Source: https://www.turleylawfirm.com/blog/what-is-california-law-on-business-expenses-reimbursement-for-cell-phones-computers-mileage-.cfm
Timestamp: 2019-04-25 13:50:08+00:00

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What is California law on Business Expenses Reimbursement for cell phones, computers, mileage? | The Turley Law Firm P.C.
What if the company doesn't reimburse me for business expenses?
What can I collect under California Law?
If your employer fails to reimburse you, your employer may be held responsible for the your out-of-pocket costs plus interest from the date your incurred the expense as well as the your attorneys fees and costs to collect the unreimbursed expenses.
But wait, there’s more. Failure to reimburse can also give rise to paycheck stub violations and waiting time penalties. Be sure to check out those sections to see how this call all really add up.
What is the law for business reimbursement for cell phones for salary and commission employees, under California law?
With salary and commission employees, employers can satisfy their obligation to reimburse for cell phones in the same way as for hourly employees. But in addition an employer can satisfy its statutory business expense reimbursement obligation under Lab. Code, § 2802, by increasing your base salary or commission rate.
However, in accordance with Lab. Code Section 200(a and 226(a), your employer is required to establish some means to identify the portion of overall compensation that is intended as expense reimbursement. Moreover, Lab. Code Section 2804, requires that the amounts that are identified must be sufficient to fully reimburse employees for all expenses actually and necessarily incurred. Gattuso v. Harte-Hanks Shoppers, Inc. 42 Cal. 4th 554, 555 (2015).
Am I supposed to be reimbursed under California wage law if I have to use a computer at my house?
Pursuant to California Labor Code Section 2802, California employers are required to reimburse their employees for all "necessary expenditures... incurred by the employee in direct consequence of the discharge of his or her duties..." So if you use you home computer for company purposes, then your employer must reimburse you for this expense. This is whether you are hourly employee, commissioned sales or a salary employee.
How about for home internet use...am I supposed to be reimbursed by the company?
This also includes Internet access. You must be remembered for all reasonable business expenses.
What is California wage law for commissioned salespeople for the reimbursement of business expenses?
The rule in California is that if you incur necessary business expenses, as part of your duties, then you employer is responsible for providing reimbursement of those expenses.
If the company charges me for breakage and shortages - is this legal under California law?
California law recognizes how very important it is for workers to receive their wages. Because of this, the California Wage Orders generally prohibit companies from taking deductions from your wages for breakage and shortage. Under California law, cash shortage, breakage, loss of equipment, cash being short, etc. is not your fault. These expenses must be borne by the company (read: you employer) - not you.
It is illegal for the company to have you pay for breakage or shortages. It is illegal for you to have to make up lost cash and the like.
The one exception to this rule if the cash shortage or breakage was caused by you're being dishonest, a willful act or gross negligence. But the company is going to need convincing evidence of this. Not speculation.
You being "short" or the fact that equipment is missing or broken is never enough for the company to charge you for it.
But, the company can, possibly, discipline you or even fire you.
What happens if my employer fails to reimburse me for business expenses?
If your employer fails to reimburse you for business expenses, your employer may be held responsible for your out-of-pocket costs. In addition, your employer is also responsible for interest from the date you incurred the expense as well as your attorneys fees and costs to collect the unreimbursed expenses.
Do I have to be reimbursed for uniforms under California wage law?
Most Wage Orders provide that, "when uniforms are required by the employer to be worn by the employee as a condition of employment, such uniforms shall be provided and maintained by the employer. The term "uniform" includes wearing apparel and accessories of distinctive design or color."
It is also illegal, in most occupations, for an employer to deduct the cost of a uniform or tools (exceptions include tools or equipment used in certain trades or crafts, and implements used by barbers, hair stylists and manicurists).
Am I supposed to be reimbursed for maintaining my uniform under California law?
The short answer, is yes. Although, it seems most lawyers go about this the wrong way. First, they should almost always be talking about workers having to laundry their uniform or work garment (like an apron). Once you start talking about dry-cleaning (in most instances), then you will go down a rabbit hole where some employees will say they machine wash and some employees will say they dry-clean, etc. You don't want to or need to go there.
So, instead, I suggest you focus on the time that it takes to wash your uniform. It doesn't matter if you are also washing your own clothes at the same time. It still take time to wash your uniform. And, under the Troester v. Starbucks case - you have to be paid fo all the time that you work. Troester v. Starbucks Corp. (2018) 5 Cal.5th 829, 847.
Now, when you get this off in to being paid for all time worked, you are talking pay stub violations, waiting time penalties, etc.
What if my employer “suggests” that I need to wear clothes from the company store when I work?
It is not uncommon for retail stores to pressure employees to wear clothes from their store while working in the store. Under California law, this is illegal.
California Labor Code Section 450 prohibits any employer from compelling or coercing any employee . . . to patronize his or her employer, or any other person, in the purchase of any thing of value.
A Reported Case Study - Abercrombie & Fitch Co.
First, here I am simply reporting to you on an actual case. In many of my case studies, you will notice that I change the names, etc. in order to protect the identify of the employer and/or my client(s). Both my publisher and my wife appreciate it when I do this. After all, I don’t want to be sued by some company that takes offense to my characterization of the evidence. This is even when I know I am spot-on with my observations and my analysis.
Here, is a little different. When I am referring to a reported Order or decision, it is not me characterizing the evidence, Instead it is the tries of fact - oftentimes the trial court or court of appeal that is characterizing the evidence. In these instances, I am merely reporting on what the court found.
Abercrombie's "Look Policy" dictated what an employee may wear. Abercrombie's policy expressly stated employees were not required to buy or wear clothing from the store, but did require employees' clothes to be "similar to the brand" and "consistent with the current fashion season and colors."
Moreover, the policy prohibited employees from wearing apparel obviously labeled by a label, name, or logo of a competitor.
The court found that whether these requirements describe a uniform for the purposes of California Labor Code section 2802 presented a common question, as did the question whether Look Policy-compliant clothing is "generally useable in the occupation or profession."
In addressing predominance, the court first rejected the company’s argument that individual inquiries were necessary because employees may not have purchased clothing from defendant stores.
The court found that a ‘uniform existed and reimbursement was necessary even if employees did not purchase clothes from the Abercrombie stores; "if a required piece of clothing is of a sufficiently distinctive design or color, an employer may be required to reimburse the employee for that purchase even if the item of clothing was purchased elsewhere."
The court next rejected the company’s argument that its one-time provision of free clothes to some employees required additional individual inquiries. "While this issue of free clothes presents an interesting question, the Court concluded that it is appropriately characterized as part of the damages inquiry." After finding predominance as to both subclasses for similar reasons, the court went on to certify each class. Brown v. Abercrombie & Fitch Co., 2015 U.S. Dist. LEXIS 176214, *24 (C.D. Cal. July 16, 2015).
What do I have to prove for me to win my business reimbursement case?
What do you have to prove in order to win your 2802 failure to reimburse claim?
Under California law, 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. . . ." California Labor Code Section 2802(a).
(3) The expenditures or losses were reasonable and necessary.
Marr v. Bank of Am., No. 09-CV-05978 WHA, 2011 U.S. Dist. LEXIS 24868, 2011 WL 845914, at *1 (N.D. Cal. Mar. 8, 2011) (citing Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal.4th 554, 568, 67 Cal. Rptr. 3d 468, 169 P.3d 889 (2007)).
At lease one court has found that the employer "must either know or have reason to know that the employee has incurred [the] expense." Stuart v. RadioShack Corp., 641 F. Supp. 2d 901 (N.D. Cal. 2009) (Chen, M.J.). Marr v. Bank of Am., 2011 U.S. Dist. LEXIS 24868, *3, 2011 WL 845914. (Judge Chen, Northern District of California.
“If the California legislature had intended to insert an employer notice requirement into § 2802, it could have done so. It did not. The duty to reimburse does not need to be triggered by notice, actual or constructive. It exists so long as the uncompensated employee expenditures or losses are reasonably necessary to the work.
Espinoza v. West Coast Tomato Growers, LLC, 2016 U.S. Dist. LEXIS 113361, *12-14, 2016 WL 4468175 (Judge Whelan, Southern District of California).
Do I have to ask the company to reimburse me for my business expense in order for it to be owed to me?
To show liability under section 2802, an employee need only show that he or she was required to use a personal cell phone to make work-related calls, and he or she was not reimbursed. Cochran v. Schwan's Home Service, Inc., 228 Cal. App. 4th 1137, 1145 (2014).
It is the same for all business expenses. All you have to do is to show that you were required to make a business expense and you were not reimbursed. There is no requirement under California law that you asked to be reimbursed.
As discussed herein above, there is no requirement under California law (read: an element that you must prove in order to win your business reimbursement case) that you asked to be reimbursed for the business expense.
Mechanics and tools: Do I have to be paid at least twice the minimum wage?
Any mechanic who uses his or her own tools or equipment on the job must be paid at a rate if at least twice the minimum wage. If an employer provides all necessary equipment, he or she is also responsible for the safety and upkeep of the tools and equipment.
The company wants me to "waive" my business expense claim... is this legal under California wage and hour law?
Under California Labor Code Section 2802, you have a right to be indemnified for all your necessary business expenses. Here, indemnified means you have a right to be reimbursed for your necessary business expenses.
California Labor Code Section 2804 provides that this indemnification requirement cannot be waived by contract.
What is the time limit (statute of limitations) for bringing a business reimbursement claim - cell phone, computer, uniform, mileage claim - in California?
I suggest that you do not wait. Contact the best, honest California wage lawyer that you can find as soon as possible.
This article is not legal advice. Just because we have had great results in so many California wage case is no guarantee of any particular result in your case or any other case. Every case is different. This article is simplistic in order to achieve clarity.
If I am owed my for business expenses - cell phone, uniforms, mileage, home computer, etc. - what should I do?
My first suggestion is that you contact the best, honest, unpaid wages lawyer that you can find.
You should be trying to document everything as much as possible. With records, emails, etc.

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