In fact, employees throughout California may be owed significant compensation for basic work-from-home expenses. Section 1197.1 Code § 2802(a). For more detailed codes research information, including annotations and citations, please visit Westlaw . The California Court of Appeal agreed there were violations and held (which means, it’s now the law): “We hold that when employees must use their personal cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. The most important factor is the miles driven by an employee. 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 Cochran decision posed, and answered, the “threshold question” presented on appeal as follows: for non-profit, educational, and government users. Labor Code Section 2802 Travel Expense Reimbursements. § 2802, 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. (d) In addition to recovery of penalties under this section in a court action or proceedings pursuant to, Read this complete California Code, Labor Code - LAB § 2802 on Westlaw, industry-leading online legal research system, Amazon Alleged to Spy on Its Workers Even More Than Its Consumers, Betting Money Is Now on Supreme Court Keeping ACA Largely Intact. 2802. This law states that employers should reimburse employees for each and every expense that they incur throughout the course of doing business. In California, an employee is entitled to be reimbursed by his or her employer “for all the necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties…”. Employers do not need to provide reimbursement for expenses incurred by independent contractors. The California Labor Code – and, consequently, Section 2802 – only … California Labor Code Section 2802 provides as follows: (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 … That includes expenses you might incur while working from home. California Labor Code Section 2802 is designed to protect workers from shouldering the costs of expenses incurred during the course of their job. https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=2802.­ 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 . FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system. He alleged causes of action for violation of Labor Code section 2802; unfair business practices under Business and Professions … Areas employers should review as part of their yearly audit – part two Do I have to pay for a work uniform or buy my store’s clothes in California? When working from home, if not normally part of the job, certain expenditures may be entitled to re-imbursement by the employer. In addition to paying for travel time, under California Labor Code section 2802, employers are responsible for paying employees’ “necessary” business expenses, including travel-related expenses. (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. Google Chrome, Employers that do not closely abided by this law suffer the consequences. The … We recommend using 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. The purpose of this statute is "to prevent employers from passing their operating expenses on … Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. California Labor Code § 2802. This rule, embodied in California Labor Code Section 2802, prohibits employers from shifting their costs of doing business onto the backs of employees. FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Employers sometimes focus on federal tax-related rules and impose “per diem” expense limits set by the Internal Revenue Service. California Labor Code § 2802: Employers’ Duty to Reimburse. It depends on state law. Is a company obliged to pay for the costs incurred in connection with the use of a personal device for work? Internet Explorer 11 is no longer supported. Expense reimbursement is likely to come under additional scrutiny in the coming years due to a recent decision from a California … Location:https://california.public.law/codes/ca_lab_code_section_2802. Expense reimbursement is another headache. California Labor Code Section 2802. Under Section 2802, you are not only entitled to reimbursement of all “necessary” expenses you have incurred in performing your job, you are also entitled to recover the fees an attorney may charge to recover those expenses from your employer in a lawsuit. California Labor Code section 2802 has been around for a long time (since 1937, to be exact). CA Labor Code § 2802 (2017) (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 … By Terry O'Connor Labor Code § 2802 requires California employers to reimburse employees for all necessary expenditures incurred in the performance of their duties. Mileage reimbursement rates do not necessarily have to be set at the IRS rate, but use caution. Id. Join thousands of people who receive monthly site updates. Necessary expenditures or losses include all reasonable costs. Amounts recovered pursuant to this section shall be paid to the affected employee. Copyright © 2020, Thomson Reuters. Microsoft Edge. 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