Labor Code 2802 LC, see endnote 1 above. Any amount recovered by the commissioner will be paid to the employee. 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. 3. The law is intended to prevent employers from passing on their operating expenses to their employees. California Labor Code Section 2802. If an employee’s duties require the use of the employee’s car, the employee should receive reimbursement for automobile expenses such as … While an employer has no obligation to reimburse for basic, non-uniform wardrobe items, the employer’s specific actions and expectations could give rise to a “necessary” business reimbursement. With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. She handles cases involving claims of wage and hour violations, harassment, retaliation, discrimination, breach of employment agreements, FMLA violations, and violations of California's Private Attorneys General Act (PAGA), Family Rights Act (CFRA), and Fair Employment and Housing Act (FEHA). RELIEF PROGRAMS FOR EMPLOYEES AFFECTED BY COVID-19 OR SHELTER IN PLACE In Gattuso , the California Supreme Court considered what an employer may do to satisfy its statutory reimbursement obligation under Labor Code section 2802 which requires an employer to indemnify its employees for expenses they necessarily incur in the discharge of their duties. You see cellphone bills, an Amazon receipt for a $750 printer, a receipt for a 50-inch television, and a screenshot of a Venmo request from a name you’ve never seen. }); In today’s world, the first place people go to find the services they need is the internet. The cost of the premium account would be reimbursable under Section 2802 as employers cannot pass their operating costs to their employees. This makes sense because, in most cases, the expense is incurred once or very infrequently. That said, if the employer prevents or discourages its employees from requesting reimbursements, the fact that it did not receive a reimbursement will not absolve it of its Section 2802 obligations. California Labor Code Section 2802 outlines employer responsibilities concerning business expense reimbursement. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. Employers do not need to provide reimbursement for expenses incurred by independent contractors. 4. This law is intended to prevent employers from passing their operating expenses on to their employees (Labor Code section 2802). California Labor Code section 2802 requires employers to indemnify their workers for expenses they necessarily incur in their duties. All Rights Reserved. LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. FAQ / 9. Notwithstanding that shelter-in-place restrictions have been in place in California since mid-March, it is not too late to take control of reimbursements. … A Refresher on California Reimbursement Requirements in a COVID-19 World, Part Five of the COVID-19 Roadmap Series: Ensuring a Safe Workplace - COVID-19 Screening and Testing, Part Two of the COVID-19 Roadmap Series: Creating a COVID-19 Operations Infrastructure. Is the reimbursement request necessary and reasonable? To determine whether (and what) the employer is obligated to pay, there are several factors to consider: The California Labor Code – and, consequently, Section 2802 – only applies to employees. 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 … Section 2802 (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. The Recorder. document.addEventListener('DOMContentLoaded', function() { In this first installment in a two-part series, the authors, two lawyers at Williams & Connolly, consider California's new cybersecurity statute; new rulings on key issues; and available defenses at the motion to dismiss stage in class actions stemming from the COVID-19 pandemic. The California Labor Law. Citing Section 2802, plaintiffs' attorneys have aggressively pursued claims against California employers for failure to reimburse various employee expenses, including home internet and cell phone costs. Law Offices of Gary Martin Hays & Associates 5. $("#sub1").append( pday ); If it does, it must exercise due diligence to ensure that each employee is reimbursed. Section 2802 only requires reimbursement of necessary and reasonable expenses incurred by the employee as a condition of continued employment. The best practice is to provide reimbursement within the next pay period following submission. A conservative approach is to treat the duty to reimburse as separate from any notice requirement. $("#sub2").append( pday ); 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 … To view this content, please continue to Lexis Advance®. While most employees could work from a laptop, there are certain employees who may require more. | Posted in Best Practices For California Employers, Expense Reimbursement. Subscribe Now. If an employee voluntarily enrolls in work-related classes to fill their leisure time, there is no requirement to reimburse the employee. California Labor Laws on Employee Expenses 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. Who litigates employment, commercial, and dining expenses notice to the employee quits exact. Option allows you to build your bundle and strategically select the content pertains... Insufficient to trigger a reimbursement request merely because it arrives in an unusual form reimbursable! 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