California unreimbursed expenses lawyer

When employees spend their own money to cover work expenses and aren’t properly reimbursed, it can cause serious hardship. But even when employees have enough money to cover those expenses, they have been wrongfully deprived of resources, and they deserve reimbursement.

Employers who fail to reimburse employees for business expenses in a timely manner are violating the law and should be held accountable. But this can be difficult to do without the assistance of a California unreimbursed expenses lawyer who understands the most effective methods of enforcing employment laws in California.

At Justice Law Corporation, our legal team focuses solely on obtaining fair compensation for employees who have been deprived of amounts they should have received from employers or who have been subjected to illegal discrimination in the workplace. Our dedication to workers’ rights enables us to focus on the issues with precision and to understand the nuances of legal interpretation, thereby achieving the most effective results for our clients.  

If you have not been appropriately reimbursed for business expenses, we can work with you to recover the full amounts owed, including interest and penalties.

Your Employer’s Obligation

If you are self-employed, you are in charge of your schedule and your workload, and you are expected to cover the cost of your own expenses, which you can deduct on your taxes. But when you are an employee, your working conditions are controlled by your employer, even if you work from home. Your employer’s control over the terms of your work obligates your employer to cover the expenses necessary to conduct business. Those expenses could include transportation, supplies, training, and office costs.

Employers often refuse to either pay for necessary costs up front or reimburse them later. Sometimes, employers will wrongfully classify an employee as an independent contractor, and that has a host of legal consequences because, in doing so, the employer unlawfully shifts a host of costs onto the shoulders of workers and illegally avoids following wage and hour laws. If you’re not sure whether you have been misclassified, we invite you to schedule a consultation with us so we can review the details of your job situation and determine whether you may be eligible for various remedies.

Under Section 2802 of the California Labor Code, employers are required to “indemnify” or compensate employees for “all necessary expenditures or losses incurred” when the expenses or losses are the direct result of fulfilling job duties or when the employee is acting on the employer’s instructions. Incidentally, this law specifies that reasonable expenditures include any attorney’s fees the employee incurs when enforcing their right to compensation.

Examples of Business Expenses That Should Be Reimbursed in California

There is a wide variety of different types of expenses and losses that employers should be paying for. It is important to remember that the law creates the obligation to reimburse, regardless of company policies or whether an employee has asked for reimbursement. An employer can establish written policies that specify that employees will not be reimbursed for certain expenses, but the employer cannot refuse to reimburse “necessary and reasonable” expenses. If the employer does not indemnify as required by law, they can be held liable.

Home Office Expenses

The pandemic years ago accelerated a trend that many employers have continued to embrace for the cost savings it offers. Instead of paying for office space, employers now have their employees complete tasks from home. Employers are then saved a number of expenses, including office rent, maintenance, and utilities. However, those expenses do not simply go away. Instead, they are shifted onto the employees. For that reason, employers may be required to reimburse employees for certain expenses related to working from home rather than an employer-provided office.

These expenses might include a desk, a computer, phone equipment, internet service, and other equipment needed to perform job duties. In addition, the employer may be required to reimburse the employee for some of the overhead costs of the home office, including a portion of rent or mortgage payments and utilities.

Travel Expenses

When overnight travel is required by an employer, the employer must cover the necessary expenses, including hotel or other lodging, reasonable meals, and transportation. If the travel is allowed but not required by the employer, such as if an employee asked to attend a conference, the employer might have set a policy regarding reimbursement, and that policy would control the employee’s right to compensation. 

When travel is not required, it may not be considered necessary under the law, but a California unreimbursed expenses lawyer could review the specific details to determine whether it should be covered as part of the employer’s obligations.

In addition to reimbursing travel expenses, unless an employee is considered exempt, the employer should also provide compensation for travel time necessary for the trip, including time spent in transportation. However, the employer does not need to compensate the employee for time spent sleeping, eating, or sightseeing.

Education and Training

When an employer requires particular training or additional education, the employer should reimburse the necessary costs associated with that training, including fees, educational materials, and certification fees. If an employee engages in training or education that furthers their career but is not required, then the employer may establish their own policies regarding reimbursement.

Supplies and Tools

In many cases, employers should reimburse employees for supplies and tools they purchase for on-the-job use. This could include uniforms, safety glasses, boots, and office equipment. Certain employees who work in trades that require hand tools do not have to be reimbursed for the cost of their tools.

FAQs About Unreimbursed Expenses in California

Employees are often unsure when they are entitled to reimbursement for expenses and what to do if an employer refuses to pay. An experienced California unreimbursed expenses lawyer can explain the options available to recover fair compensation for expenses and losses and help you pursue the process that makes the most sense in your situation.

We receive many questions on reimbursement obligations, and we can only provide specific answers when we know the particular facts involved. If you contact us for a free consultation, we can explain how the law applies to your circumstances. For general information, here are some broad answers to questions we frequently receive.

Does My Employer Have to Pay for My Cell Phone?

The rules regarding cell phones can be complex because these devices are frequently used for both business and personal tasks. Generally, courts have held that employers should provide reimbursement for a reasonable percentage of your cell phone costs, which could include repairs as well as service fees. The obligation to cover a portion of cell phone costs exists even if your business use of your phone does not cost you extra, such as if you have a plan that provides unlimited minutes at the same rate. If the employer provides a business phone, however, the employer may not have an obligation to pay for any costs associated with the use of a personal phone, even if the employee uses the personal phone for business purposes.  

Is My Employer Required to Reimburse Me When I Use My Car for Business?

When you use your car to travel for company business or to fulfill other business purposes, the employer generally has an obligation to provide reimbursement. This could be reimbursement for expenses directly incurred, such as fuel, insurance, maintenance, and registration, or it could be reimbursement calculated on a per-mile basis. The employer can use the IRS’ mileage rate or another rate, so long as it provides fair compensation. Additionally, employers can provide reimbursement in the form of a flat fee, paid weekly or monthly, for the use of the employee’s vehicle, so long as the fee provides adequate reimbursement.

Does My Employer Have to Pay for My Expenses to Commute to Work?

While employers are required to pay some local travel expenses when a particular form of transportation is required, as a general rule, regular commuting expenses are the responsibility of the employee. This includes fees for parking, mileage, public transportation, and other costs.

What if My Car Gets Damaged While I’m Working?

The employer’s obligations will vary according to the circumstances. If you are driving for work purposes and get involved in a collision, the employer is generally liable for the results, including damage to your vehicle and possibly damage to other vehicles involved in the accident. If your car is damaged while you’re on your way to or from work (i.e., commuting), then the employer is generally not required to provide reimbursement for your losses. If your vehicle is damaged while parked on company property during the workday, your employer could be liable under the theory of premises liability or other legal doctrines. It is necessary to have an attorney review all the details carefully before determining an employer’s liability for the damage.

What Should I Do If I Have Not Been Properly Reimbursed for Business Expenses in California?

There are different steps you can take to address the situation if an employer has failed to provide proper reimbursement for expenses or losses you incurred while serving your employer. A California unreimbursed expenses lawyer could assist with all steps in the process, whether that involves negotiation directly with your employer, filing an administrative complaint, or pursuing litigation. Often, once an employer realizes that an experienced employment attorney is involved in the case, they will take the matter seriously, even if they had previously ignored complaints.

Get the Amounts You’re Owed for Business Expenses

At Justice Law Corporation, we know that employers often fail to cover costs employees incur in a variety of situations and for numerous reasons. Sometimes they don’t understand the legal requirements. But much of the time, employers try to take advantage of employees to save on their bottom line and increase profits.

Our team works to hold companies accountable and ensure they fulfill their obligations under California law. We are often able to recover substantial compensation for employees, including interest on past amounts and penalties. When company policies affect numerous employees, sometimes a California unreimbursed expenses lawyer can address the issues through a class action lawsuit. The employee who represents the others in the class often receives additional compensation for their service.To discuss the possibilities in your situation and learn what you may be eligible to receive, we invite you to schedule a free consultation with our firm. Just call us at 818-230-7502 or contact us online to get started.