Reimbursement of expenses for remote work

Federal law states that employers must only reimburse work-related expenses when these expenses reduce the employee’s earnings below the minimum wage. However, in California, Labor Code 2802 requires employers to reimburse California employees for “all necessary business expenses or losses incurred by the employee as a direct consequence of the performance of their duties.”

If the job requires an employee to go to the post office, the company must reimburse that employee for transportation expenses.

If the job requires an employee to work from home, using a company laptop and cell phone to answer calls, the company must determine a reasonable reimbursement for the use of their Internet and cell phone plan.

For example, in the case of service payments, if the employee’s Internet bill is $90 per month, and we estimate that one-third of the day is work-related, the reimbursement will be rounded to $ 30 per month to cover part of the bill. In addition to services, the employer must reimburse for the purchase and use of objects during working hours.

So is an employer expected to pick up the tab for a nice leather swivel office chair?

No. Only items necessary for an employee’s job performance must be paid for by the employer. Because an employee can perform their work duties at home on the couch or using a chair at their kitchen table, an employer would generally not be responsible for providing an office chair. However, if the reasonable accommodation of an employee due to a disability or other condition requires a particular chair or type of chair, the employer must provide that accommodation.

An employer will be required to reimburse employees for work items such as pens, paper, cell phones, and laptops if the employer requires their use.

What about employers that allow flexible work hours?

If a business allows employees the option of working from home or in the office, a California court has ruled that employers do not need to reimburse employees for expenses incurred when they voluntarily work from home.