Money Money Doesn’t Grow on Trees – Reimbursable Expenses for California Employees
California labor code section 2802 requires that all employment related expenses be covered by the employer. This means that any tools, equipment, supplies and uniforms that the employee purchases which are necessary in order complete their work must be paid for by the employer.
Labor Code 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.
(b) All awards made by a court or by the Division of Labor
Standards Enforcement for reimbursement of necessary expenditures
under this section shall carry interest at the same rate as judgments
in civil actions. Interest shall accrue from the date on which the
employee incurred the necessary expenditure or loss.
(c) For purposes of this section, the term “necessary expenditures
or losses” shall include all reasonable costs, including, but not
limited to, attorney’s fees incurred by the employee enforcing the
rights granted by this section.
The most commonly overlooked expense is mileage. If your employer requires you to use your own vehicle for company uses they should be reimbursing you for those miles. Currently, the IRS recommends a rate of .55 cents per mile. Keep in mind this is a guideline and if your employer is not reimbursing the entire .55 cents per mile you may be able to collect the difference with the help of an employment attorney or with the help of a tax professional during tax time.
Be wary of an employer that tells you it is part of your job, and your regular pay covers the expenses, or if an employer makes you feel like it is expected now that you are a manager or any other job title. You may be told it’s not very far so you should just be a team player. However, 5 miles every single day to go to the bank or to another company location can add up quickly.
Another reimbursable expense that is often done incorrectly is for uniforms. The company should provide to you any special items that they require. If these items have any of the following characteristics it’s likely that you should be reimbursed if you have paid out of your own pocket:
• If you are required to buy the item directly from your employer.
• If the item must be a specific brand name or have a company logo on it.
• If the item is a specialized garment designed specifically for your industry, ie. bullet proof vest
Labor law is complex; if you have any questions regarding your employment it is recommended that you contact UELG today. We can help you understand your rights, and in many cases will review your situation without charge.
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