Labor & Emp't Rev. .” California Labor Code section 2802 requires employers to reimburse employees, “for all necessary expenditures or losses incurred by the employee” while completing work duties. California Labor Code section 2802 requires employers to reimburse employees, “for all necessary expenditures or losses incurred by the employee” while completing work duties. Schwan’s Home Service, Inc. (2014) 228 Cal.App.4th 1137, 1140: “when employees must use their cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. “If an employee is required to make work-related calls on a personal cell phone, then he or she is incurring an expense for purposes of section 2802 . Section 2802 requires employers to indemnify employees for “all necessary expenditures or losses incurred by the … It does not specify what amounts are specifically necessary. Because the trial court relied on erroneous legal assumptions … reimbursement for easily overlooked expenses, including cell phone expenses, home office expenses, car allowances, and mileage reimbursements that are lower than the IRS rate. 2. As with most employment-related violations in California, the penalties for failure to comply with section 2802 can be severe. This class code lookup guide is to be used as an aid in determining the proper classification for a given operation. B247160, that California Labor Code Section 2802 requires employers to reimburse their employees for work-related use of personal cellphones and other personal electronic devices, stating: “We hold that when employees must use their personal cellphones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. … The California Labor Code – and, consequently, Section 2802 – only applies to employees. Here’s a list of Five Things to Remember About Employee Reimbursements to help California employers navigate this area of the law. “We hold that when employees must use their personal cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. As an alternative, employers may also consider avoiding the reimbursement issue altogether by providing company-issued cell phones which employees will be required to use for all business purposes. Personal cell phones at work: Five lessons employers should take away about expense reimbursement set forth in Cochran v. Schwan’s Home Services. Case results depend upon a variety of factors unique to each case. Reimbursement of employee cell phone expenses is governed by California Labor Code Section 2802, which provides: 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 . Employer and Employee [2750 - 2930] ( Chapter 2 enacted by Stats. California Labor Code Section 2802 states that employers must “indemnify” an 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.” Schwan’s Home Service, Inc. (2014) 228 Cal.App.4th 1137, 1140: “when employees must use their cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. No Exceptions: Employers Must Always Reasonably Reimburse Employees’ On-the-Job Use of Personal Cell Phones (California), Highlights from the SHLC September California/Nevada Employer Webinars, Selected Highlights from the SHLC August 6th California/Nevada Employer Webinar, Harassment Prevention and Anti-Bullying Training for Supervisors/Managers, Mandatory 1-Hour Harassment Prevention Training for Non-Managers/Non-Supervisors, Employee Handbooks and Workplace Policies, Management Training and Educational Programs. Id. To prevail on a failure to reimburse claim, California employees … California Labor Code Section 2802 requires employers to reimburse California employees for “all necessary business expenditures or losses incurred … The new Illinois law mirrors key language in California Labor Code Section 2802, California's expense reimbursement law. Under section 2802 of the California Labor Code, “[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.” Cal. By collecting this information, we learn how to best tailor this site to our visitors. For more detailed codes research information, including annotations and citations, please visit Westlaw . One way to avoid the Labor Code section 2802 quandary is to issue company cell phones to employees, while at the same time prohibiting the use of personal phones. The State of California has led the way in defining what employers are required to do when asking officers to bring their personal phones to work. DIVISION 3. The Court of Appeal rejected this sort of “but for” causation test. No Exceptions: Employers Must Always Reasonably Reimburse Employees’ On-the-Job Use of Personal Cell Phones (California) Section 2802 of the California Labor Code requires employers to reimburse their employees for any “necessary expenditures or losses” that … The Second District Court of Appeal held: “To show liability under section 2802, an employee need only show that he or she was required to use a personal cell phone to make work-related calls, and he or she was not reimbursed.” The appellate court observed that the purpose of section 2802 is “to prevent employers from passing their operating expenses on to their employers.”[3] Therefore, the issues raised by the trial court—the type of service plan the employee has, who pays for the plan, and whether the employee changed plans because of his job—are irrelevant. must have cell phones with data plans, home internet access, and a laptop or similar device in order to meet these demands. The new Illinois law mirrors key language in California Labor Code Section 2802, California's expense reimbursement law. Under California Labor Code section 2802, an employer is required to 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.” This includes reimbursement for mileage (if the employee is required to drive for work), gas, cell phone bills, and believe it or not, lawsuits. Recently, the California Court of Appeal, Second District concluded in Cochran v.Schwan Home Service, Inc. that when employees must use their personal cell phones for work-related calls, California Labor Code section 2802 requires they be reimbursed by their employer. For instance, police officers have been required to reimburse their employers for the cost of peace officer training mandated by law. In other words, the trial court interpreted Labor Code § 2802 to require that the employee show that she incurred some marginal cost as a result of the employer’s remote work requirement (i.e. Not … Although the Cochrancourt only considered phone calls made on personal cell phones, employer’s increasing reliance on smart phone’s sophisticated data-consuming capabilities, such as mandating the use of employer applications, are also covered under Labor Code section 2802. B247160, filed 8/12/2014), the California Court of Appeal, Second Appellate District, unequivocally held that under California Labor Code section 2802, an employer must always reimburse an employee for the reasonable expense of mandatory use of a personal cell phone. Although the Cochrancourt only considered phone calls made on personal cell phones, employer’s increasing reliance on smart phone’s sophisticated data-consuming capabilities, such as mandating the use of employer applications, are also covered under Labor Code section 2802. As long as these basic wardrobe items are “usual and generally usable in the occupation,” they are not reimbursable. Employees must have cell phones with data plans, home internet access and a laptop or similar device in order to meet these demands. [1] But what if an employee’s work-related activities do not actually generate any expense in addition to that which the employee would have normally incurred otherwise? California Labor Code section 2802 requires an employer to reimburse its employees for expenses they necessarily incur in the discharge of their duties. The general reimbursement statute of the California Labor Code is Section 2802. Labor Code section 2802, subdivision (a) requires: "[a]n 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…." The general reimbursement statute of the California Labor Code is Section 2802. . she purchased more minutes for her cell phone) before the employer would be liable under the statute. Id. California employers should regularly review their policies and practices to ensure compliance with Labor Code Section 2802. 2802. ABM Industries, a janitorial service provider, recently agreed to a $5.4 million dollar proposed settlement in Marley Castro, et al. Otherwise, the employer would receive a windfall because it would be passing its operating expenses on to the employee.”. Code § 2802(a). We are national in practice and provide excellent, prompt, cost-effective, team-based service. 335 through 349.5] while the recovery of a penalty generally has a one-year statute of limitations. Cochran illustrates the trend of California courts in broadly applying Labor Code section 2802. For instance, if you bus tables in a restaurant, you may be told to wear a white shirt, dark pants, and black slip-resistant shoes. Home; Attorneys; Practice … Please enable JavaScript to view this website. Under Cochran, an employer cannot defend a 2802 action related to use of a cell phone on the basis that the employee would have bought a cell phone even if she was not required to use it for work. Questions of necessity are common around the use of cell phones and other technology in the workplace. Employers do not need to provide reimbursement for expenses incurred by independent contractors. We hold that when employees must use their personal cell phones for work-related calls, Labor Code section 2802 1 requires the employer to reimburse them. Please use the search field below for any keywords in the desired classification. Labor Code § 2802 Reimbursement Claim Elements. EMPLOYMENT RELATIONS [2700 - 3100] ( Division 3 enacted by Stats. The court held that Labor Code Section 2802 requires an employer to reimburse an employee who uses his or her personal cell phone for work-related calls. For example, employers requiring employees to clock in and out on a cell phone app must either provide a cell phone … The law is intended to prevent employers from passing on their operating expenses to their employees. Where the use of equipment is … California’s Labor Code Section 2802 normally requires employers to reimburse employees for “reasonable” and “necessary” expenses incurred while performing their job duties. Therefore, regardless of whether an employee has a limited or unlimited cell phone plan, the employer’s obligation is the same: “The reimbursement owed is a reasonable percentage of [the employees’] cell phone bills.” Employers have a duty to determine what that reasonable percentage is, and to reimburse their employees accordingly. Employers do not need to provide reimbursement for expenses incurred by independent contractors. California’s Division of Labor Standards Enforcement has taken the position that employee licenses are not the type of costs that need to be reimbursed under Section 2802 where the licenses are required by a statute or ordinance. Code Section Code Section. Required cell phone use has also become more common. ABM Industries, a janitorial service provider, recently agreed to a $5.4 million dollar proposed settlement in Marley Castro, et al. For instance, where it is mandatory for employees to use their personal cell phones for work, generally they must be compensated for a reasonable percentage of their phone plans. 1937, Ch. Division 3, Employment Relations; Chapter 2, Employer and Employee; Article 2, Obligations of Employer; Section 2802. . The reimbursement owed is a reasonable percentage of the phone bill. March 2015, Volume 29, No. Labor Code Section 2802 requires an employer to “indemnify his or her employee for all necessary expenditures or losses Employees must have cell phones with data plans, home internet access, and a laptop or similar device in order to meet these demands. Did you know that California Labor Code Section 2802 requires employers to reimburse employees for any necessary expenses the employees incur while doing their jobs? Refreshed: 2018-05-15 The court held that the requirement even extends to an employee who has a cellphone plan with unlimited minutes as otherwise the employer would receive a windfall because it would be passing on its operating expenses on to the employee. . Section 2802 liberally applies to many expenses that employees may be required to incur to perform their jobs, including vehicle expenses, travel expenses, and cell phone and internet plans. Under California Labor Code Section 2802 and court decisions in Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal.4th 554 (2007) and Cochran v. Schwan’s Home Service, Inc., 228 Cal.App.4th 1137 (2014), employers are required to reimburse employees for all “necessary” and “reasonable” expenses. Read this complete California Code, Labor Code - LAB § 2802 on Westlaw FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system . However, we also litigate in federal and state courts throughout the nation. Labor Code section 350 states unequivocally that “Every gratuity is hereby declared to be the sole property of the employee or employees for whom it was paid, given or left for.” In addition, Labor Code section 351 clearly states … Five statutes that can shift attorney’s fees to employers. The California Labor Code requires employers to reimburse employees for certain expenses, but it’s not always clear which expenses should be reimbursed by the employer, and which expenses should be borne by employees. Analysis and Development in Employment & Labor Issues. The plaintiff in Cochran filed a class action on behalf of customer service managers employed by Schwan’s, seeking reimbursement under Labor Code section 2802 for expenses pertaining to the work-related use of their personal cell phones. We hold that when employees must use their personal cell phones for work-related calls, Labor Code section 2802 1 requires the employer to reimburse them. Obligations of Employer [2800 - 2810.7] ( Article 2 enacted by Stats. The court held that the details about each employee’s cell phone plan do not determine liability. The employee knew that his employer had a policy of reimbursing business-related expenses, yet he did not submit any reimbursement requests. . The most common examples are mileage, travel, and dining expenses. Thats why many forward-thinking companies are now adopting bring-your-own-device (BYOD) policies that allow employees to work on their personal laptops, tablets and smartphones instead of on company-issued equipment. Reimbursement issues can depend on the circumstances of a particular workplace. 2802. Labor Code Section 2802 Requires Employers To Indemnify Employees. These days, most employers cant keep pace with technology as nimbly as their workforce can. We handle single plaintiff cases under creative fee arrangements and are one of the few firms that successfully tries class and collective actions to juries under Title VII and the FLSA. This website uses cookies to collect certain information about your browsing session. For a detailed description of each code, please refer to the Classification Manual. Instead, it held that when an employee “must” use his personal cell phone for work-related calls, the employer … The penalty amounts and procedures applicable to “expenses” are set forth in Labor Code Section 1197.1. Reimbursement of Employee Expenses California’s Labor Code Section 2802 normally requires employers to reimburse employees for “reasonable” and “necessary” expenses incurred while performing their job duties. Who is submitting the receipt? Toggle navigation. In other words, "reimbursement is always required." The court stated that section 2802 requires that the employer should pay some “reasonable percentage” of the employees’ cell phone plans when the cell phone is required for work. The court stated that section 2802 requires that the employer should pay some “reasonable percentage” of the employees’ cell phone plans when the cell phone … v. ABM Industries, Inc., a class action involving a California class of over 3,000 cleaning employees who claim that they were not reimbursed under Labor Code section 2802 for the expense of required use of their personal cellphones. Our labor and employment team has been active for over 70 years representing employers in all matters related to the employer/employee relationship. Section 2802 of the California Labor Code requires employers to reimburse their employees for any “necessary expenditures or losses” that they incur as a direct result of doing their job. For example, if an employee is required to use her personal cell phone for business purposes, but her cell phone plan provides for unlimited data and calling, there is arguably no additional expenditure incurred as a result of the work-related use. Necessary expenditures or losses include all reasonable costs. For more detailed codes research information, including annotations and citations, please visit Westlaw . In Cochran v. Schwan’s Home Service, Inc., the California Court of Appeal ruled unequivocally that an employer must cover the cost of an employee’s work-related cell phone calls. A statutory duty generally has a three-year statute of limitations, [See CCP Sec. By independent contractors any future case most common examples are mileage, travel, and dining expenses amounts are necessary. Are national in practice and provide excellent, prompt, cost-effective, team-based service unlimited plans guide! 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