No Exceptions: Employers Must Always Reasonably Reimburse Employees’ On-the-Job Use of Personal Cell Phones (California) Section 2802 of the California Labor Code requires employers to reimburse their employees for any “necessary expenditures or losses” that … Employer and Employee [2750 - 2930] ( Chapter 2 enacted by Stats. Content . We represent clients in all industries, but have particular experience in retail, hospitality, financial, energy and health care. B247160, filed 8/12/2014), the California Court of Appeal, Second Appellate District, unequivocally held that under California Labor Code section 2802, an employer must always reimburse an employee for the reasonable expense of mandatory use of a personal cell phone. Under section 2802 of the California Labor Code, “[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.” Cal. Code Section Code Section. California Labor Code § 2802. Case results depend upon a variety of factors unique to each case. [R]eimbursement is always required. Therefore, regardless of whether an employee has a limited or unlimited cell phone plan, the employer’s obligation is the same: “The reimbursement owed is a reasonable percentage of [the employees’] cell phone bills.” Employers have a duty to determine what that reasonable percentage is, and to reimburse their employees accordingly. Required cell phone use has also become more common. The California Labor Code requires employers to reimburse employees for certain expenses, but it’s not always clear which expenses should be reimbursed by the employer, and which expenses should be borne by employees. California Labor Code Section 2802 requires that employers reimburse employees for work-related cell phone calls -- even if they have unlimited plans. 1937, Ch. [1] But what if an employee’s work-related activities do not actually generate any expense in addition to that which the employee would have normally incurred otherwise? For instance, police officers have been required to reimburse their employers for the cost of peace officer training mandated by law. The new Illinois law mirrors key language in California Labor Code Section 2802, California's expense reimbursement law. Read this complete California Code, Labor Code - LAB § 2803 on Westlaw FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system . California Labor Code Section 2802 requires employers to reimburse California employees for “all necessary business expenditures or losses incurred … California Labor Code Section 2802 states an employer shall indemnify his/her employee for all necessary expenditures or losses incurred by the employee in the direct consequence of the discharge of his/her duties. California Labor Code section 2802 requires employers to reimburse employees, “for all necessary expenditures or losses incurred by the employee” while completing work duties. 2. Code: Article: ... Labor Code - LAB. DIVISION 3. Expenses incurred in connection with training or licenses that are required by law may be passed on to employee. Id. Reimbursement of Employee Expenses California’s Labor Code Section 2802 normally requires employers to reimburse employees for “reasonable” and “necessary” expenses incurred while performing their job duties. Labor Code Section 2802. To learn more, view our Cookies Policy. Case results do not guarantee or predict a similar result in any future case. March 2015, Volume 29, No. This website uses cookies to collect certain information about your browsing session. The California Labor Code – and, consequently, Section 2802 – only … And now that many employees are using their home internet, the business portion of their internet bill is reimbursable, even if they would have had a home internet plan before. reimbursement for easily overlooked expenses, including cell phone expenses, home office expenses, car allowances, and mileage reimbursements that are lower than the IRS rate. 90. ) It does not specify what amounts are specifically necessary. Inside the Law Review; New Law Targets Sexual Harassment in California Agriculture; McLe Self-Study: When Remote-Work Expenses Must Be Reimbursed Under Labor Code Section 2802; New Law Targets Sexual Harassment in California Agriculture; Cases Pending Before the California Supreme Court; Public Sector Case Notes; From the … The plaintiff in Cochran filed a class action on behalf of customer service managers employed by Schwan’s, seeking reimbursement under Labor Code section 2802 for expenses pertaining to the work-related use of their personal cell phones. To prevail on a failure to reimburse claim, California employees … Thus, the court held that to be in compliance with Labor Code section 2802, “the employer must pay some reasonable percentage of the employee’s cell phone bill” if the employee uses a personal cell phone for work purposes. “If an employee is required to make work-related calls on a personal cell phone, then he or she is incurring an expense for purposes of section 2802 . . We work with government agencies such as EEOC, OSHA and the OFCCP, and, where our clients already have represented employees, labor unions, to negotiate beneficial outcomes. California’s Labor Code Section 2802 normally requires employers to reimburse employees for “reasonable” and “necessary” expenses incurred while performing their job duties. For instance, if you bus tables in a restaurant, you may be told to wear a white shirt, dark pants, and black slip-resistant shoes. The court held that Labor Code Section 2802 requires an employer to reimburse an employee who uses his or her personal cell phone for work-related calls. The trial court denied Cochran’s motion for class certification because he failed to demonstrate commonality and superiority. Our labor and employment team has been active for over 70 years representing employers in all matters related to the employer/employee relationship. The court granted summary judgment in favor of the employer, because, under the facts of that particular case, the employer did not know or have reason to know the employee incurred those expenses. Under California Labor Code section 2802, an employer is required 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.” This includes reimbursement for mileage (if the employee is required to drive for work), gas, cell phone bills, and believe it or not, lawsuits. California Labor Code § 2802: Employers’ Duty to Reimburse. ABM Industries, a janitorial service provider, recently agreed to a $5.4 million dollar proposed settlement in Marley Castro, et al. That includes expenses you might incur while working from home. By Anthony Zaller on March 6, 2015. 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.” (Cochran v. Schwan's Home Services, Inc. (2014) 228 Cal. Under California Labor Code Section 2802 and court decisions in Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal.4th 554 (2007) and Cochran v. Schwan’s Home Service, Inc., 228 Cal.App.4th 1137 (2014), employers are required to reimburse employees for all “necessary” and “reasonable” expenses. Section 2802 liberally applies to many expenses that employees may be required to incur to perform their jobs, including vehicle expenses, travel expenses, and cell phone and internet plans. Cochran illustrates the trend of California courts in broadly applying Labor Code section 2802. Employers do not need to provide reimbursement for expenses incurred by independent contractors. 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. Reimbursement of employee cell phone expenses is governed by California Labor Code Section 2802, which provides: 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 . v. ABM Industries, Inc., a class action involving a California class of over 3,000 cleaning employees who claim that they were not reimbursed under Labor Code section 2802 for the expense of required use of their personal cellphones. The court held that the requirement even extends to an employee who has a cellphone plan with unlimited minutes as otherwise the employer would receive a windfall because it would be passing on its operating expenses on to the employee. The law is intended to prevent employers from passing on their operating expenses to their employees. Take, for example, a sales associate who pulls out her cell phone on the sales floor to look up information for a customer because it is more convenient than using the employer’s computers on the sales floor. Obligations of Employer [2800 - 2810.7] ( Article 2 enacted by Stats. Toggle navigation. 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.”, Many jobs have general dress codes that are not quite uniforms. ABM Industries, a janitorial service provider, recently agreed to a $5.4 million dollar proposed settlement in Marley Castro, et al. 90. ) . Under California Labor Code Section 2802 and court decisions in Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal.4th 554 (2007) and Cochran v. Schwan’s Home Service, Inc., 228 Cal.App.4th 1137 (2014), employers are required to reimburse employees for all “necessary” and “reasonable” expenses. In other words, the trial court interpreted Labor Code § 2802 to require that the employee show that she incurred some marginal cost as a result of the employer’s remote work requirement (i.e. Unless otherwise noted, attorneys not certified by the Texas Board of Legal Specialization. The Second District Court of Appeal held: “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.” The appellate court observed that the purpose of section 2802 is “to prevent employers from passing their operating expenses on to their employers.”[3] Therefore, the issues raised by the trial court—the type of service plan the employee has, who pays for the plan, and whether the employee changed plans because of his job—are irrelevant. v. ABM Industries, Inc., a class action involving a California class of over 3,000 cleaning employees who claim that they were not reimbursed under Labor Code section 2802 for the expense of required use of their personal cellphones. By collecting this information, we learn how to best tailor this site to our visitors. EMPLOYMENT RELATIONS [2700 - 3100] ( Division 3 enacted by Stats. No. The court stated that section 2802 requires that the employer should pay some “reasonable percentage” of the employees’ cell phone plans when the cell phone is required for work. In one California case, an employee claimed that he frequently ran work-related errands in his car, but he was not reimbursed for his mileage. Schwan’s Home Service, Inc. (2014) 228 Cal.App.4th 1137, 1140: “when employees must use their cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. California Labor Code Section 2802 states an employer shall indemnify his/her employee for all necessary expenditures or losses incurred by the employee in the direct consequence of the discharge of his/her duties. 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 direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer…." Among the items that may require reimbursement in California are office supplies, uniform costs, travel expenses, and mandatory … Thus, the first step of any Section 2802 analysis is to ask who is submitting the request. The California Labor Code – and, consequently, Section 2802 – only applies to employees. Licensure expenses are treated the same way. However, in an unambiguous opinion issued on Tuesday, August 12, the Second District Court of Appeal held that employers must reimburse all the work-related personal cell phone use of their employees, regardless of the employees’ individual arrangements vis-à-vis the selection, terms, or payment of personal cell phone plans. Employers should take adequate steps to accurately ascertain what level of reimbursement is reasonable for their employees. Labor Code § 2802 Reimbursement Claim Elements. The law is intended to prevent employers from passing on their operating expenses to their employees. Necessary expenditures or losses include all reasonable costs. Here’s a list of Five Things to Remember About Employee Reimbursements to help California employers navigate this area of the law. ARTICLE 2. … The Court held that “when employees use their personal cellular phones for work-related calls,” California law (i.e., Labor Code Section 2802) “requires an employer to reimburse them.” For instance, in Townley v. BJ’s Restaurants, Inc., a restaurant required its employees to wear black, slip-resistant shoes, but the restaurant did not specify a brand, style, or design, and the employees could wear the shoes outside of work. App. Copyright 2020 | Sutton Hague Law Corporation | Site designed by Ball Design | ADVERTISEMENT. California Labor Code section 2802 requires an employer to reimburse its employees for expenses they necessarily incur in the discharge of their duties. 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? 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 . she purchased more minutes for her cell phone) before the employer would be liable under the statute. Questions of necessity are common around the use of cell phones and other technology in the workplace. Refreshed: 2018-05-15 Labor Code Section 2802 Requires Employers To Indemnify Employees. Although the Cochrancourt only considered phone calls made on personal cell phones, employer’s increasing reliance on smart phone’s sophisticated data-consuming capabilities, such as mandating the use of employer applications, are also covered under Labor Code section 2802. Employees must have cell phones with data plans, home internet access and a laptop or similar device in order to meet these demands. Questions of necessity are common around the use of cell phones and other technology in the workplace. 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Labor & Emp't Rev. Otherwise, the employer would receive a windfall because it would be passing its operating expenses on to the employee.”. This article addresses when and to what extent Labor Code § 2802 requires that employees be reimbursed for these sorts of remote-work expenses. For more detailed codes research information, including annotations and citations, please visit Westlaw . . Thats why many forward-thinking companies are now adopting bring-your-own-device (BYOD) policies that allow employees to work on their personal laptops, tablets and smartphones instead of on company-issued equipment. Section 2802 of the California Labor Code requires employers to reimburse their employees for any “necessary expenditures or losses” that they incur as a direct result of doing their job. A three-year statute of the phone bill connection with training or licenses that are required by law may passed. Depend upon a variety of factors unique to each case: article: Labor. 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