Proposed Class Settlement Shows Potential Cost of Failure to Reimburse for Work-Related Personal Vehicle Use in California

Reed, Tim - 300dpi
Tim Reed

California law mandates that employers reimburse employees for work-related expenses.  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. Lab. Code § 2802(a).  Among the items that may require reimbursement in California are office supplies, uniform costs, travel expenses, and mandatory training.  In addition, an employer must reimburse its employee for a reasonable percentage of the employee’s cell phone bill where personal cell phone use is required as part of the employee’s job duties.  Employers are also required to reimburse employees for costs associated with use of a personal vehicle for work-related purpose.  The duty to reimburse for business expenses arises where an employer “know[s] or ha[s] reason to know that the employee has incurred an expense.”  Stuart v. Radioshack Corp., 641 F. Supp. 2d 901, 904 (N.D. Cal. 2009).   Continue reading