The California Labor Code Section 2802 states that employers must reimburse employees for all necessary, job-related expenses or losses the employee incurs, such as tools, supplies, travel expenses, mileage, food, lodging, and other business expenses. If the employee incurred expenses and the expenses incurred are necessary to do the job, the employer must reimburse the employees for those expenses.
Under state law, the employer must reimburse the employee for the total expenditures incurred. For example, an employer cannot place an arbitrary cap or limit on expenses. Also, expense reimbursement does not depend on the employees' position or salary.
Examples of employee reimbursement violations
- An employee charged to replace lost keys, tools, supplies or other company materials but not reimbursed.
- An employee asked to purchase computer equipment, software, or other required tools but not reimbursed.
- A cashier forced to pay differences of cash register shortages.
- A retail salesperson required to buy company clothing as a "uniform" but not reimbursed.
- An employee required to use personal vehicle for business-related activities or travel but not reimbursed for gas, mileage, or parking.
Unreimbursed Employee Expenses in the NewsMAR-12-07: Legislators scramble as IRS investigates business expenses and unreimbursed employee expenses. [
MAR-06-07: Unreimbursed employee expenses may be eligible for tax deductions. [TIMES COMMUNITY: UNREIMBURSED EMPLOYEE DEDUCTIONS]
APR-11-06: Unreimbursed employee expenses can pinch financially. [KESQ: UNREIMBURSED EMPLOYEE EXPENSES]