How do I handle expense reports from union and non-union workers differently?

Key takeaways

• Union workers require expense workflows that enforce collectively bargained per diem rates and reimbursement rules, while non-union employees follow your company's own expense policies. Vergo codes expenses by inference from your accounting structure and history, learning which employees are union or non-union and applying the correct policy to each transaction automatically.
• Establish separate approval workflows for each group: route union expenses through supervisors who verify per diem compliance, and route non-union expenses by amount or GL account.
• Automate policy enforcement to catch exceptions—such as union claims exceeding negotiated rates—before reimbursement rather than during manual review.
• Sync approved expenses from both groups into your ERP or accounting system with accurate job cost coding to maintain payroll accuracy and project tracking.

Why union and non-union expense policies differ

Union workers operate under collective bargaining agreements that specify exact per diem rates, meal allowances, lodging limits, and reimbursement timelines. These terms are legally binding and vary by union, trade, and sometimes by project location. Non-union employees follow your company's internal expense policy, which you control and can adjust as business needs change. Mixing the two under a single workflow creates compliance risk: approvers may inadvertently apply company policy to union expenses or miss per diem overages, leading to grievances or audit findings. Separating the workflows from the start ensures each group's expenses are reviewed against the correct standard and that reimbursements meet contractual or policy requirements without exception.

Setting up approval workflows for union workers

Union expense workflows should route through supervisors or project managers who know the applicable collective bargaining agreement and can verify that per diem claims match negotiated rates. Require pre-approval for travel and lodging expenses so field staff understand allowable limits before incurring costs. Automate the comparison of submitted amounts against union rate tables to flag overages immediately rather than during manual review. This catches errors at the point of submission and reduces the burden on accounting teams. Vergo approval workflows are optional and fit how you already control spend: route union expenses by project or GL account to supervisors who verify per diem compliance, or let policy flags catch only what breaks a rule. Once approved, union expenses should sync into your ERP with labor cost codes that distinguish union labor from non-union labor, preserving accurate job costing and ensuring payroll systems apply the correct benefits and withholdings tied to union status.

Setting up approval workflows for non-union workers

Non-union employees should follow approval workflows that reflect your company's internal controls: route by dollar amount, by GL account, or by project depending on your risk tolerance and organizational structure. For example, expenses under a threshold might skip approval entirely and rely on policy flags to catch exceptions, while large or sensitive categories require manager sign-off. Communicate your expense policy clearly during onboarding and provide easy access to guidelines so employees know allowable categories, receipt requirements, and submission deadlines. Automate policy checks—such as flagging personal expenses, duplicate receipts, or out-of-policy amounts—so approvers focus on judgment calls rather than rule enforcement. This streamlines the process for non-union staff while maintaining the control you need over company spend.

A practical example

A general contractor has 40 union carpenters on a hospital project and 15 non-union office and field staff. Union carpenters receive a $75 daily per diem for meals when traveling to the site, as specified in their collective bargaining agreement. Non-union project coordinators follow the company's policy allowing actual meal expenses up to $60 per day with receipts. A union carpenter submits a $90 meal claim; the system flags it because it exceeds the $75 union rate, and the supervisor rejects it before reimbursement. A non-union coordinator submits a $55 dinner receipt, which is auto-approved because it falls within policy and includes a valid receipt. Both expenses sync into the ERP with correct labor classifications and job cost codes, keeping payroll and project accounting accurate without manual data entry or reconciliation.

How Vergo handles this

Vergo codes expenses by inference from your accounting structure and history, learning which employees are union or non-union and applying the correct policy to each transaction automatically—no rule library to build or keyword lists to maintain. Approval workflows are optional and fit how you already control spend: route union expenses by project or GL account to supervisors who verify per diem compliance, route non-union expenses by amount, or skip approvals entirely and let policy flags catch only what breaks a rule. Employees handle everything by text message—no app to download, no portal login—and Vergo chases missing receipts itself instead of waiting for a report. Every coding shows why it was chosen, so a reviewer confirms in seconds instead of re-coding by hand. Card spend, employee reimbursements, and AP invoices run through one coding model—same coding, same review, one reconciliation—and once transactions clear, they sync into your accounting or ERP software with accurate job cost codes for both union and non-union workers.

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