Remote work has become a staple for many employees in California, but with this shift comes questions about employer obligations—especially regarding reimbursements for work-related expenses. Under California law, employees working from home may be entitled to reimbursement for certain costs incurred while performing their duties remotely.
This article breaks down California’s remote work reimbursement laws, what employees should expect, and how to ensure you’re getting compensated fairly for work-related expenses.
California Labor Code Section 2802
California Labor Code Section 2802 is the key statute governing employer reimbursement obligations. It mandates that employers must reimburse employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of their duties.”
This includes any costs employees incur while working from home that are necessary for them to perform their job effectively. The purpose of this law is to ensure that employees are not financially burdened for expenses that directly benefit the employer.
What Expenses Are Employers Required to Reimburse?
When it comes to remote work, several expenses may fall under the umbrella of reimbursable costs. While the specifics can vary based on job roles and duties, here are common expenses that California employers may be required to reimburse.
1. Internet and Phone Bills
Partial Reimbursement: Even if employees already have home internet or cell phone plans, employers must reimburse a reasonable percentage of these costs if they are used for work purposes. Courts have ruled that employers cannot argue that no reimbursement is necessary simply because the employee already had these services.
2. Remote Office Supplies and Equipment
Necessary Supplies: Items like pens, notebooks, paper, printer ink, or any other materials needed to perform job duties should be reimbursed.
Equipment: Employers may need to reimburse for larger items like desks, chairs, monitors, or even ergonomic accessories, especially if they are necessary for an employee’s health and productivity.
3. Computer and Software Expenses
Laptops and Desktops: If employees are required to use their personal computers for work, employers may have to reimburse part or all of the cost.
Software and Subscriptions: Any required software (e.g., Zoom, Adobe, Microsoft Office) used for work must also be covered by the employer.
4. Utilities and Electricity
Partial Utility Costs: Though less common, there may be scenarios where employers are responsible for reimbursing a portion of utility bills, particularly electricity, if the employee’s home office setup significantly increases their utility costs.
5. Other Potential Reimbursements
Postage and Shipping: If employees need to mail work-related documents or materials, these costs should be reimbursed.
Work-Related Apps or Subscriptions: Any apps or services specifically required by the employer for remote work may also fall under reimbursable expenses.
Remote Work During COVID-19: Increased Reimbursement Obligations
During the COVID-19 pandemic, many companies rapidly transitioned to remote work without proper protocols in place. California courts made it clear that Labor Code Section 2802 applies regardless of whether employees voluntarily work from home or are required to.
A notable case, Cochran v. Schwan’s Home Service, Inc. (2014), established that employers must reimburse employees even if the employee does not incur additional out-of-pocket costs. For instance, if an employee uses a personal cell phone for work, the employer must still pay a reasonable portion of the phone bill, even if the employee had an unlimited plan and didn’t pay extra due to work use.
How Much Should Employers Reimburse?
One challenge with remote work reimbursements is determining the “reasonable percentage” to reimburse, especially for shared expenses like internet and phone services.
Courts generally expect employers to pay a fair share based on how much the service is used for work versus personal use.
Employers and employees can agree on a standard percentage—for example, 25% of an internet bill if the employee works from home full-time.
What Should Employees Do to Ensure Reimbursement?
If you’re working remotely and incurring work-related expenses, here are steps you can take to ensure proper reimbursement:
Keep Detailed Records: Save receipts, invoices, and bills related to any work expenses. Highlight usage that is specific to work, such as increased data usage due to video conferencing.
Communicate With Your Employer: Reach out to HR or your supervisor to clarify the company’s reimbursement policy. Many companies have specific forms or procedures for submitting expense claims.
Submit Expense Reports Regularly: Don’t wait too long to submit your expenses. Regular submissions (e.g., monthly or quarterly) ensure timely reimbursements.
Address Disputes Promptly: If your employer denies a legitimate expense claim, document the denial in writing and seek clarification. In some cases, it may be necessary to consult with an employment attorney to ensure your rights are protected.
What If My Employer Refuses to Reimburse Me?
If your employer refuses to reimburse legitimate work-related expenses, they may be violating California Labor Code Section 2802. Employees in this situation have several options:
Complain Internally (Preferably in Writing):
Before escalating the issue externally, employees should submit a formal written complaint to HR or their direct supervisor outlining the specific expenses, relevant documentation, and citing the employer’s legal obligation under Labor Code Section 2802. Having a paper trail can be critical if further action becomes necessary.File a Claim with the California Labor Commissioner’s Office:
If internal complaints do not resolve the issue, employees can file a claim with the California Labor Commissioner’s Office for unpaid reimbursements. The Labor Commissioner can investigate and hold employers accountable for failing to meet reimbursement obligations.Consult an Employment Attorney:
An experienced employment attorney can help employees explore legal action. Under Section 2802, if an employee successfully sues their employer for unpaid reimbursements, they may also be entitled to recover attorney’s fees and court costs.
Retaliation for Requesting Reimbursement Is Illegal
It’s important to know that California law prohibits employers from retaliating against employees who request reimbursement for work-related expenses.
Understanding Retaliation Under California Law
Retaliation can include any adverse employment action taken against an employee for asserting their rights, such as:
- Termination or demotion
- Reduced work hours or pay cuts
- Negative performance reviews without justification
- Harassment or increased scrutiny
- Exclusion from meetings or projects
Legal Protections for Employees
Under California Labor Code Section 1102.5 and Labor Code Section 98.6, employers are forbidden from retaliating against employees who report violations of the law, including failures to reimburse work-related expenses or who file claims with labor authorities.
- Labor Code Section 98.6 specifically protects employees from retaliation when they file complaints with the Labor Commissioner or assert their rights under the Labor Code.’
If an employer retaliates after you request reimbursement, you may be entitled to legal remedies, including:
- Reinstatement to your position if you were wrongfully terminated or demoted.
- Back pay for lost wages.
- Compensation for emotional distress.
- Attorney’s fees and legal costs.
What to Do If You Experience Retaliation
If you believe you’ve been retaliated against after requesting reimbursement:
Document Everything: Keep a record of your expense reimbursement requests, any adverse actions taken against you, and all communications with your employer.
File a Complaint: You can file a retaliation complaint with the California Labor Commissioner’s Office or the California Department of Fair Employment and Housing (DFEH).
Consult an Employment Attorney: An attorney can guide you through the legal process and help protect your rights, ensuring you receive the compensation and remedies you deserve.
Protecting Your Rights as a Remote Worker
As remote work continues to evolve, employees must be aware of their rights under California law. Whether you’re working from your kitchen table or a fully equipped home office, your employer has a legal obligation to cover necessary work-related expenses.
If you believe you haven’t been properly reimbursed or have experienced retaliation for asserting your rights, seeking legal counsel can help ensure you’re protected and fairly compensated.
Seek Legal Counsel
If your employer has failed to reimburse you for work-related expenses, or if you’ve experienced retaliation after requesting reimbursement, H&A Law Office, PC is here to help. Our experienced employment attorneys are dedicated to defending workers and ensuring they receive the compensation and legal protections they deserve.
Contact us today for a free consultation and let us help you safeguard your rights as a remote employee.
FAQs
Does my employer have to reimburse me if I volunteered to work remotely?
Yes. Under California law, it doesn’t matter whether remote work was voluntary or mandated. If you’re performing work for your employer and incurring necessary expenses, you’re entitled to reimbursement.
How much of my internet or phone bill should my employer reimburse?
There’s no fixed percentage, but employers must reimburse a reasonable portion. Courts have suggested that employers and employees agree on a fair percentage based on usage—typically ranging from 20% to 50% for full-time remote employees.
Can my employer provide a flat stipend instead of reimbursing actual expenses?
Yes, but only if the stipend fully covers the necessary work-related expenses. If the stipend is too low and doesn’t cover actual costs, employees can request additional reimbursement.
Am I entitled to reimbursement for home office furniture?
Possibly. If certain furniture, like an ergonomic chair or desk, is necessary for you to perform your duties comfortably and safely, your employer may be required to reimburse these costs.
What should I do if my employer refuses to reimburse me?
Start by filing a written complaint internally with HR or your supervisor. If the issue isn’t resolved, you can file a claim with the California Labor Commissioner’s Office or consult an employment attorney to explore legal action.
Do I need to provide receipts for all expenses?
While it’s a good idea to keep receipts, courts have ruled that reimbursement is still required even if the employee can’t produce receipts for every expense, as long as the expenses are reasonable and necessary.
Can my employer deduct reimbursement payments from my wages?
No. Reimbursement payments must be made in addition to your regular wages and cannot be deducted from your paycheck.
Am I entitled to reimbursement for increased electricity costs?
Possibly. If working from home leads to a significant increase in your utility bills, you may be entitled to partial reimbursement. However, this is often determined on a case-by-case basis.
Are independent contractors entitled to remote work reimbursements?
No. California Labor Code Section 2802 only applies to employees. Independent contractors are typically responsible for covering their own business expenses unless otherwise specified in their contracts.
This post is intended for informational purposes only and does not constitute legal advice. Laws and regulations are subject to change, and their application can vary based on specific circumstances. For personalized legal assistance, please reach out to H&A Law Office, PC.
