Employers do not need to provide reimbursement for expenses incurred by independent contractors. Sec. CA Labor Code § 2802 (2017) (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 … The purpose of this statute is "to prevent employers from passing their operating expenses on … Labor Code Section 2802 Requires Employers To Indemnify Employees Labor Code section 2802 requires an employer to “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....” California Labor Code Section 2802 is designed to protect workers from shouldering the costs of expenses incurred during the course of their job. Copyright © 2020, Thomson Reuters. Internet Explorer 11 is no longer supported. 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 “threshold question” presented on appeal as follows: FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Code § 2802(a). By Terry O'Connor Labor Code § 2802 requires California employers to reimburse employees for all necessary expenditures incurred in the performance of their duties. Section 98 Qualifiying Expenses. Are We Opening a Pandora's Box in Criticizing Law Firms Challenging the 2020 Election? Necessary expenditures or losses include all reasonable costs. This rule, embodied in California Labor Code Section 2802, prohibits employers from shifting their costs of doing business onto the backs of employees. Labor Code Section 2802 Travel Expense Reimbursements. In addition, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=2802.­ In California, an employee is entitled to be reimbursed by his or her employer “for all the necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties…”. Google Chrome, Doesn't the IRS mileage rate comply with CA Labor Code 2802(a)? entre­pre­neurship, we’re lowering the cost of legal services and Read this complete California Code, Labor Code - LAB § 2802 on Westlaw FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system . (last ac­cessed Jun. 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 … Amounts recovered pursuant to this section shall be paid to the affected employee. The general reimbursement statute of the California Labor Code is Section 2802. Is a company obliged to pay for the costs incurred in connection with the use of a personal device for work? California Labor Code § 2802. Begin typing to search, use arrow keys to navigate, use enter to select. CA 2802. Labor Code Section 2802. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. . The California Labor Code – and, consequently, Section 2802 – only … For more detailed codes research information, including annotations and citations, please visit Westlaw. In general, employers must reimburse the cost of uniforms, travel expenses, tools and equipment required for the job. The procedures for issuing, contesting, and enforcing judgments for citations or civil penalties issued by the commissioner shall be the same as those set forth in 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. California Labor Code section 2802 has been around for a long time (since 1937, to be exact). For more detailed codes research information, including annotations and citations, please visit Westlaw . Sections 13700 through 13706. California’s Labor Code Section 2802 normally requires employers to reimburse employees for “reasonable” and “necessary” expenses incurred while performing their job duties. The code ensures that “An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of … increasing citizen access. Section 1197.1 Do I have to pay for a work uniform or buy my store’s clothes in California? California Labor Code section 2802 requires employers to indemnify employees for all "necessary expenditures" incurred in carrying out their duties. Employers sometimes focus on federal tax-related rules and impose “per diem” expense limits set by the Internal Revenue Service. (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. Id. For example, California Labor Code Section 2802 imposes broad obligations on employers to cover their employees business expenses, which could include at least part of the costs of a wireless voice and data plan if the employee is permitted or required to use a personal device for work. 6, 2016). California Labor Code section 2802 requires employers to reimburse employees, “for all necessary expenditures or losses incurred by the employee” while completing work duties. Original Source: (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. Labor Code 2802. Did you know that California Labor Code Section 2802 requires employers to reimburse employees for any necessary expenses the employees incur while doing their jobs? If you are a bona fide employee in California and have to pay costs out of your own pocket in order to perform your essential job duties, California Labor Code 2802 is designed to protect you. Employers that do not closely abided by this law suffer the consequences. Reimbursement of Employee Expenses. California Labor Code § 2802. ( Pdf) ( Doc) While this section does not specifically require employers to defend employees sued by third parties for conduct within the scope of employment, an employee's legal costs in defending such an action may be considered necessary under section 2802… California Labor Code § 2802: Employers’ Duty to Reimburse. § 2802, (d) In addition to recovery of penalties under this section in a court action or proceedings pursuant to Necessary expenditures or losses include all reasonable costs. The California Court of Appeal agreed there were violations and held (which means, it’s now the law): “We hold that when employees must use their personal cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. Whether reimbursing with the IRS standard rate complies with the California labor code depends on a number of factors. We will always provide free access to the current law. (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 most important factor is the miles driven by an employee. FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system. Mileage reimbursement rates do not necessarily have to be set at the IRS rate, but use caution. for non-profit, educational, and government users. (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. It depends on state law. The … Interest shall accrue from the date on which the employee incurred the necessary expenditure or loss. division 4.5. workers' compensation and insurance: state employees not otherwise covered [6100 - 6149] Necessary expenditures include any attorney fees or costs incurred by employees to recoup … When working from home, if not normally part of the job, certain expenditures may be entitled to re-imbursement by the employer. California Labor Code § 2802: Employers’ Duty to Reimburse California Labor Code section 2802 requires employers to reimburse employees, “for all necessary expenditures or losses incurred by the employee” while completing work duties. California Employment law requires employers to reimburse employees for all “necessary” expenses they incur while performing their jobs. All rights reserved. California law requires 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.” Cal. Under Section 2802, you are not only entitled to reimbursement of all “necessary” expenses you have incurred in performing your job, you are also entitled to recover the fees an attorney may charge to recover those expenses from your employer in a lawsuit. We recommend using California Labor Code Section 2802. This law states that employers should reimburse employees for each and every expense that they incur throughout the course of doing business. Title 8 of the California Code of Regulations. Location:https://california.public.law/codes/ca_lab_code_section_2802. In addition to paying for travel time, under California Labor Code section 2802, employers are responsible for paying employees’ “necessary” business expenses, including travel-related expenses. 2802. Through social That includes expenses you might incur while working from home. Microsoft Edge. FCC Again Rejects Net Neutrality Even as Controversy Reignites. California Labor Code Section 2802. They couldn’t —their requirements were a violation of California labor law, section 2802. He alleged causes of action for violation of Labor Code section 2802; unfair business practices under Business and Professions … Areas employers should review as part of their yearly audit – part two , the commissioner may issue a citation against an employer or other person acting on behalf of the employer who violates reimbursement obligations for an amount determined to be due to an employee under this section. (d) In addition to recovery of penalties under this section in a court action or proceedings pursuant to, Read this complete California Code, Labor Code - LAB § 2802 on Westlaw, industry-leading online legal research system, Amazon Alleged to Spy on Its Workers Even More Than Its Consumers, Betting Money Is Now on Supreme Court Keeping ACA Largely Intact. The law is intended to prevent employers from passing on their operating expenses to their employees. we provide special support Firefox, or Who is submitting the receipt? Lab. Expense reimbursement is likely to come under additional scrutiny in the coming years due to a recent decision from a California … In fact, employees throughout California may be owed significant compensation for basic work-from-home expenses. If your work requires you … Join thousands of people who receive monthly site updates. 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