When is Employee Expense Reimbursement Required, and What Happens If It Is Refused?
Employees are sometimes required to incur expenses to do their job. The most common example is driving a car, which not only involves fuel, but also, using a car. California law takes all this into account, and under Labor Code Section 2802, all employers are required to reimburse employees for expenses incurred in the performance of their employment duties, and when an employee's car is involved, the rate of reimbursement must be either (1) the IRS mileage rate (58.5 cents per mile as of July 1, 2008 through December 31, 2008, and 55 cents as of January 1, 2009) or (2) the actual costs associated with the business-related use. If the employer elects to reimburse the employees based on the actual costs at a rate less than the IRS mileage rate, the employer bears the burden of proving that the rate is reasonable based on the total vehicle expenses incurred during the preceding year.
If an employee has legitimately incurred a job related expense, and has not been properly reimbursed, but instead has been disciplined or terminated in retaliation for seeking reimbursement, that employee has rights under Labor Code Section 98.6. Such an employee can file a complaint for retaliation with with the California Labor Commissioner, which must assign an investigator to the complaint and conduct an investigation, and this may lead to the initiation of a legal action by the Commissioner on behalf of the employee. Employees in this situation also may be able to recover substantial sums through a lawsuit filed by a privately retained labor law attorney. Employers and employees must be aware of California law, and in this case, the old rule applies, that "he who goes to law by himself has a fool for an attorney."
If you are an Employer or an Employee and you have questions about Employee Reimbursement Issues, please call us at 1-800-306-6010 or contact our firm.
If an employee has legitimately incurred a job related expense, and has not been properly reimbursed, but instead has been disciplined or terminated in retaliation for seeking reimbursement, that employee has rights under Labor Code Section 98.6. Such an employee can file a complaint for retaliation with with the California Labor Commissioner, which must assign an investigator to the complaint and conduct an investigation, and this may lead to the initiation of a legal action by the Commissioner on behalf of the employee. Employees in this situation also may be able to recover substantial sums through a lawsuit filed by a privately retained labor law attorney. Employers and employees must be aware of California law, and in this case, the old rule applies, that "he who goes to law by himself has a fool for an attorney."
If you are an Employer or an Employee and you have questions about Employee Reimbursement Issues, please call us at 1-800-306-6010 or contact our firm.
