Under California Labor Law, Employers are Required to Reimburse Their Workers for any Business Expenses
Under California labor law, employers are required to reimburse their workers for any business expenses they incurred, including the use of their personal vehicle or cellphone for work-related purposes. This law is designed to protect employees from bearing the burden of work-related expenses and to ensure that they are fairly compensated for their work. Failure to comply with this law may result in legal consequences, including wage and hour lawsuits. The law defines necessary expenditures or losses to include all reasonable costs, including attorney's fees if the employee needs to enforce their rights. Reimbursable expenses include driving costs, mileage reimbursement for the mileage driven, paid tolls, and other work-related expenses such as uniforms and conference fees. Employers can calculate the employee's reimbursement using one of four approved methods: reimbursing mileage driven, reimbursing actual expenses, making lump sum payments, or using the fixed and variable rat...