Travel Reimbursement: Minnesota Laws For Employees

Minnesota has several laws and guidelines in place that relate to travel reimbursement for employees. These laws outline the responsibilities of both employers and employees when it comes to travel-related expenses. The state's guidelines cover a range of topics, including prior approval requirements, reimbursement rates, and eligible expenses. Minnesota Statutes also authorize public entities to compensate employees for the use of their personal vehicles for official business, with certain conditions in place. Understanding these laws is essential for ensuring fair and compliant practices in employee travel reimbursement.

Mileage reimbursement

There are two options for determining the mileage reimbursement rate for any given trip. If an employee uses their own vehicle because no state vehicle is available, the reimbursement rate is the current IRS rate. However, if a state vehicle is offered but the employee declines and uses their own vehicle, the reimbursement rate is 7 cents less than the current IRS rate.

It is important to note that the term "state vehicle" refers to any vehicle owned, leased, or loaned to the state. Additionally, employees who use their own vehicles for work-related travel must comply with state policies outlined in the Minnesota Management and Budget's SEMA4 Operating Policy and Procedure Manual, Employee Business/Travel Expenses.

For employees of Minnesota State Community and Technical College, the reimbursement rate for mileage is the actual amount and not rounded up or down. The college also provides guidelines for employees who wish to drive a college vehicle, requiring them to submit a Vehicle Use Agreement and consent to a driving record review annually.

Meals and accommodation

When it comes to meals and accommodation, there are a few key points to note in relation to Minnesota's laws on travel reimbursement for employees.

Firstly, employees are responsible for ensuring that their travel expenses, including meals and accommodation, are for valid business-related purposes and comply with the relevant policies, procedures, bargaining agreements, compensation plans, state and federal laws, and IRS guidelines.

In terms of meals, Minnesota's laws outline specific rules for claiming reimbursement. For example, to claim breakfast, travel must have started before 6 am or be in overnight status. To claim lunch, the employee must be in travel status between 11 am and 1 pm, which means being at least 35 miles from their home campus. To claim dinner, the employee must be in travel status after 7 am. It's important to note that meal reimbursements cover the actual cost of the meal, including tax and a reasonable gratuity, but alcoholic beverages are not included.

Regarding accommodation, employees should aim for the lowest government rate available at a reasonably priced, licensed lodging facility. Staying at a private residence, such as that of a relative or friend, is not a reimbursable expense. Room charges and taxes can be directly billed to the employee's college, university, or system office. However, other charges like meals, dry cleaning, and telephone calls must be paid by the employee directly to the lodging facility at checkout.

Additionally, Minnesota Statutes authorize public entities to compensate or reimburse employees for using their personal vehicles on official business. This includes reimbursing employees for the actual parking fees they incur. If an employee uses a rental car, they may be reimbursed if a state car is unavailable, and the rental is the only or least expensive option.

It's important to remember that each organization may have its own policies regarding travel reimbursement, but they must adhere to the state guidelines outlined above.

Rental vehicles

Minnesota employees can rent vehicles for field trips, meetings, and other state business. For instance, St. Cloud State University provides its employees, student workers, and student organizations with access to an account with Enterprise-Rent-A-Car in St. Cloud.

Employees must comply with Minnesota State travel policies and procedures, their bargaining agreement or compensation plan, state laws, federal laws, and IRS guidelines. They are also required to complete the necessary forms for reimbursement of authorized business travel expenses.

The rental of a vehicle by a traveler is authorized only when the use of local transportation (such as taxis, airport limousines, and airport shuttles) is not practical or is expected to be more expensive. Rental vehicles should be reserved and rented at the lowest applicable discounted rate possible or available. The use of compact or mid-size/intermediate rental vehicle categories is recommended unless there are three or more passengers, or excess baggage requires a large vehicle.

When using rental vehicles for domestic travel, travelers are expected to decline rental vehicle insurance as the State of Minnesota has provisions for insuring rental vehicles against damage through the Risk Management Division. However, for international travel, travelers should accept all insurance coverage when renting vehicles in a foreign country, and this insurance coverage is reimbursable.

Departments may reimburse travelers for the cost of vehicle rentals and gas charges, but not mileage.

International travel

All international travel by employees of Minnesota State colleges and universities must receive written approval by the college or university president prior to the proposed travel. Meanwhile, international travel by presidents and system office employees must receive written approval by the chancellor or designee.

Employees must register their international travel in advance of the trip, regardless of the funding source. There is no central authorization for international travel; authorization remains at the local collegiate or departmental level.

No system-related travel may be made to countries or areas under a U.S. Department of State travel warning unless prior approval has been obtained in writing from the chancellor or designee. Such prior approval will be granted only in limited circumstances and will consider the academic, professional development or business purpose of the travel, the benefits of the travel to the system and the participants, the importance of the trip to the mission of the college, university or system, the political, physical, security and travel conditions in the country or region, the ability to evacuate system travelers if necessary, the proximity of the proposed travel to a location identified by the Department of State as a safety concern, the manageability of legal risk to the system, and any other relevant factors.

In cases of international travel, travelers should accept all insurance coverage when renting vehicles in a foreign country. Insurance coverage purchased in foreign countries is reimbursable.

When expenses are incurred in foreign currencies, travelers must submit foreign expenses in U.S. dollars using the exchange rate provided in Chrome River on the date of the expense. For purchases made with a personal credit card, use the exchange rates provided by the credit card company. Include documentation indicating the exchange rates used to make the conversions. When using the University’s Travel Card, exchange rates are handled by the bank.

Employees who choose to travel to countries in which a travel advisory has been issued by the United States Department of State are required to submit the Request for Approval of Travel to Country Under US Department of State Travel Warning or Alert Form.

Non-employee travel

Non-employees who travel on behalf of Minnesota State may be reimbursed for travel-related expenses. The best practice is for Minnesota State to arrange and pay directly for non-employee airfare and lodging. Meals and lodging must be reimbursed as actual expenses, not exceeding the per diem limits. Receipts are required for all non-employee expenses. Expenses incurred by a spouse or personal guest are not reimbursable, unless they conform to the acceptable conditions outlined in Procedure 5.19.3.

Minnesota Statutes authorise public entities to compensate or reimburse their employees for the use of their own personal vehicles on official business. Governing bodies can set a mileage allowance or pay a "monthly or periodic allowance". The mileage reimbursement rate for 2006 was $.445 per mile, which was consistent with the IRS. Employers may have their own policies regarding business-related travel expenses, however, they must fall within the state guidelines. If you are given a mileage rate and it is below the federal standard amount, you may be able to claim the difference. If you are paid at a higher rate, the excess may be considered taxable wages.

Mileage shall be paid for the shortest direct route according to official highway department records. Odometer readings are not required but may be used if mileage cannot be determined from state maps or mileage books. The department head shall require proof of automobile insurance before approving private car mileage. When mileage is claimed in lieu of commercial transportation, the total cost of mileage claimed cannot exceed the lowest cost obtainable from a commercial carrier. Lodging and meals reimbursements are limited to those that would have been incurred using commercial transportation. An employee may be reimbursed for car rental if a state car is unavailable for use and a rental car is the only or least expensive method of transportation. Employees using state-owned or private cars shall be reimbursed for the actual parking fee.

If you travel frequently for work, you are likely aware of your company's travel regulations. If you do not travel regularly, you may want to discuss these policies beforehand so that you are aware of what is reimbursable. Most employers require prior authorisation to use your own vehicle for business. Also, if you are injured on the job, Minnesota law provides for reimbursement of mileage expense to and from your chiropractor and/or physician.

Frequently asked questions