A policy which prescribes the use of authorized forms submitted within a designated time period will ensure that reimbursement requests are timely for budgeting, billing and tax purposes and ensure that all employees are treated consistently. “The Court concludes that a fair interpretation of [Labor Code] §§ 2802 and 2804 which produces “practical and workable results,” consistent with the public policy underlying those sections, focuses not on whether an employee makes a request for reimbursement but rather on whether the employer either knows or has reason to know that the employee has incurred a reimbursable expense. Under California labor law, employers must reimburse employees the entire expense of using … Necessary expenditures include any attorney fees or costs incurred by employees to recoup expenses from their employer. When does the required use of cell phones for work trigger the obligation to reimburse an employee for such use? If an employer fails to … CA Labor Code 2802 (a) Self Audit California has the strictest business reimbursement labor code in the country. Costs of doing business in California. California courts have adjudicated several reimbursement claims. Employees who are required to transport tools and equipment necessary for the operation may be entitled to additional mileage reimbursement. Another section covers employer-required uniforms. DLSE has scheduled one public hearing on this proposed adtion: Please note that public comment will begin promptly at 10:00 a.m. and will conclude at 12 noon or when the last speaker has finished his or her presentation, whichever occurs last. The policy should also be featured in any employee manual or set of rules. The employer is also required to pay interest at a rate of 10% per year on any unreimursed expenses incurred by the employee. To clarify this indemnification obligation under section 2802, the California Division of Labor Standards Enforcement has proposed new travel and expense regulations. If you have employees receiving a car allowance or even a mileage reimbursement you could be exposed. The new Illinois law mirrors key language in California Labor Code Section 2802, California's expense reimbursement law. Division of Labor Standards Enforcement Such equipment is mandated by OSHA. DLSE requests, but does not require, that persons who make oral comments at the hearing also submit a written copy of their testimony at the hearing. Why $500/month runs afoul of California Labor Code 2802 (a) If you have employees in California, precede with extreme caution, especially if paying a flat, taxable car allowance. Labor Code § 2802 requires California employers to reimburse employees for all necessary expenditures incurred in the performance of their duties. California Labor Code section 2802 requires employers to indemnify their workers for expenses they necessarily incur in their duties. Gattuso v. Section 2802 of the California Labor Code requires employers to reimburse their employees for the reasonable and "necessary" expenses they incur in direct consequence of discharging their job duties. Who is submitting the receipt? The Year in Review LEGISLATIVE INACTION: It was not the best of times nor the worst of times, Tractor-Mounted Personnel Platforms Update, Collections, PACA Support, Produce Price Index, Corporate, Retirement and Individual Investments. Ensuring employee awareness of a reimbursement policy is a vital step in preventing class action claims. California Labor Code Section 2802 provides as follows: (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 … Fax: (916) 322-1267, (Elevator, Ride & Tramway, Pressure Vessel), Permits, Registrations, Certifications, & Licenses, Worker Safety & Health in Wildfire Regions, Electronic Adjudication Management System, Commission on Health and Safety and Workers' Compensation (CHSWC), Locations, Contacts, and Hours of Operation, Licensing, registrations, certifications & permits. Finally, the forms should allow for reimbursement of other necessary expenses such as cell phone use, special gear, supplies or uniforms. 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