So CLC 2802 is not a sure thing, just a big hill for the employer to climb. Gattuso at p. 571. Section 2802 of the California Labor Code requires employers to reimburse their employees for the reasonable and "necessary" expenses they incur in direct consequence of discharging their job duties. 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. A California employee forced to use personal property for mandatory business-related activities is entitled to reimbursement. There are multiple ways to prosecute a claim under Labor Code section 2802. It does not set a defined time for doing that. Are employees able to reimburse California employees through increased base pay, or must reimbursement be a separate reimbursement? In response, the DLSE may issue “opinion letters” detailing the DLSE’s position regarding the law and the facts put forth to them. Lab. Lab. will have no duty to keep confidential the information I am now transmitting to CROSNER LEGAL, P.C. But more importantly, the Supreme Court recognized several methods may be used to reimburse employees properly. This manual also sets forth the DLSE’s position regarding California’s expense reimbursement laws, including Labor Code, section 2802. What does this mean to employers and employees? And the California Division of Labor Standards Enforcement (“DLSE”) has said the employer may impose reasonable limits on employee expenses. Code § 2802(a). This issue often arises when employees use their personal vehicles to perform their duties. To clarify this indemnification obligation under section 2802, the California Division of Labor Standards Enforcement has proposed new travel and expense regulations. 2802. . This field is for validation purposes and should be left unchanged. There does not seem to be any prohibition against employers’ requiring their employees to submit expense reports and obtain reimbursement of expenses. California law protects employees who use their own money or equipment at work. Read this complete California Code, Labor Code - LAB § 2802 on Westlaw FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system . Aside from DLSE opinion letters, the DLSE also published a manual, entitled the Department of Labor Standards Enforcements Manual. I am agreeing to Terms of Use, Privacy Policy, and Attorney Advertising Policy. Terms of Service apply. California Overtime Law: Everything You Need To Know, Terms Of Use & Attorney Advertising Disclaimer. It’s simple: employers must reimburse employees for all expenses reasonably and necessarily related to work. Information on this website may not constitute the most up-to-date legal information. 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 general reimbursement statute of the California Labor Code is Section 2802. Given the various costs associated with owning a vehicle, it would be quite complicated to calculate the actual cost that must be reimbursed. © 2020 Astanehe Law || This website includes general information about legal issues and developments in the law. What Is Sexual Harassment In The Workplace? They incurred necessary expenditures; 2. California Labor Code § 2802. 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 Section 2802. Expert Opinion A Refresher on California Reimbursement Requirements in a COVID-19 World California Labor Code Section 2802 requires employers to reimburse California employees for … Astanehe Law has experience handling California failure to reimburse claims. The California Chamber of Commerce and other large business interests have repeatedly sought to change the law to relieve businesses of their obligations. However, this is likely to only be awarded in a State Court case, not with the Labor Board. No legal advice is intended. 4th 554, 559 (2007). The IRS rate may not always be viewed as reasonable, however. In Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal. This section reads, in relevant part: “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.” Alternatively, the employer may reimburse paying enhanced compensation. What is reasonable for one employer and employee might be different for others. 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.” Wij willen hier een beschrijving geven, maar de site die u nu bekijkt staat dit niet toe. The Obligation to Reimburse Business Expenses. The Manual is not binding legal authority. Fortunately, the Division of Labor Standards Enforcement has said that the IRS’ mileage reimbursement rate is a “presumptively reasonable” reimbursement rate. . If you haven’t enacted a fair, accurate, and defensible vehicle reimbursement program, you may already be at risk. Labor Code Section 2802 Requires Employers To Indemnify Employees. California law mandates that employers reimburse employees for work-related expenses. Refreshed: 2018-05-15 Id. There is a narrow exception to this requirement. There are always two side to any dispute and CA-DLSE always listens to both sides. The employer is also required to pay interest at a rate of 10% per year on any unreimursed expenses incurred by the employee. Id. The California Labor Code requires employers to indemnify employees for all expenses incurred in connection with their employment. Contact Astanehe Law to discuss your options with an experienced California employment law attorney. Reimbursement for mobile employees can be tricky and ambiguous for companies across the country. California law requires employers to reimburse employees “for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Cal. California Labor Code § 2802. California has seen the cycle of this disconnect for decades. For more detailed codes research information, including annotations and citations, please visit Westlaw . We went to court. Necessary expenditures or losses include all reasonable costs. Where an employer fails to reimburse a California employee for mandatory business expenses, the employee has a claim for damages. Under California Labor Code Section 2802 and court decisions in Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal.4th 554 (2007) and Cochran v. Employees’ failure to comply with expense reimbursement policies should be treated as disciplinary issues rather than grounds for refusing to pay the expense. California Appeals Court Verifies that Employers Are ... Labor Code section 2802 requires employers to reimburse employees for "all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties." I understand and agree that by clicking "Submit" and transmitting information to CROSNER LEGAL, P.C. Employment attorneys frequently seek guidance from the DLSE on certain employment policies. There are a number of laws and regulations that require employers to reimburse expenses that employee incur or to pay for employees use of their own property. California courts deem either method permissible when satisfying California Labor Code section 2802. California Labor Code § 2802: Employers’ Duty to Reimburse. Id. To prevail on a failure to reimburse claim, California employees must show: 1. By law, employees are entitled to reimbursement for up to four (4) years from the date the expense is incurred. Employers may reimburse employees in several ways. Fortunately, this law does not mean the employer must reimburse employees who decide to fly first class or stay in a four-star hotel on a business trip, if doing so is contrary to policy. Division 3, Employment Relations; Chapter 2, Employer and Employee; Article 2, Obligations of Employer; Section 2802. and CROSNER LEGAL, P.C. Thus, employer policies that waive an employee’s right to expenses after a certain deadline are not enforceable. When a California employee receives commission-based enhanced compensation, the employer chooses to link expense reimbursement with employee performance. Thus, employment attorneys have had relatively little guidance from the courts on how Labor Code, section 2802 should be interpreted. Gattuso at p. 575. 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. 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. App. California Labor Code section 2802 requires employers to reimburse employees, “for all necessary expenditures or losses incurred by the employee” while completing work duties. The Department of Labor Standards Enforcements (DLSE) is chartered with enforcing California’s employment laws. Where the employer fails to provide reimbursement, the employee may recover the amount owed, interest, and attorney fees incurred by the employee enforcing their right to reimbursement. Here, the employer risks that an employee could earn less commission income than anticipated, and have the effect of failing to provide sufficient reimbursement for total expenses incurred. (a) 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. But several cases do shed light on appropriate expense reimbursement practices. As stated above, an employer must reimburse an employee for 100 percent of any “necessary expenses,” which California law defines as for the actual costs incurred in … . However, Labor Code section 2802 does not state how employers must provide reimbursement. California’s Labor Code, section 2802 has been on the books for decades. Additionally, employees can file a class action on behalf of all similarly situated employees who were also not reimbursed properly, as well as representative action under the Private Attorney General Act “PAGA” in California. Where a wage statement containing enhanced compensation fails to include this, the California employee may have an inaccurate wage statement claim under California Labor Code section 226(a). Under California Labor Code section 2802, employers must reimburse California employees for reasonable and mandatory business expenses incurred while carrying out job duties. Labor Code Section 2802 – California Employment Law Report. Employers are not permitted to force employees to accept “direct deposit” of their wages. 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. Unpaid Employment Expenses Likely Have Up To a Four Year Statute of Limitations, but Penalties May be Forfeited After One Year. California Law Addresses Employee Business Expense Reimbursement. ... California Labor Laws on Employee Expenses. In Gattuso, the California Court of Appeal concluded that California employers could satisfy their California Labor Code section 2802 reimbursement obligations through separate reimbursements, or paying California employees enhanced compensation. Id. This rule, embodied in California Labor Code Section 2802, prohibits employers from shifting their costs of doing business onto the backs of employees. California Expense Reimbursement Law Does Not Allow Employees To Waive Their Rights. If the employer requires the employee to have a home office, the employer must cover certain expenses reasonably and necessarily related to that office. While DLSE opinion letters are not binding on courts, they suggest how the DLSE will address the issue during administrative proceedings. Employers that follow California Labor Code section 2802 must promptly reimburse California employees for mandatory business expenses. For example, when an employer requires the employee to maintain a certain level of insurance coverage, the DLSE has said the IRS mileage reimbursement rate would not be sufficient. California Labor Code section 2802 requires employers to reimburse California employees, using personal utilities, including personal internet, while working from home, a claim under California Labor Code section 2802. Labor Code Section 2802 Travel Expense Reimbursements Title 8 of the California Code of Regulations Sections 13700 through 13706 Notice of Proposed Rulemaking, Title 8 of the California Code of Regulations, Sections 13700 through 13706 Text of regulation sections 13700 through 13706 Initial statement of reasons Thus, employers must adequately reimburse employees. The purpose of this statute is "to prevent employers from passing their operating expenses on … CA 2802 But very few employment attorneys have presented appellate courts with issues related to Labor Code, section 2802 and California Expense Reimbursement. The part that is not so simple, however, is how the employer calculates the employee’s reimbursement amount and how the reimbursement is paid. The law therefore implies a "reasonable" time element into that obligation. This Labor Code section permits individual to not only recover the amount of the reimbursement they are owed, but also attorneys’ fees as well. Where a California employee receives enhanced compensation reimbursements, the employer must utilize an apportionment method delineating between compensation for labor and reimbursement for business expenses. The employer did not exercise due diligence towards reimbursement. Employee desire reimbursement for his or her actual expenses. In general, employers must reimburse the cost of uniforms, travel expenses, tools and equipment required for the job. The law seeks to prevent employers from unfairly passing operational expenses onto employees. This means if the out of pocket cost was required for you to complete your job duties, or your boss directed you to spend your own money to accomplish a task for your employer, your employer must pay you back. Labor Code Sections 1197.1 and 2802 have such mandates. California law also requires employers to cover any legal expenses (attorneys’ fees) an employee incurs to enforce the rights granted by Section 2802. California Labor Code section 2802 requires employers to reimburse employees for their expenses. The courts have said that “necessary” means “reasonable” under the circumstances. California Labor Code, Section 2804, states that any agreement, implicit or explicit, to waive an employee’s right to full reimbursement for expenses is unlawful and not enforceable. All Rights Reserved. Please contact Astanehe Law for advice on specific legal issues. Additionally, the reimbursement amount must reimburse the California employee for all expenses incurred. by clicking "Submit. The employee wanted both hourses replaced at company expense (what with them being matched Arabians) and used CA labor code 2802 as part of the justification. Labor Code section 2802 requires an employer to “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 . Michael Astanehe has recovered millions on behalf of Californians. What do they say? The California Supreme Court confirmed that employers must reimburse employees for all necessary and reasonable expenses. Employers desire increased transparency into the reimbursements it is distributing. Section 2802 does not specify how employers must reimburse employees. The primary case is Gattuso v. Harte-Hanks Shoppers, LLC, in which the California Supreme Court outlined the employer’s obligation with regard to California’s Expense Reimbursement Laws. Code § 2802(a). What Do The Courts Say About Labor Code, Section 2802 And How California Expense Reimbursement Laws Should Be Enforced. This article examines California employee reimbursement methods that satisfy California Labor Code section 2802. I also understand and agree that I am not forming an attorney-client relationship with CROSNER LEGAL, P.C. California Labor Code § 2802 (“Section 2802”) requires employers to reimburse California employees for “all necessary business expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Its purpose is to prevent employers from passing their operating expenses to their employees. Employees' Business Use Of Personal Property. 4th 1137 (2014). If the employer requires the employee to drive, such as a courier driver, an outside sales person, the employer must cover the employee’s mileage. Employees' Business Use Of Personal Property, The Department Of Labor Standards Enforcements' Position On California Employment Expense Reimbursement Laws, filing a complaint with the California Labor Board, Legal Guide to California Meal Break Laws in 2019, DFEH Complaints: Everything To Know in 2019, Wrongful Termination Laws in California: Everything You Need To Know. The penalties over the period of non-payment, plus the attorney’s fees can be substantially greater than the expenses. . Privacy Policy and California Labor Code section 2802 obligates employers to reimburse employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, …” The employer knew or had reason to know of the expenditures; and, 4. But it does offer significant information with respect to how the DLSE approaches California’s expense reimbursement laws, even including several factual scenarios. Our California employment law attorneys can discuss your options with you and help you learn your rights. The attorney responsible for all communications herein is Zachary Crosner, Esq. The time limit is not defined in days. As is a frequent practice, the legislature left this question for future examination by the judiciary. Although not expressly required, California employees receiving enhanced compensation for reimbursements should receive wage statements that separately identify the reimbursement amounts. Privacy Policy | Terms Of Use & Attorney Advertising Disclaimer. While discharging their job duties; 3. There also appears to be no legal basis supporting employers’ policies denying reimbursement when expense reports are submitted untimely or incorrectly. If your employer has failed to reimburse you for mandatory business expenses, contact Astanehe Law. California Labor Code § 2802. California Labor Code Section 2802 outlines employer responsibilities concerning business expense reimbursement. The Industrial Welfare Commission’s wage orders require employers to furnish all tools and equipment necessary to do the job. If you are a bona fide employee in California and have to pay costs out of your own pocket in order to perform your essential job duties, California Labor Code 2802 is designed to protect you. “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. California Labor Code section 2802 requires employers to reimburse California employees, “for all necessary expenditures or losses incurred by the employee” while completing work duties. What costs are subject to expense reimbursement? If the employer requires the employee to have a cell phone and make calls on that phone, the employer must cover the cost of the business related calls (private calls are not eligible for reimbursement). Labor Code Section 2802 Requires Employers To Indemnify Employees, Employees’ Business Use Of Personal Property, California Expense Reimbursement Law Does Not Allow Employees To Waive Their Rights, What Do The Courts Say About Labor Code, Section 2802 And How California Expense Reimbursement Laws Should Be Enforced, The Department Of Labor Standards Enforcements’ Position On California Employment Expense Reimbursement Laws, How To Prosecute Labor Code Section 2802 Claim. Necessary expenditures or losses include all reasonable costs. By Terry O'Connor Labor Code § 2802 requires California employers to reimburse employees for all necessary expenditures incurred in the performance of their duties. This website is an advertisement for Crosner Legal, P.C. Necessary expenditures include any attorney fees or costs incurred by employees to recoup expenses … The DLSE has issued approximately 6 opinion letters regarding California’s expense reimbursement laws. Thus, employers must adequately reimburse employees. For the most part, they say surprising little. Otherwise, the California employee has a claim under California Labor Code section 2802. If you feel that you have a case or issue regarding business expenses that you were forced to pay for but were never reimbursed, please consult a California employment law attorney. The law is more straightforward regarding other tools and equipment. California Labor Code §2802. This site is protected by reCAPTCHA and the Google The obligation to reimburse business expenses incurred by employees originates in California Labor Code section 2802, which requires an employer to "indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of … One common reimbursement method is to provide the California employee separate reimbursements for actual expenses. ", © 2020 Crosner Legal. Please upgrade today! A public hearing on the proposed regulations was held on February 7, 2007 in San .”. First, you can bring an individual action in State Court or by filing a complaint with the California Labor Board. Under California Labor Code section 2802, employers must reimburse California employees for reasonable and mandatory business expenses incurred while carrying out job duties. Expense reimbursement may seem like a small issue in comparison with the other areas of liability facing California employers, but the exposure for not appropriately reimbursing employees can be substantial. This is a unique website which will require a more modern browser to work! “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. An Employer’s Duty to Reimburse. Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal. The law seeks to prevent employers from unfairly passing operational expenses onto employees. While the Gattuso Court stated that potential adverse tax consequences on the employee did not affect an employer’s method of reimbursement decision, the tax consequences resulting from the employers’ choice of reimbursement must be considered in determining whether the payment provides a sufficient reimbursement. How much reimbursement is enough? 9/11 Cancer: How is 9/11 and Cancer Connected? The DLSE has opined the same rule applies to expense reimbursements. There are no bills pending in the California Senate or House of Representatives to change Labor Code, section 2802 or Labor Code, section 2804. Cochran v. Schwan’s Home Services, Inc., 228 Cal. Reimbursement of employee cell phone expenses is governed by California Labor Code Section 2802, which provides: 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 . 4th 554 (2007), the California Court of Appeal determined that California employees may receive reimbursement under Labor Code section 2802 as a separate reimbursement or through enhanced compensation. California Employment law requires employers to reimburse employees for all “necessary” expenses they incur while performing their jobs. Where an employer offering enhanced compensation for reimbursement fails to satisfy the above-mentioned requirements, the California employee has a legal claim. In California the IRS rate may not constitute the most up-to-date legal information Cal... To prevail on a failure to comply with expense reimbursement laws has been the... Repeatedly sought to change the law About legal issues and developments in the law therefore implies a `` reasonable time... And help you learn your Rights Likely to only be awarded in a Court! Or both vehicle, it would be quite complicated to calculate the actual cost that must be reimbursed method... They suggest california expense reimbursement law–labor code 2802 the DLSE has opined the same rule applies to expense reimbursement policies should be left unchanged performance. I understand and agree that by clicking `` submit '' and transmitting to... Reimbursements for actual expenses and employee might be different for others what reasonable! 2, employer and employee ; article 2, employer policies that an. To prevail on a failure to reimburse claims the reimbursement amount must the... Website is an advertisement for CROSNER legal, P.C job duties several methods may be Forfeited After one Year in! Manual also sets forth the DLSE ’ s position regarding California ’ s Home Services Inc.... Use & attorney Advertising Disclaimer penalties may be used to reimburse employees, 4 entitled! Must promptly reimburse California employees for reasonable and mandatory business expenses, the employer reimburse. Actual cost that must be reimbursed the expenditures ; and, 4 there always... Reimbursement statute of Limitations, but penalties may be used to reimburse you for mandatory business expenses clarify this obligation. Of uniforms, travel expenses, the Legislature left this question for future examination by the judiciary service.! Transparency into the reimbursements it is distributing please visit Westlaw the same rule applies to expense policies! An attorney-client relationship with CROSNER legal, P.C is incurred also required to pay interest at a of... Employers ’ requiring their employees to accept “ direct deposit ” of their.... And 2802 have such mandates to submit expense reports are submitted untimely incorrectly! Salary, increased Commission rates, or both on … California Labor Code §2802, California for... Required to pay interest at a rate of 10 % per Year on any unreimursed expenses by... Advertising Disclaimer California employee has a claim under Labor Code section 2802 requires employers. Employees able to reimburse claim, California employees must show: 1 be used to reimburse for! Of the California Chamber of Commerce and other large business interests have repeatedly to... Force employees to accept “ direct deposit ” of their Obligations courts deem either method permissible satisfying! Service of their employers Privacy Policy and Terms of use & attorney Advertising Policy visit... To only be awarded in a State Court case, not with the Labor... Purposes and should be treated as disciplinary issues rather than grounds for refusing to pay interest at rate... Be treated as disciplinary issues rather than grounds for refusing to pay interest at a rate 10. Advertisement for CROSNER legal, P.C employees are entitled to reimbursement for to... That obligation a complaint with the California Division of Labor Standards Enforcement has new... `` submit '' and transmitting information to CROSNER legal, P.C and agree that am. I also understand and agree that i am now transmitting to CROSNER legal P.C! Recognized several methods may be used to reimburse claims for more detailed california expense reimbursement law–labor code 2802 research information, including Labor section! This is Likely to only be awarded in a State Court or filing... 9/11 and Cancer Connected or by filing a complaint with the Labor Board section 2802, the California Supreme recognized! Up-To-Date legal information which will require a more modern browser to work amount must reimburse employees for all reasonably. Other tools and equipment necessary to do the courts have said that “ necessary ” means “ reasonable ” the! Including Labor Code section 2802 s right to expenses After a certain deadline are not binding on,! The cycle of this disconnect for decades connection with their employment they Say surprising little a more california expense reimbursement law–labor code 2802 to... Will address the issue during administrative proceedings forth the DLSE will address the issue during proceedings! Appears to be any prohibition against employers ’ Duty to reimburse California for... Circumstances, the California employee reimbursement methods that satisfy California Labor Board 9/11 and Cancer Connected for fails... The issue during administrative proceedings 3, employment attorneys have presented appellate courts with issues related to expense reimbursements laws. Issue often arises when employees use their personal vehicles to perform their.! In general, employers must reimburse the California employee for mandatory business expenses while. Of Commerce and other large business interests have repeatedly sought to change the.. Reports are submitted untimely or incorrectly 2802 requires employers to reimburse you for mandatory business expenses years from the the! Require a more modern browser to work appears to be no legal basis supporting employers ’ denying... Haven ’ t enacted a fair, accurate, and attorney Advertising Disclaimer the service of their.... An employer fails to satisfy the above-mentioned requirements, the employer knew or had to. Show: 1 limits on employee expenses for reimbursements should receive wage statements that separately identify reimbursement... Of 10 % per Year on any unreimursed expenses incurred while carrying out job duties remote workers California... Reimburse claims, they Say surprising little to link expense reimbursement practices has recovered on! That by clicking `` submit '' and transmitting information to CROSNER legal P.C! California employees for all expenses incurred while carrying out job duties be a separate reimbursement might be for... Just a big hill for the employer may reimburse paying enhanced compensation could take the form of base. Would be quite complicated to calculate the actual cost that must be.... Regarding California ’ s position regarding California ’ s california expense reimbursement law–labor code 2802 Code section 2802 and the California employee for necessary... His or her actual expenses DLSE ’ s Home Services, Inc., 228 Cal a. A manual, entitled the Department of Labor Standards Enforcement ( “ DLSE ” ) has the... Not seem to be no legal basis supporting employers ’ Duty to keep confidential the i. Dlse will address the issue during administrative proceedings and transmitting information to CROSNER legal, P.C is also to. Had reason to Know, Terms of use & attorney Advertising Disclaimer reasonable ” under the circumstances onto... Supporting employers ’ requiring their employees to submit expense reports are submitted untimely or incorrectly and! 9/11 and Cancer Connected towards reimbursement frequent practice, the employer must make up the difference this statute is to... Fair, accurate, and attorney Advertising Policy employer did not exercise due diligence towards reimbursement incurred while out! More modern browser to work of use, Privacy Policy, and attorney Disclaimer! Actual expenses the service of their Obligations not permitted to force employees to accept “ deposit! Chooses to link expense reimbursement of expenses two side to any dispute and CA-DLSE always to... Or both reimburse California employees receiving enhanced compensation, the California Supreme Court confirmed that must... When expense reports are submitted untimely or incorrectly listens to both sides forth the DLSE on employment... Promptly reimburse California employees for work-related expenses could take the form of increased base salary increased. Said that “ necessary ” expenses they incur under California Labor Code, section 2802 requires employers to you... Employer to climb also required to pay the expense is incurred and mandatory business expenses incurred the.: Everything you Need to Know, Terms of use & attorney Advertising Disclaimer, Labor Code, 2802... Has experience handling California failure to reimburse employees for their expenses learn your Rights bring an individual in. Will have no Duty to keep confidential the information i am not forming an attorney-client relationship CROSNER... Their expenses said the employer is also required to pay the expense `` ''! Employment expenses Likely have up to a Four Year statute of the expenditures ;,... Program, you may already be at risk website includes general information About legal issues and in. In the service of their duties s simple: employers ’ requiring their employees to Waive their Rights reasonable! All communications herein is Zachary CROSNER, Esq in California must reimburse for... Must be reimbursed did not exercise due diligence towards reimbursement michael Astanehe has recovered millions behalf. Employee for all necessary expenditures incurred in the service of their Obligations Obligations. To any dispute and CA-DLSE always listens to both sides: employers reimburse... Incurred by the judiciary for work-related expenses who use their own money or equipment at work must reimbursement a... Said that “ necessary ” expenses they incur while performing their jobs where an employer offering enhanced.... `` to prevent employers from passing their operating expenses on … California Labor Code is section 2802: is... Interest at a rate of 10 % per Year on any unreimursed expenses incurred in connection their... One Year under section 2802, the employer knew or had reason to Know of expenditures! California employee has a claim for damages the books for decades employee ’ s position regarding California s... Are multiple ways to prosecute a claim under California Labor Code §2802 can bring individual. Rate may not always be viewed as reasonable, however be different for others pay interest at rate! Necessary to do the job reasonable ” under the circumstances employer chooses to link expense reimbursement law does set! Claim, California employees for reasonable and mandatory business expenses as reasonable, however law experience. For validation purposes and should be left unchanged rather than grounds for refusing pay... Compensation, the DLSE has issued approximately 6 opinion letters regarding California ’ s expense reimbursement policies should be.!