Iowa: Employee Expense Reimbursement Requirements

Requirements one by one

Employer authorization, not a universal necessity test, controls

Iowa Code § 91A.2(3)-(4) covers employees working in Iowa for wages, and
§ 91A.3 covers expenses that the employer authorized and the employee incurred.
Section 91A.3(6) does not add a separate requirement that the expense be necessary,
reasonable, primarily for the employer's benefit, or within a listed expense
category.

That means Iowa does not supply a universal mileage rate, phone percentage, or
home-office amount. The statutory question is whether the employer authorized
the expense. The section does not say whether authorization must come before
the purchase or may occur later.

Reimbursement is due in advance or within 30 days

Under § 91A.3(6), the employer may reimburse the employee before the expenditure.
Otherwise, reimbursement is due no later than 30 days after the employee submits
an expense claim.

The section requires an expense claim but states no submission deadline, receipt
format, itemization rule, certification, or substitute for missing documentation.
It also states no interest rule.

Policies matter, but the statute supplies no cap framework

Iowa Code § 91A.6(1)(c) recognizes employer agreements and policies about expense
reimbursement. Its disclosure duty applies after the director gives the notice
described in subsection (2): the employer must then make those agreements and
policies available to employees on written request.

Chapter 91A does not itself state a preapproval procedure, expense specification,
dollar cap, mileage rate, or rule explaining when policy noncompliance defeats an
otherwise authorized claim.

A dispute does not excuse the conceded amount

If the employer and employee dispute the amount, § 91A.7 requires the employer
to reimburse the expenses it concedes are due without condition. Paying the
conceded amount does not eliminate possible liability for the disputed balance.

Civil remedies depend on whether the failure was intentional

Iowa Code § 91A.8 allows recovery of the unpaid expense, court costs, and usual
and necessary attorney's fees. If the failure to reimburse was intentional, the
employee may also recover liquidated damages as defined in § 91A.2(6).

Under § 91A.10(1)-(3), the director may take assigned claims and bring a civil action to
recover expense and liquidated-damages claims for the employee. An employee who
has not assigned the claim may instead settle or bring an action under § 91A.8.

Required private-sector drug testing is employer-paid

Iowa Code § 730.5(1)(e) defines the covered private-sector employer, and
§ 730.5(7)(b) requires it to pay all actual costs of drug or alcohol testing it
requires for an employee or prospective employee. That narrow cost rule does not
create a general right to reimbursement for other work expenses.

What trips people up

The 30-day clock begins when the employee submits the expense claim, not when the
expense is incurred. But § 91A.3 does not create a deadline for the employee to
submit that claim, so an employer policy may become practically important even
though the statute does not explain every policy consequence.

Authorization is also distinct from necessity. A cost may be useful or necessary
to the work and still fall outside § 91A.3(6) if the employer did not authorize
it. Conversely, the statute does not require the employee to prove a separate
primary-benefit test once authorization and incurrence are established.

Common questions

Does Iowa require mileage reimbursement?

Iowa supplies no universal private-sector mileage rate in Chapter 91A. Mileage
falls within the general rule when it is an employer-authorized expense incurred
by the employee.

Does the employee need a receipt?

Section 91A.3 requires submission of an expense claim but does not state a receipt,
itemization, certification, or missing-receipt rule. An employer agreement or
policy may address documentation.

When must the employer pay?

The employer may reimburse in advance. Otherwise, payment is due no later than
30 days after the employee submits the expense claim.

Who pays for employer-required drug or alcohol testing?

The employer pays all actual testing costs under § 730.5 for covered employees
and prospective employees.

Statutes and sources

• Iowa Code §§ 91A.2, 91A.3, 91A.6-.8, and 91A.10. Coverage,
  employer-authorized expenses, the 30-day payment rule, policy disclosure,
  disputed claims, and civil remedies. Official current chapter
  (accessed July 14, 2026).
• Iowa Code § 730.5. Employer payment of required private-sector drug and
  alcohol testing costs. Official current section
  (accessed July 14, 2026).