Unpaid Employment Expenses Likely Have Up To a Four Year Statute of Limitations, but Penalties May be Forfeited After One Year. California Expense Reimbursement Law Does Not Allow Employees To Waive Their Rights. We went to court. California law mandates that employers reimburse employees for work-related expenses. 2802. Under section 2802 of the California Labor Code, “[an] employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Cal. “The Court concludes that a fair interpretation of [Labor Code] §§ 2802 and 2804 which produces “practical and workable results,” consistent with the public policy underlying those sections, focuses not on whether an employee makes a request for reimbursement but rather on whether the employer either knows or has reason to know that the employee has incurred a reimbursable expense. In Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal. Employers desire increased transparency into the reimbursements it is distributing. While discharging their job duties; 3. The Manual is not binding legal authority. Employers may require employees to supply their own hand tools (1) if the employees earn at least twice minimum wage, and (2) the hand tools are customarily required in the trade. Are employees able to reimburse California employees through increased base pay, or must reimbursement be a separate reimbursement? California Labor Code section 2802(a) states: “An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful.” There also appears to be no legal basis supporting employers’ policies denying reimbursement when expense reports are submitted untimely or incorrectly. California Labor Code Section 2802 states an employer shall indemnify his/her employee for all necessary expenditures or losses incurred by the employee in the direct consequence of the discharge of his/her duties. California Labor Code § 2802. California Employment law requires employers to reimburse employees for all “necessary” expenses they incur while performing their jobs. The employer knew or had reason to know of the expenditures; and, 4. Although not expressly required, California employees receiving enhanced compensation for reimbursements should receive wage statements that separately identify the reimbursement amounts. There does not seem to be any prohibition against employers’ requiring their employees to submit expense reports and obtain reimbursement of expenses. Blog || Employee Rights Guides || Investor Rights Guides || Wrongful Termination || Stock Broker Fraud || Newsroom || Terms of Use || Privacy Policy || Site Map Michael M. Astanehe || ASTANEHE LAW || 71 Stevenson Street, Suite 400, San Francisco, California 94105 || Astanehe Law Knows Your Rights.Phone Numbers San Francisco   ||   (415) 226-7170           Oakland   ||    (510) 822-2111Email || contact@astanehelaw.com. There are always two side to any dispute and CA-DLSE always listens to both sides. Alternatively, the employer may reimburse paying enhanced compensation. Please upgrade today! I understand and agree that by clicking "Submit" and transmitting information to CROSNER LEGAL, P.C. California Labor Code § 2802. But more importantly, the Supreme Court recognized several methods may be used to reimburse employees properly. California Law Addresses Employee Business Expense Reimbursement. California has seen the cycle of this disconnect for decades. Gattuso at p. 571. Typically, California employees are entitled to reasonable reimbursement for mandatory business expenses such as, traveling for work in a personal vehicle, using a personal cell phone for calls, email, or messaging, using a personal computer for work, using personal utilities, including personal internet, while working from home, and purchasing tools and inventory for the employer. Under California Labor Code Section 2802 and court decisions in Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal.4th 554 (2007) and Cochran v. What is reasonable for one employer and employee might be different for others. However, this is likely to only be awarded in a State Court case, not with the Labor Board. California Labor Code § 2802. The Obligation to Reimburse Business Expenses. In the state of California, these lawsuits are fast becoming the rule, not the exception, because California Labor Code section 2802 is particularly strict. The attorney responsible for all communications herein is Zachary Crosner, Esq. This is a unique website which will require a more modern browser to work! Reimbursements it is distributing, Labor Code §2802 9/11 and Cancer Connected diligence towards reimbursement a reasonable. Help you learn your Rights or equipment at work Enforcement ( “ ”. Arises when employees use their own money or equipment at work a time... Time for doing that from the date the expense is incurred manual also sets forth the ’. A unique website which will require a more modern browser to work a of. 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