Employers in California must pay for all the necessary expenses for a job. This means that employees have to be reimbursed for the money they spend to do their work, including things like car and truck expenses, cell phones, computers and tablets, and other tools and equipment.
Leonard Carder’s lawyers have helped tens of thousands of workers recover unreimbursed work-related expenses. Our clients have included retail salespeople and mortgage loan officers who used their cars and cell phones on company business, bank employees who paid to use company websites and marketing materials, and drivers who were misclassified as “Independent Contractors” and required to pay for items such as truck costs (fuel, maintenance, insurance) as well as their phones, uniforms, and tools. California law allows employees to recover interest, penalties, and attorneys’ fees along with their unreimbursed work expenses.
Vehicle Expenses
If using a car, truck, van or other vehicle is part of the job, an employer must either supply the vehicle or reimburse its employees to use their own vehicles in California. For employees driving standard vehicles, the employer can either reimburse mile-for-mile (usually at the IRS mileage rate), or a “stipend” or flat amount that is enough to cover the employees’ actual expenses. The reimbursement amount should cover fuel, maintenance, repair, insurance, and depreciation, which are all factored into the IRS mileage rate. Workers driving larger vehicles – for example, delivery trucks, truck tractors, and large vans – must also be fully reimbursed., Because larger vehicles are more expensive to operate, the reimbursement rates should generally be higher than the standard IRS rate. Also, related items that companies often force truck drivers to pay-out-of-pocket, like cargo insurance, escrow deductions, general liability and workplace injury insurance premiums may also be reimbursable.
Cell Phones and Computer Devices
An employee who uses a cell or smart phone for work must either get an employer-provided device or be reimbursed for using her/his own phone. Even if an employee has a “family plan” or other unlimited usage, the employer must pay its share of the cost of that plan. Similarly, employers must cover the costs for tablets, handheld, and other computer devices (including printers and internet service) needed for the job.
Tools, Equipment and Uniforms
All tools, equipment and uniforms much be provided, with very limited exception for some hand tools in high-skilled trade professions.
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