than what a worker actually spends, or higher than the IRS standard per diem rates, is a signal worth examining. In many cases, that inflated per diem is not a reimbursement at all. It is actually part of the worker's compensation being relabeled to avoid overtime obligations.
How the Scheme Works
Suppose a worker earns $20 per hour plus a $100 daily per diem. The employer calculates overtime only on the $20 base rate, paying $30 per overtime hour. But if that $100 per diem is not a genuine expense reimbursement, it should be included in the regular rate calculation. The worker's true regular rate is higher, and their overtime pay has been systematically undercalculated on every hour of overtime they have worked.
This arrangement is especially common in the oilfield and energy sector, where workers may spend weeks at a time at a remote site and receive large daily per diems that far exceed their actual daily expenses. The IRS publishes standard per diem rates for most U.S. locations. When per diem payments consistently exceed those rates by a wide margin, the excess is very likely wages in disguise.
IRS Standard Per Diem Rates as a Benchmark
The IRS publishes an annual standard per diem rate covering meals, incidental expenses, and lodging for locations across the country. Payments at or below those rates are generally accepted as bona fide reimbursements. Payments that significantly exceed those rates warrant scrutiny. The table below shows the federal fiscal year 2026 standard rates as a reference point:
| Category | Standard/Lowest Rate | Highest Possible in the United States |
|---|---|---|
| Meals and Incidental Expenses (M&IE) | $68 / day | $92 / day |
| Lodging | $107 / night | Up to $483 / night |
| Combined (lodging + M&IE), standard location | $178 / day | Varies by city |
| Per diem well above combined rate with no travel | May be wages. Should be included in the overtime calculation. | |
Frequently Asked Questions
There is no cost. We offer free and confidential case reviews to help you understand your options. We do not charge any upfront legal fees. We only receive attorney fees if we win a financial recovery for you.
Getting started is straightforward. You can fill out our secure online form or call our office directly. A case manager will review your job details, look for qualifying wage violations, and let you know whether you may have a claim. This initial review is free and takes only a few minutes.
Federal and state laws prohibit employers from punishing or terminating workers for reporting wage violations or participating in a legal claim. This type of unfair treatment is called retaliation, and it is illegal. If your employer takes adverse action against you, our firm can advise you on your rights.
No. Your initial consultation with our firm is private and confidential. We will not contact your employer or notify them that you spoke with us. You can check your eligibility and learn about your rights without your employer's knowledge.
How Our Wage Recovery Process Works
Start your free, no-risk case review in about 10 minutes.
Submit Your Secure Form
Tell us about your missing pay through our confidential online form. We will review your details and follow up within 24 hours. Need answers right away? Call (888) 992-2990.
Get Your Free Consultation
A case manager will spend about 10 minutes reviewing your situation, looking for qualifying violations like unpaid overtime, off-the-clock work, or regular rate errors. Clear advice, no obligation.
We Build Your Case
If you have a valid claim, we get to work right away. Our team handles the paperwork, gathers the evidence, and builds a legal strategy suited to your situation.
We Recover Your Wages
Once we have the facts, our legal team pursues the full amount you are owed. You receive updates throughout the process and pay nothing out of pocket. Attorney fees are collected only if we win.
Find Out If You Could Be Owed Back Wages
Fill out the form below to start your free case review. A member of our team will follow up within 24 hours.
Or Call Us at (888) 992-2990 | Hablamos español.