Expense Reimbursement: The Wage Violation Hiding in Plain Sight

California Labor Code §2802 requires employers to reimburse employees for all necessary business expenses incurred in performing their job. This includes mileage, cell phone use for work purposes, home internet when required to work remotely, tools and equipment, and uniforms. Failure to reimburse is a wage violation with a three-year lookback period.

Cell Phone and Internet Reimbursement

If your employer requires you to use your personal cell phone for work calls, texts, or email — and does not reimburse you — that is a §2802 violation. The California Supreme Court established in Cochran v. Schwan’s Home Service that employers must reimburse a proportionate share of employees’ cell phone bills when personal phones are required for work. The same logic applies to home internet used for remote work.

Mileage Reimbursement

Employers must reimburse business mileage at a rate that covers the full cost of operating the vehicle. The IRS standard mileage rate is generally accepted as reasonable. Employers who pay below the standard rate — or pay nothing — owe the difference for every business mile driven during the limitations period.

Uniforms and Tools

Required uniforms that cannot be worn as regular street clothes must be provided or reimbursed by the employer. Required tools that the employer does not supply must be reimbursed unless the employee earns more than twice the minimum wage. These violations are frequently overlooked in wage claims.

Educational use only. Not legal advice. Justice Foundation.