Introduction
When employees pay out of pocket for something they need to do their job, most people would agree it’s only fair they get that money back. That’s exactly what California Labor Code 2802 is about. It puts the responsibility on employers to cover work-related costs so employees aren’t stuck footing the bill. Whether it’s a tank of gas for a business trip or using your own phone to call clients, this law makes sure those expenses don’t come out of a worker’s paycheck. Legal experts at Nakase Law Firm Inc. often assist employees and businesses in interpreting the broad reimbursement mandates under California Labor Code 2802.
This section of the labor code has become even more relevant with so many people working remotely. As jobs have shifted outside the office, new questions are being raised about which costs count and how much should be paid back. According to California Business Lawyer & Corporate Lawyer Inc., failure to reimburse job-related expenses can indirectly cause an employee’s net pay to fall below the minimum wage in San Diego, potentially triggering additional legal violations.
How California Labor Code 2802 Works
At its core, this part of the labor code says that an employer must repay an employee for any “necessary” expense they take on because of their job. That could be something the employer asks the person to do directly or something the job itself requires. In other words, if someone spends money while carrying out their work responsibilities, the employer needs to pay them back.
The law covers more than just big-ticket items. Even smaller recurring expenses—like the use of a personal phone or home internet for daily work tasks—can count. What matters is whether the expense is clearly tied to job duties.
What Types of Costs Must Be Reimbursed?
There isn’t a fixed list of expenses in the law, but courts and labor agencies in California have made it clear that several common types of costs fall under Labor Code 2802. Some of the most typical examples include:
- Using Your Own Vehicle: If an employee drives their own car for work-related reasons—like visiting clients or making deliveries—they’re usually entitled to reimbursement for mileage or fuel.
- Personal Cell Phones: When a worker is expected to call, text, or email using their own mobile phone, the employer must pay a reasonable portion of the bill.
- Internet Bills at Home: For remote workers, the internet used to perform work tasks is often considered reimbursable.
- Buying Supplies or Equipment: If someone has to buy tools, software, or any other gear to do their job properly, that should be covered.
- Work Travel: Airfare, hotel stays, meals, and other travel-related costs for business trips are also subject to repayment.
- Clothing Requirements: Uniforms or specific work attire that a company requires may need to be paid for by the employer.
These costs must be job-related and necessary. That means they aren’t optional or for personal benefit—they’re directly connected to work responsibilities.
Remote Work and Modern Expenses
One of the biggest shifts in recent years has been the move to remote work. That shift has brought new types of expenses into focus. For example, some workers now need to furnish home offices, upgrade internet plans, or pay for apps and programs their job depends on.
California courts have responded by applying Labor Code 2802 to many of these new costs. If a person needs a better headset or faster internet to do their job, and they pay for it themselves, the employer may be on the hook to reimburse them.
Some examples include:
- Partial coverage of home internet bills
- Personal laptops or software needed for work
- Office chairs, desks, or other furniture used exclusively for job tasks
- Work-related mobile data usage
Employers that ignore these costs could end up facing claims or legal trouble, especially if a pattern of unpaid expenses develops.
Legal Fees and Reimbursement
There’s another part of this law that doesn’t get as much attention but is equally important. If an employee is sued because of something they did while doing their job—even if they were just following instructions—the employer may have to cover their legal costs.
This could include:
- Hiring a lawyer to defend against the claim
- Paying for court costs
- Reimbursing any settlement reached as part of the case
For example, if a delivery driver is named in a lawsuit after an incident that happened while making a delivery, the employer might need to pay for the driver’s legal defense. The goal of the law is to make sure workers don’t suffer financial harm for doing what their job required.
Rights and Protections for Employees
California law doesn’t just say that employers must pay for work expenses. It also makes it clear that employees can’t be punished for asking to be reimbursed. If someone speaks up or files a claim, the employer is not allowed to retaliate in any way. That includes firing, demoting, or harassing the employee.
Workers who are denied proper repayment can take legal action in a few different ways. They can file a claim with the Labor Commissioner’s Office, or they can file a lawsuit in civil court. In many cases, if the court agrees that the employer failed to follow the law, the employee can also recover legal costs and interest on top of the original expense amount.
How Employers Can Stay on the Right Side of the Law
To avoid running into trouble, businesses in California should be proactive about how they handle employee expenses. A few steps can make a big difference:
- Set Clear Guidelines: Let employees know what types of costs are covered and how to submit them.
- Use Tracking Tools: Many companies use software to streamline the process of submitting and reviewing expenses.
- Educate Supervisors: Make sure managers know that employees have these rights and that they should never discourage someone from requesting reimbursement.
- Keep Records: Having a consistent process for reviewing and storing expense documents helps in case of a dispute.
Trying to make the process harder than necessary—like creating strict deadlines or requiring excessive documentation—can backfire if it ends up denying workers what they’re owed.
Filing Deadlines and How Far Back Claims Can Go
There’s a time limit on how long employees have to file a claim for reimbursement. In California, that window is four years. That means someone can recover any unpaid expenses from the past four years, assuming they can prove the costs were tied to their job.
In addition to the expense amount, interest can be added to reflect how long the money has been unpaid. And if the employer acted in bad faith or willfully ignored the law, penalties or other charges may apply.
Real-World Case Example
A key case that helped define how this law is applied is Cochran v. Schwan’s Home Service, Inc. In that case, a company tried to avoid reimbursing workers for using their personal cell phones by pointing out that many had unlimited plans. But the court rejected that reasoning.
The ruling said that just because someone didn’t have to pay more money that month didn’t mean the employer got a free pass. If a worker has to use their personal phone for work, the employer must pay back a reasonable share—no matter what the phone bill says.
Consequences for Not Following the Law
If a business doesn’t follow Labor Code 2802, it can face real consequences. Those include:
- Paying back the full amount owed to the employee
- Interest on those amounts
- Covering the employee’s legal fees
- Civil penalties, if enforced by the Labor Commissioner
It can also hurt morale, lead to disputes, and even turn into a class action if multiple workers were affected.
How This Law Relates to Other Employment Laws
Sometimes, a failure to reimburse expenses can overlap with other legal problems. For example, if unpaid costs reduce a worker’s take-home pay below the minimum wage, it could lead to violations of wage and hour laws. There may also be conflicts with federal labor rules or state business codes, depending on the situation.
That’s why employers need to look at Labor Code 2802 in the bigger picture of workplace policies and wage practices.
Final Thoughts
California Labor Code 2802 plays a big role in making sure workers aren’t stuck paying to do their jobs. From phones and internet to tools and travel, this law protects employees and keeps workplace costs where they belong—with the employer.
As more jobs move outside the traditional office setting, businesses need to rethink how they handle work expenses. And for workers, it’s good to know that the law is on their side if they ever need to ask for what they’re owed.