Q: I AM an hourly employee for a company that allows me to work from home once or twice a week. In order to do my job, I have to use a computer, fax, and telephones. My job duties also require travel several times a month and I use my own car. When I stay out of town overnight, I have additional expenses. Is it proper to ask for reimbursement for all my business-related expenses?
A: Yes, you have the right to ask to be reimbursed for work or business-related expenses.
Under California law, an employer must reimburse an employee for all necessary expenses spent as a direct consequence of the discharge of the employee’s duties for the employer. These include:
(1) transportation, living, and other travel expenses;
(2) purchasing, laundering or repairing uniforms or special clothing required by the employer;
(3) purchasing supplies, tools, materials, or equipment;
(4) “supper money” to cover the cost of supper when an employee is requested to work during the evening hours; and
(5) excess home-to-work travel expenses incurred by the employee due to extraordinary circumstances.
If the employee had to buy a computer, fax machine, cell phone, and pay for landline telephone and internet access primarily for the employer’s business, these are arguably reimbursable expenses. Also reimbursable are business-related travel expenses such as automobile expenses, reasonable mileage, and the costs of any loss or damage to an employee’s automobile that occurs while the employee is on company business. Mileage reimbursement may be calculated according to the standards used by the Internal Revenue Service. That rate for 2011-2012 is 55.5 cents per mile.
If there is no agreement to pay a reasonable mileage reimbursement, the employer may be required to reimburse the employee for the actual costs incurred in operating the vehicle in the service of the employer. Those costs would include losses due to accident or theft while the vehicle is being used for business purposes. Further, an employer cannot avoid liability by insisting that the employee pick up a portion of the cost or insure against loss. Hence, unless an agreement exists for a reasonable mileage reimbursement, the employer cannot insist that an employee pay for insurance to cover all or a portion of the cost of any potential loss or damage incurred when the employee uses a personal automobile for business purposes.
An employer may require that employees, who are paid at least twice the minimum wage, furnish their own “hand tools and equipment” (such as tool belts or tool boxes) if these materials are customarily required by the trade or craft. However, the employer cannot require employees to provide for the more expensive power tools at the employees’ expense.
The law providing for the employee to be reimbursed for all expenses incurred within the course and scope of employment cannot be changed or waived by an agreement between the employee and the employer. Neither can the employer claim as an excuse for nonpayment that the employee had not asked or submitted forms for reimbursement.
If an employee has to sue the employer for reimbursements, the payments shall carry legal interest at the same rate as judgment in civil actions. Interest shall accrue from the date the necessary expenditure or loss is incurred. Furthermore, the employee can recover all reasonable costs, including attorney’s fees, incurred in enforcing the employee’s rights.
There may be other situations where employees incur work or business-related expenses. In determining whether these expenses are reimbursable, the most important factor to consider is whether the expense was necessary to discharge one’s duty to the employer. If so, the expense should be reimbursed.
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C. Joe Sayas, Jr., Esq. is an experienced trial attorney who has successfully obtained significant results, including several million dollar recoveries for consumers against insurance companies and big business. He is a member of the Million Dollar-Advocates Forum—a prestigious group of trial lawyers whose membership is limited to those who have demonstrated exceptional skill, experience and excellence in advocacy. He has been featured in the cover of Los Angeles Daily Journal’s Verdicts and Settlements for his professional accomplishments and recipient of numerous awards from community and media organizations. His litigation practice concentrates in the following areas: serious personal injuries, wrongful death, insurance claims, unfair business practices, wage and hour (overtime) litigation. You can visit his website at www.joesayas law.com or contact his office by telephone at (818) 291-0088.
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