Reimbursable Expenses can really add up!
In California the labor law requires that employers cover the cost of doing business and that they cannot pass those costs off to their employees. However there are some instances when employees need certain tools, materials, uniform items or to use their own transportation. This is when the employer should be paying back the employee for the cost of making these purchases or using their own vehicle and gas for company use.
One of the most common mistakes employers make is asking their employees to run errands without compensating them for either the time or mileage. Say for instance you are working for a retail chain store of any kind and your inventory has just run out on certain items; you are now required to call other local stores to see if any of them have any inventory to spare. Now you must hop in your own car and drive to pick up the needed inventory.
1. Did you make sure you were still on the clock and paid for time while you did this?
2. Did you report your mileage to your manager after returning?
Both your time and your miles need to be paid to you. Currently the IRS has set a guideline of .55 cents a mile. Your employer’s pay rate should be at or close to this rate, and your drive time should be paid at your regular rate of pay.
Another common problem is uniforms. If your employer requires that you purchase anything directly through your employer there is likely a flag on the play. Having a dress code is not the same as requiring you to purchase specific brand names or buy an item with the company logo on it. Consulting a labor law attorney regarding this issue is always a good idea.
Lastly, tools and supplies are something that may or may not be reimbursable. For instance, mechanics often supply their own tools. However, the specialized equipment in the shop should be provided by the company. Also items like gloves and safety goggles are likely reimbursable expenses.
Most of these reimbursable expenses can be deducted from your taxes at the end of the year but only if your employer did not reimburse you for them. No double dipping.
Labor law is complex; if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.
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