Legal Question in Business Law in Illinois

Can corporations require employees to carry corporate debt on personal accounts?

Can corporations require employees to carry corporate debt on personal accounts?

Is it legal for a Corporation to require its employees to carry a personal credit card (issued by the company but not a corporate card) to handle travel expenses? Obviously on the individual basis this might only be several $1000 dollars of running debt but corporate wide this would be a huge value for large companies.

It would seem strange to me that any debt should be the responsibility of a personal account whether voluntary or required.


Asked on 11/06/06, 11:29 am

1 Answer from Attorneys
David K. Staub Staub Anderson LLC

Re: Can corporations require employees to carry corporate debt on personal accounts?

There is nothing wrong with an employer requiring an employee to incur travel expenses first and seek reimbursement afterwards.

In fact, there is no general requirement that an employer must reimburse business-related expenses incurred by an employee, although it is possible that the required expenses could be enough to make the employer in violation of other laws (such as minimum wage or overtime payment requirements).

David K. Staub, an Illinois business attorney

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Answered on 11/06/06, 12:53 pm


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