Expense Reimbursement
📋 California Labor Code § 2802: Employee Expense Reimbursement Rights
California law requires employers to reimburse employees for all necessary business expenses incurred in performing job duties.
💰 WHAT MUST BE REIMBURSED:
Labor Code § 2802 requires reimbursement for all necessary expenditures or losses incurred in direct consequence of performing job duties:
✓Business use of personal vehicle
✓Business use of personal cell phone
✓Business use of personal internet
✓Tools and equipment required for the job
✓Required uniforms and special clothing
✓Business travel expenses
✓Required professional licenses and certifications
✓Necessary supplies and materials
📱 MULTIPLE REIMBURSEMENT METHODS:
Employers can reimburse expenses using different methods:
**For Mileage:** Employers may use the IRS standard mileage rate (72.5 cents per mile for 2026) OR reimburse actual costs incurred. Either method satisfies the requirement, absent evidence that actual costs exceed the reimbursement.
**For Cell Phone/Internet:** Employers may use a reasonable percentage of actual costs OR provide a stipend that adequately covers business use OR reimburse actual documented expenses.
**For Other Expenses:** Reimbursement must cover the actual costs incurred by the employee.
⏰TIMING:
Reimbursements should be provided within a reasonable time period. While California law doesn’t specify exact timing, common practice is to reimburse within the same pay period or the next regular pay period following submission of expense documentation.
🏠 REMOTE WORK EXPENSES:
Employees working remotely may be entitled to reimbursement for:
• Internet costs (if remote work is required or necessary for the job)
• Cell phone costs for business use
• Home office equipment (if required for the job)
**Important:** Voluntary remote work where employees choose to work from home for their own convenience may not require reimbursement. Reimbursement is required when remote work is necessary to perform job duties or required by the employer.
📝 EMPLOYEE RIGHTS:
Employees have the right to:
• Request reimbursement for all necessary business expenses
• Receive timely reimbursement
• Documentation of reimbursements received
• File wage claims for unreimbursed expenses
⚖️WHAT EMPLOYEES SHOULD KNOW:
• Employers cannot require employees to bear work-related expenses
• “Cell phone allowances” that don’t cover actual business use may be insufficient
• Reimbursement rates below actual costs incurred may violate the law
• Employees can calculate actual vehicle costs instead of accepting mileage rates if actual costs are higher
✅BEST PRACTICES FOR EMPLOYEES:
□ Keep detailed records of business expenses
□ Submit expense reports promptly with required documentation
□ Track mileage with dates, destinations, and business purposes
□ Calculate your actual cell phone/internet business use percentage
□ Save receipts for tools, equipment, and supplies purchased for work
□ Request clarification of your employer’s reimbursement policy
□ Document all unreimbursed business expenses
💡 VEHICLE MILEAGE EXAMPLE:
If you drive your personal vehicle 500 miles per month for work, at the 2026 IRS rate of 72.5 cents per mile, you should receive $362.50 per month in reimbursement. If your actual costs exceed this amount, you may be entitled to reimbursement of actual costs.
📱 CELL PHONE EXAMPLE:
If your monthly cell phone bill is $100 and you estimate 40% of usage is for work calls and emails, reimbursement should cover at least $40 per month of business use.
Do you have unreimbursed business expenses from your employer?
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Please note that this article is for informational purposes only and should not be considered and is not legal advice, and does not constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business or individual situation.
This post shares general information based on common patterns I see in California workplaces. It is not legal advice, does not create an attorney-client relationship, and outcomes depend on specific facts — no lawyer can guarantee a result. Past results do not guarantee or predict future outcomes. AI may have been used to create this post. All content reviewed by a CA attorney before publication. This post may be attorney advertising.
Michael Trust Law, APC, 703 Pier Avenue, Ste. B367, Hermosa Beach, CA 90254: michaeltrustlaw.com