Run: Expense Reimbursement Policy

This policy establishes the rules for reimbursing ordinary and necessary business expenses incurred on behalf of the company. It is designed to ensure expenses are business-related, properly approved, documented, and reimbursed in a consistent manner that supports IRS accountable plan requirements and internal controls.

This policy applies to all employees, temporary workers, and other authorized personnel who incur expenses on behalf of the company. It applies to domestic and international business travel, client entertainment, supplies, mileage, training, and other approved business purchases unless a separate policy or written exception applies. **California employees:** reimbursement practices must be reviewed for compliance with California Labor Code § 2802, which requires reimbursement of necessary business expenses. **All jurisdictions:** where local law provides greater employee reimbursement rights than this policy, the law controls.

The company may reimburse the following business expenses when they are reasonable, necessary, and supported by documentation: 1. **Travel expenses:** airfare, rail, ground transportation, baggage fees, parking, tolls, and lodging. 2. **Meals and incidental expenses:** meals during approved travel or business meetings, subject to per diem rules or itemized limits. 3. **Mileage:** use of a personal vehicle for approved business travel, reimbursed at the company-approved mileage rate. 4. **Supplies and materials:** office supplies, shipping, printing, and other approved operational purchases. 5. **Training and professional development:** registration fees, required materials, and approved certification costs. 6. **Client-related expenses:** approved business meals or hospitality expenses that comply with company limits and anti-bribery rules. The following are generally not reimbursable unless specifically approved in writing in advance: personal expenses, commuting costs, traffic or parking fines, alcohol without explicit approval, spouse or guest travel, and expenses lacking adequate documentation.

Employees must obtain pre-approval before incurring any expense that is not routine or that exceeds the department's standard limit. Pre-approval must be documented in writing through the designated expense system, email, or other approved method. Pre-approval must include: - business purpose - estimated amount - dates of travel or purchase - names of attendees, when applicable - budget code or cost center Expenses incurred without required pre-approval may be denied unless the employee demonstrates a good-faith business need and the manager approves an exception.

Original or electronic receipts are required for all expenses above the company threshold and for any expense where the amount cannot be verified from other records. Receipts must show the date, vendor, amount, and nature of the purchase. Employees must also provide: - a clear business purpose for each expense - names and business relationship of attendees for meals or entertainment - itemized receipts for meals when required by the expense system or tax rules - mileage logs showing origin, destination, purpose, and miles driven - proof of payment when requested Missing receipts must be explained promptly and may require a signed attestation or manager approval. Repeated missing documentation may result in denial of reimbursement.

Where per diem is authorized, employees must use the company-approved per diem rate and follow any applicable IRS substantiation rules. Per diem may cover lodging, meals, and incidental expenses only when permitted by the company and applicable law. Per diem requests must identify: - travel location - dates and times of travel - number of eligible days - whether meals were provided by a client, conference, or hotel Mileage reimbursement will be paid at the company-approved rate, which should be reviewed periodically for alignment with IRS guidance. Employees must record mileage contemporaneously and may not claim both mileage and fuel costs for the same trip unless explicitly allowed.

Expense reports must be submitted within 30 calendar days after the expense is incurred or the travel ends, unless a stricter deadline is required by law, client contract, or project rules. Late submissions may be denied. The standard approval workflow is: 1. Employee submits expense report with required documentation. 2. Manager reviews business purpose, pre-approval, and policy compliance. 3. Finance or Accounts Payable audits the submission for accuracy and completeness. 4. Approved reimbursements are processed in the next regular payment cycle or within the timeframe required by applicable law. The company may request additional information before approving payment.

**Employees / policy holders** must obtain pre-approval when required, submit accurate and complete expense reports, and retain supporting documents until reimbursement is finalized. **Managers** must confirm the business need, verify budget availability, and review exceptions in good faith. **Finance / Accounts Payable** must audit claims, enforce documentation standards, and maintain records in accordance with retention requirements. **HR** must coordinate accommodation requests and ensure the policy is applied consistently without discrimination under EEOC-enforced laws. **Policy holder** responsibilities include timely submission, truthful certification, and prompt response to follow-up questions.

The company may deny reimbursement for expenses that are personal, unsupported, untimely, excessive, or not compliant with this policy. Repeated violations, falsified receipts, or intentional misrepresentation may result in corrective action up to and including termination of employment. Any exception to this policy must be approved in writing by Finance or an authorized executive and must state the business reason for the exception. **FLSA note:** this policy does not permit unlawful wage deductions or reduce overtime pay obligations where reimbursement issues affect nonexempt employees. **ADA / interactive process:** employees who need a modified submission process or documentation method due to a disability should contact HR to request a reasonable accommodation. **NLRA note:** nothing in this policy is intended to restrict protected concerted activity or other rights under Section 7 of the National Labor Relations Act.

This policy will be reviewed at least annually and updated as needed to reflect changes in business practices, tax guidance, wage-and-hour requirements, and applicable state or local law. The company may revise reimbursement rates, deadlines, or documentation standards with notice to employees.