video conference meetingIn today’s dynamic work environments, employees often incur various expenses while fulfilling their professional duties. From using personal phones for work calls to traveling for business purposes, the lines between professional and personal expenditures can sometimes blur. According to California Labor Code §2802, employers must reimburse workers for all necessary expenses or losses incurred as a direct consequence of their duties. However, what expenses must an employer reimburse? Ensuring clarity on this matter not only helps foster a healthy workplace culture but also safeguards employees from any unjust financial burdens. 

When an employer fails to reimburse necessary expenses, employees may feel undervalued and unprotected. With the leading employment lawyers on your side at Blackstone Law, employees can seek legal recourse by understanding their legal rights and, if needed, initiate a wage and hour lawsuit. 

8 Work-Related Expenses Employers Must Reimburse in California 

California’s Labor Code 2802 stipulates that employers must reimburse employees for expenses incurred while performing work tasks, aiming to prevent businesses in California from offloading essential operational costs onto their workforce. For an expense to qualify for reimbursement under the labor code, it must be both reasonable and necessary for the employee to perform their duties directly related to their job functions.

Employees are entitled to these reimbursements, and any contractual clause suggesting otherwise is unenforceable and deemed invalid in court. Terminating employees for asserting their right to reimbursement can lead to employer liability for wrongful termination.

Eligible work-related expenses may encompass the following:

  1. Travel costs
  2. Business-related usage of personal phones
  3. Conference fees
  4. Work uniform costs
  5. Expenses for business entertainment
  6. Driving expenses, including parking fees, as well as mileage and tolls for personal vehicle usage
  7. Postage
  8. Educational or training costs

In cases where an expense is only partially work-related, such as using a personal phone for work, a portion of the expense may be reimbursed. The reimbursed amount should reasonably represent the work-related usage.

How Does This Affect Remote Employees in California? 

The importance of an employee’s entitlement to reimbursement for work-related expenses has been amplified in the wake of the COVID-19 pandemic. A substantial number of employees have transitioned to remote work, necessitating the purchase of essential home office and telecommunication tools. Given that such equipment is essential for an employee’s tasks, it may qualify for reimbursement.

Typical expenses associated with remote work that may be subject to reimbursement include:

  • Office furnishings such as chairs and desks
  • Printing supplies, encompassing printers, paper, and ink
  • Fees for online services, like a premium Zoom account
  • Home utility bills, including air conditioning and heating
  • Charges for home internet services

As these costs are incurred for business purposes, employers may reimburse them. However, it is important to note that any equipment or subscriptions reimbursed by the employer effectively become company property. In the event of termination, the employee might be required to return the purchased items, as they are considered assets of the company.

Speak With the Leading Employment Lawyers at Blackstone Law 

Understanding your rights regarding reimbursable work-related expenses is vital for both employers and employees. Employers are obligated to reimburse reasonable and necessary expenses incurred by employees while performing job-related duties, ranging from travel costs to home office equipment for remote work. If you believe your rights to fair reimbursement have been overlooked or violated, seeking the legal guidance of the award-winning employment lawyers at Blackstone Law can help clarify your entitlements and represent your interests to ensure your rights are upheld.

Schedule a complimentary consultation with one of our employment lawyers today for an assessment of your claim by calling (310) 956-4054 or filling out a contact form.