California expense reimbursement law. This statute requires employers to reimburse employees for all expenditures necessarily incurred by the employee in direct discharge of duties for the employer, or in obedience to directions of the employer. Dec 7, 2023 · This case is important for all employers whose workforce suddenly began working from home as a result of the COVID-19 pandemic, and employers who continue to permit employees to work from home today. Your employer must reimburse you for “all necessary expenditures or losses” incurred by you “indirect consequence of the discharge of [your] duties” or “in obedience to [your employer’s] directions. At the same time, the employee must receive full reimbursement for expenses incurred. Feb 22, 2025 · California Labor Code Section 2802 mandates employers to reimburse employees for all necessary business expenses, and mileage reimbursement is a significant component. May 20, 2025 · Explore California remote employee laws, including wage compliance, reimbursements, workplace safety, and legal tips for employers and employees. Sep 14, 2020 · Finally, remember that California’s expense reimbursement law only applies to expenses that are “necessarily” incurred in direct consequence of the job duties or in complying with an employer’s directions. This means if you’re required to work from home, your employer doesn’t have to reimburse “optional” home office expenses. Jan 24, 2025 · Understanding California’s 2025 Cell Phone Reimbursement Law California’s 2025 cell phone reimbursement law represents a significant update to existing regulations, aiming to provide clearer guidelines and stronger protections for employees whose jobs require the use of their personal cell phones. The opinion interprets California Labor Code section 2802 and has implications beyond the pandemic. If your employer has failed to reimburse you for work-related expenses, you may be able to recover compensation by filing a lawsuit. e. 70 per mile. Those business expenses include anything you spend in the discharge of your job duties or to follow your employer’s instructions. Employers in California must reimburse workers for job-related vehicle and travel expenses under Labor Code Section 2802. Learn the process, eligibility, and the importance of documentation. Jul 19, 2023 · Sources: California Labor Code § 2802 SHRM – What are the business-related expense-reimbursement requirements under California law? California Workplace Law Blog – Reminder Regarding California Expense Reimbursement & IRS Increase of Its Mileage Rate Disclaimer: Nothing in this blog post is legal, accounting, or insurance advice. Read everything you need to know about expense reimbursement laws by state. California courts interpret these requirements strictly to protect employees and ensure fair Mar 15, 2024 · At Gruzen Moussly Law, we are committed to protecting the rights of remote workers and holding employers accountable for compliance with California’s expense reimbursement laws. *For PIT purposes only, California conforms to federal law under Section 217 of the Internal Revenue Code. Jul 18, 2024 · Explore California Labor Code Section 2802 to understand employer reimbursement responsibilities for employee expenses and ensure compliance with state regulations. Jul 24, 2025 · A recent California court ruling explicitly found that the state’s expense reimbursement laws apply to remote work costs, including cell phone expenses. Second, although expense reimbursement law varies from state to state, generally, in California employers are required to pay for “necessary” and “reasonable” expenses. The most common method for calculating this reimbursement is by using the IRS standard mileage rate, which provides a per-mile rate that factors in all these costs. Aug 17, 2021 · Get clarity on California's broad employee expense reimbursement laws. Learn how to stay compliant with employee expense reimbursement laws across the U. This means that if an employee is incurring expenses that are wholly unnecessary or unreasonably exorbitant, they need not be Jul 6, 2024 · 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. Reimbursement of Employee Expenses California's law on expense reimbursement is contained in Section 2802 of the California Labor Code. Oct 1, 2024 · Now, this requirement is interpreted quite broadly by the courts because California law and public policy favor protecting employees from employers passing on operating costs onto those employees. You can file a claim or sue if needed. The law mandates that employers cover necessary work-related costs, and employees have legal rights to seek damages in court for unreimbursed work-related expenses. xbe hdo xwpyw ob f4rc v7ny7 visky drf4s csy 31i