Companies Must Reimburse the Necessary Business Expenses of Employees

Laws You Should Know – Labor Code § 2802 – Branigan Robertson is a CA employment attorney who focuses his practice on wage and hour issues and wrongful termination. Call for a free consultation with one of our lawyers.

There are many laws out there that employees should know. This is one of the major ones that employees should be armed with so their employers don’t take advantage of them. A company must reimburse employees for necessary business expenditures. Here is our main page on unreimbursed expenses.

Reimburse Necessary Business Expenses

§ 2802 states:

(a) An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful.

(b) All awards made by a court or by the Division of Labor Standards Enforcement for reimbursement of necessary expenditures under this section shall carry interest at the same rate as judgments in civil actions. Interest shall accrue from the date on which the employee incurred the necessary expenditure or loss.

(c) For purposes of this section, the term “necessary expenditures or losses” shall include all reasonable costs, including, but not limited to, attorney’s fees incurred by the employee enforcing the rights granted by this section.

Labor Code § 2802 Examples

What are some good examples of necessary business expenses?

  • Mileage
  • Supplies: such as paper, tools, pens & pencils, tape
  • Parking fees
  • Software & hardware
  • Protective equipment
  • Attorneys fees (if you are sued for issues relating to work your employer must indemnify you)

 

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