Labor Code Section 2802 Requires Employers To Indemnify Employees. Motus does not provide tax, legal, or accounting advice. As this scenario relates to reimbursement, the employer could be the enriched, and the employee impoverished. Employee desire reimbursement for his or her actual expenses. 2802. Labor Code section 2802, subdivision (a) requires: "[a]n employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in … Plaintiff alleged a violation of Labor Code section 2802, which requires an employer to reimburse employees for all necessary expenditures incurred by the employee in direct consequence of the discharge of their duties. Reimbursement for mobile employees can be tricky and ambiguous for companies across the country. What Do The Courts Say About Labor Code, Section 2802 And How California Expense Reimbursement Laws Should Be Enforced. LEXIS 120315 (C.D. California has seen the cycle of this disconnect for decades. The penalty amounts and procedures applicable to “expenses” are … Please note, use of this product requires a Motus app subscription. No contract, or regulation, shall exempt the … California Employment law requires employers to reimburse employees for all “necessary” expenses they incur while performing their jobs. California Labor Code Section 2802. 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. How to Optimize Your Investment and Cut Costs, Creating Tax Solutions Through Business Vehicle Technology: A Medical Device Company Reduced Its Fica Tax by Almost $500,000, If it doesn't load, you can fill out the form here. New Hampshire maintains labor code that states employers should reimburse employees for any expenses that are considered outside of their pre-determined expenses. or losses incurred by the employee in direct consequence of the discharge of his or. Other states, such as Louisiana, don’t have specific labor laws that directly correlate to California’s 2802. CA 2802. As Chief Legal Officer, Danielle is responsible for all Motus legal affairs and works with strategic business units to drive initiatives that bolster IRS and legal compliance for Motus clients. This section reads, in relevant part: “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.” California Labor Code § 2802. Necessary expenditures or losses include all reasonable costs. However, Labor Code section 2802 does not contain any language expressly stating that it applies to public entities, and at least two California Courts of Appeal have held that public entities are not subject to general Labor Code provisions unless expressly included. Prior to joining Motus, Danielle co-founded and served as CEO of Cadence Counsel, a company that helps law firms and companies thrive in an environment where work, as we know it, is rapidly changing. Louisiana Civil Code 2298 states that “A person who has been enriched without cause at the expense of another person is bound to compensate that person…[regulation measures] the amount of compensation due… by the extent to which one has been enriched or the other has been impoverished, whichever is less”. Id. Thus, the first step of any Section 2802 analysis is to ask who is submitting the request. Expense reimbursement is another headache. (Labor Code sections 400–410.) employee. 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. One essential thing to note? Id. For example, if an employee […] 2014), the court held that Labor Code section 2802 also applied to non-California residents that performed work in the state. Section 2802 operates to prevent an employer from passing its operating expenses to employees. This law is intended to prevent employers from passing their operating expenses on to their employees (Labor Code section 2802). And with the year coming to a close, now is a great time to review these five items: Mileage reimbursement considerations under California law, Mileage reimbursement issues under California law, Friday’s Five? Whether the employees have cell phone plans with unlimited minutes or limited minutes, the reimbursement owed is a reasonable percentage of their cell phone bills. The general reimbursement statute of the California Labor Code is Section 2802. He alleged causes of action for violation of Labor Code section 2802; unfair business practices under Business and Professions…. California’s Labor Code Section 2802 normally requires employers to reimburse employees for “reasonable” and “necessary” expenses incurred while performing their job duties. Gone are the days of hand-written paper mileage logs and time-consuming expense reports. A statutory duty generally has a three-year statute of limitations, [See CCP Sec. If you are using a screen reader and are having problems using this website, please call 855-266-3064 for assistance. The underlying assumption of Labor Code Section 2802, Cochran, and Gattuso is that an employer provides employees with the equipment and resources necessary for employees to perform their jobs. The latest litigation trends, court decisions, & issues on California Employment Law, California law generally holds that an employer may not pass the ordinary costs of doing business on to employees. Employers that do not closely abided by this law  suffer the consequences. Gattuso v. Employers that do not closely abided by this law suffer the consequences. As such, employers should be sure to implement programs to reimburse employees for such expenses as home internet, cell phone usage, printer ink, paper, and other relevant supplies. Remote-Work Expenses And Labor Code Section 2802 March 17, 2015 I recently published a short article in the California Labor & Employment Law Review that addresses an employer’s obligations to reimburse employees for expenses they incur while working remotely (i.e. Sec. 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. The term "uniform" includes wearing apparel and accessories of distinctive design and color. 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 By Anthony Zaller on December 19, 2014 Zep, Inc., 2014 U.S. Dist. The general reimbursement statute of the California Labor Code is Section 2802. She earned her J.D. VI. Still, they do have certain civil codes that seem to highlight some similarities. Labor Code section 2802 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." The analysis is very difficult, and fact…, This week, a federal court in northern California certified portions of a class action brought by Uber drivers who worked in California since 2009 (click here for the decision [PDF]). Labor Code Section 2802. 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 Labor Code Section 2802. A California Court of Appeal recently determined that Labor Code section 2802 does not require an employer to reimburse an employee for attorney’s fees incurred in the employee’s successful defense of the employer’s action against that employee. 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