Under California Labor Code Section 2802, your employer must reimburse you for "all necessary expenditures or losses" you incurred as an employee "in the direct consequence of the discharge" of your duties. This includes expenses such as cell phone usage, travel, or driving that are related to your job. Under this labor law, employers face certain penalties when in violation of its terms. If you believe you are owed reimbursement for unpaid wages or expenses connected with your job duties, you can turn to Kingsley & Kingsley Lawyers. Our firm exclusively practices employment law which means we have extensive knowledge and experience in this field. Our legal team has recovered millions of dollars in settlements and verdicts for clients who have filed claims and lawsuits against employers engaged in unlawful practices since 1997.
Reimbursement of Owed Expenses
When an employer fails to reimburse an employee for job expenditures or losses, they face a penalty that includes paying the employee the unpaid expenses plus interest. This interest shall be "at the same rate as judgments in civil actions." Furthermore, the interest will start accruing from the day the expenditure or loss was incurred by the employee. The expenditures will include "all reasonable costs, including, but not limited to attorney's fees incurred by the employee" when having to enforce his or her rights under this law. Up to four years of unpaid expenses can be recovered by employees.
Reimbursement of Driving Expenses
Your employer is obligated to reimburse you for any expenses related to driving as part of your job, including not just fuel but repairs, maintenance, and more.
These expenses can be reimbursed in the following ways:
- According to your mileage. You are reimbursed for the number of miles you drive as part of your work duties. This mileage method is based on a rate set by your employer. The standard rate in such cases is generally the one used by the IRS which can change over time.
- As a lump sum. This method is a set amount paid to you by your employer based on your job duties. It is commonly calculated based on the usual number of miles driven while engaged in your work. This set amount may be added to your base salary but must be delineated as such. The reimbursed amount must realistically cover your actual expenses and must be in line with what you would be reimbursed under the mileage method listed above.
- According to what you actually spent. This method is based on actual receipts for what you spent for such items as gas, repairs, maintenance, registration, auto insurance, and depreciation.
Only commuting is exempt from employer-owed reimbursement as discussed above. As an example, if you are a salesperson, your commute from home to your sales office or to your first sales meeting is not reimbursable. Neither is your commute from your last sales call back to your home. However, all sales calls and meetings in between would be reimbursable as they involve driving as part of your sales duties.
Get Help From Our Los Angeles Reimbursement Attorneys
Do you believe you have not been adequately reimbursed for the expenses you have had to pay for as part of your job? These expenses can seriously reduce your income especially in times of inflation. At Kingsley and Kingsley Lawyers, we are here to ensure that your employee rights under the law are protected and that you receive the reimbursement you are owed. Utilizing an experienced employment lawyer can help you determine your best options. With 40 years of experience devoted exclusively to employment law, we are well-equipped to provide the savvy and strong representation you need in resolving this matter.
Talk to a Los Angeles reimbursement lawyer about your case today.
Contact us at (818) 990-8300.