You may be wondering if your employer is required to reimburse you for work-related expenses in California. The answer to this question depends on a few factors, including the type of expense and whether it is considered a necessary part of your job.

Does Your Employer Have to Reimburse You for Work-Related Expenses in California?

Check out these three scenarios:

If you are required to purchase tools or equipment for your job, your employer is generally required to reimburse you for the cost of these items. However, if the expense is not considered necessary for your job, your employer may not be required to reimburse you.
If you are required to travel for work, your employer is generally required to reimburse you for reasonable travel expenses. This includes expenses such as lodging, meals, and transportation costs. However, your employer is not required to reimburse you for personal expenses, such as entertainment or souvenirs.
If you are required to work overtime, your employer is required to pay you time and a half for each hour of overtime worked. However, your employer is not required to reimburse you for any expenses incurred as a result of working overtime, such as childcare or transportation costs.

Overall, your employer is only required to reimburse you for work-related expenses if they are considered necessary for your job. If you are unsure whether an expense is considered necessary, you should ask your employer before incurring the expense.

What Does California Labor Code, Section 2802 Say About Reimbursable Expenses?

California Labor Code, section 2802, requires employers to reimburse employees for all “necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” This includes any expenses that are “reasonably incurred” and “directly related” to the performance of an employee’s job.

For example, if you are a salesperson who is required to drive your own vehicle to meet with clients, your employer would be required to reimburse you for your mileage expenses. Similarly, if you are a construction worker who is required to purchase your own tools and equipment, your employer would be required to reimburse you for the cost of these items.

However, not all work-related expenses are considered “necessary” under California law. For example, if you choose to purchase a new suit for a job interview or business meeting, your employer is not required to reimburse you for this expense. Similarly, if you incur expenses while traveling for leisure, such as souvenirs or entertainment, your employer is not required to reimburse you for them.

Does Your California Employer Have to Reimburse You for Expenses Related to Working From Home?

One of the most interesting areas of reimbursable expenses is related to working from home. It can be tricky and a bit confusing, so here’s what you need to know.

If you are required to work from home, your employer is not automatically required to reimburse you for all of your expenses. However, if you incur additional expenses as a result of working from home, such as increased electricity costs or the purchase of office supplies, your employer may be required to reimburse you for these expenses.

Necessary Expenses

To determine whether your employer is required to reimburse you for working from home expenses, the first step is to determine whether the expense is “necessary.” As we discussed in a previous section, an expense is only considered “necessary” if it is reasonably incurred and directly related to the performance of your job.

For example, if you are required to work from home and you incur increased electricity costs as a result, this expense would likely be considered “necessary” and your employer would be required to reimburse you for it. However, an expense is only considered “necessary” if it is directly related to your job and necessary for you to perform your job duties.

On the other side of the coin, if you are required to work from home and you purchase a new office chair to make working from home more comfortable, this expense would not be considered “necessary” as it is not directly related to your job and is not necessary for you to perform your job duties.

Reasonably Incurred Expenses

In addition to being “necessary,” the expense must also be “reasonably incurred.” This means that the expense must be one that a reasonable person would incur in order to perform their job duties. For example, if you are required to work from home and you purchase a new computer to use for work, this expense would most likely be considered “reasonably incurred.”

However, if you purchase a new computer that is not necessary for you to perform your job duties, such as a gaming computer, this expense would not be considered “reasonably incurred.”

Directly Related Expenses

The final factor to consider is whether the expense is “directly related” to your job. This means that the expense must be directly related to the performance of your job duties, and not merely helpful or convenient.

For example, if you are required to work from home and you purchase a new printer to use for work, this expense would be considered “directly related.” However, if you purchase a new printer that is not necessary for you to perform your job duties, such as a photo printer, this expense would not be considered “directly related.”

What Should You Do if Your Employer Refuses to Reimburse You for Necessary Expenses?

If you believe that you have incurred necessary and reasonable expenses related to your job, but your employer has refused to reimburse you, there are a few things you can do.

First, you should check your employment contract to see if it includes a reimbursement policy. If it does, then you should follow the procedures outlined in the policy. If your contract does not include a reimbursement policy, or if you are unsure of the procedures outlined in the policy, you should reach out to your HR department or supervisor and request clarification. Finally, if you still believe that you are owed reimbursement for necessary expenses, you may want to consult with an attorney to discuss your legal options.

Do You Need to Talk to an Attorney About Reimbursement?

If you need to talk to an attorney about an employer failing to reimburse you for job-related costs, we may be able to help. Call our office at 818-230-8380 or fill out the form below to schedule your free consultation with an experienced labor attorney in Los Angeles now.