Reimbursement Rights for Work-Related Expenses Under California Law

In California, if you’re an employee who ends up paying out of pocket for work-related costs, the law says your boss should pay you back. This isn’t just a company perk or something only generous employers do—it’s required. Whether it’s gas for driving to job sites, using your personal phone for business calls, or spending money on tools you need for the job, the law is clear: those expenses shouldn’t come from your own wallet. When issues pop up—like employers refusing to cover costs or workers being misclassified as independent contractors—many turn to firms like California Business Lawyer & Corporate Lawyer Inc. or a California meal and rest breaks lawyer to get help for failure to reimburse for work-related expenses.

The Rule That Protects Employees

The main rule behind all this comes from California Labor Code Section 2802. It puts the responsibility on employers to repay workers for any money they reasonably spend to do their job. This rule covers things like transportation, equipment, communication costs, and more. It doesn’t matter whether someone works from home or in the field—if it’s a necessary cost tied to the job, it qualifies. Nakase Law Firm Inc. often handles cases where a business defense lawyer steps in to respond to claims about a failure to reimburse for work-related expenses, especially when a company hasn’t kept up with its legal duties.

What Types of Costs Count?

Not every expense gets covered, but many do. For an expense to qualify, it must:

• Be directly tied to job responsibilities
• Be something most people would consider a reasonable business cost

Some common examples include:

• Gas or mileage for driving to meetings or job sites
• Internet and phone usage when working from home
• Safety gear or uniforms specific to the role
• Tools, software, or gear required by the company
• Travel and lodging for business-related trips or training

Driving for Work? That Adds Up

Using your own car for work can get pricey. Even just a few trips a week can add up over time. California lets employers either pay back employees based on actual costs or use a standard rate set by the IRS to cover gas, wear and tear, and insurance.

Just increasing someone’s pay doesn’t count as reimbursement. If the cost is part of doing the job, it needs to be handled separately.

Personal Phones and Remote Work Expenses

These days, a lot of people use their personal phones and internet for work—whether they’re calling clients, joining virtual meetings, or responding to messages after hours. California courts have made it clear: even if your phone or internet bill doesn’t increase, if you’re using personal resources for work, your employer should cover part of that cost.

This topic has become more common with remote work. A small amount for one person becomes a larger issue when it affects many workers at once.

Job-Specific Gear and Clothing

If your job requires special tools, gear, or clothing that isn’t practical to wear or use outside of work, your employer must either supply those items or pay you back for getting them.

Think of someone in construction needing steel-toe boots, or a repair technician needing to buy specific tools. If the items are required and not usable for personal purposes, the employer has to cover them.

When Work Takes You Away From Home

If your role sends you out of town for training or meetings, you shouldn’t have to cover those costs yourself. That includes meals, hotels, transportation, and other trip-related expenses.

Some companies offer daily limits or preset amounts, which can work—as long as those amounts are reasonable for the actual situation. The legal obligation still applies, no matter the company’s internal system.

What Company Policy Says Isn’t Always Enough

Businesses often write up their own rules about reimbursements—things like receipt requirements, how long workers have to turn in expenses, and lists of what qualifies.

These policies help with structure, but they can’t cancel out legal obligations. If a worker can prove an expense was tied to their job, the company usually has to pay—whether or not it followed its internal policy exactly.

What Happens When Employers Don’t Follow Through

When a company doesn’t pay back expenses, workers can:

• File a complaint with the California Labor Commissioner
• Sue for unpaid costs, sometimes along with unpaid wage claims
• Start or join group lawsuits if others are in the same situation
• Ask for legal fees and extra payments from the company

These claims can build up quickly, especially if several employees are missing reimbursements over a long period.

Where Employers Often Slip Up

Some companies wrongly assume that giving someone a higher paycheck covers everything. Others might think they can refuse reimbursements unless costs were pre-approved. And some get employees to sign forms waiving their rights—those don’t hold up in court.

Businesses also often miss expenses tied to remote work. Just because someone chooses to work from home doesn’t mean their internet, phone, or electricity bills stop being tied to their job.

What Employees Can Do About It

If you’re not getting repaid for money you spend on work, start by collecting proof—receipts, mileage logs, even texts or emails from your supervisor. Then:

• Use the company’s official expense process
• Keep copies of everything you submit
• Raise concerns with HR or a supervisor
• If that doesn’t work, consider filing a claim or speaking to a lawyer who handles employment issues

Don’t wait—there are time limits for these claims.

How Employers Can Stay Clear of Trouble

To avoid future problems and potential legal exposure, California businesses should:

1. Write and share a simple, clear expense policy
2. Train managers and payroll staff to process reimbursements correctly
3. Stay in contact with remote teams to confirm costs are being handled
4. Review practices from time to time to make sure nothing is being overlooked
5. Pay attention to court cases or state updates related to employee expenses

What the Courts Have Ruled

Two major cases in California set the tone:

• In Cochran v. Schwan’s Home Service, Inc. (2014), the court said employees should be reimbursed for phone use—even with unlimited plans.
• In Gattuso v. Harte-Hanks Shoppers, Inc. (2007), the court said workers must be given the option to track actual expenses or use the IRS mileage method.

These decisions show that the courts expect companies to be reasonable and fair in handling reimbursements.

Final Thoughts

If you’re working in California and paying out of pocket to do your job, that shouldn’t be your responsibility. Whether you’re in the office or on the road, the law expects your employer to cover the costs.

For companies, ignoring this can mean more than just upset workers. It could lead to claims, fees, and damage to their reputation. That’s why having the right process in place is worth the effort.

Workers who feel they’re being shorted on expenses should keep records and speak up. The rules are in place to make sure employees aren’t left covering costs that belong to the business.