diff --git a/src/chocolatey.resources/helpers/functions/Install-ChocolateyShortcut.ps1 b/src/chocolatey.resources/helpers/functions/Install-ChocolateyShortcut.ps1
index 446eb516f3..9af7438d00 100644
--- a/src/chocolatey.resources/helpers/functions/Install-ChocolateyShortcut.ps1
+++ b/src/chocolatey.resources/helpers/functions/Install-ChocolateyShortcut.ps1
@@ -45,6 +45,9 @@ The full absolute path to the target for new shortcut.
 OPTIONAL - The full absolute path of the Working Directory that will be
 used by the new shortcut.
 
+As of v0.10.12, the directory will be created unless it contains environment
+variable expansion like `%AppData%\FooBar`.
+
 .PARAMETER Arguments
 OPTIONAL - Additonal arguments that should be passed along to the new
 shortcut.
@@ -164,7 +167,7 @@ Install-ChocolateyPinnedTaskBarItem
 	}
 
   if ($workingDirectory) {
-    if (!(Test-Path($workingDirectory))) {
+    if ($workingDirectory -notmatch '%\w+%' -and !(Test-Path($workingDirectory))) {
       [System.IO.Directory]::CreateDirectory($workingDirectory) | Out-Null
     }
 	}