Class Action Lawsuits Against California Employers for Failure to Reimburse Cell Phone and Mileage Expenses

Class Actions To Recover Unreimbursed Employee Expenses

Section 2802 of the California Labor Code requires employers to reimburse 100% of all “necessary” expenses employees incur in performing their jobs. Section 2802 is one of the most frequently violated California employment laws.

California employers must reimburse employees 100% of all expenses that are “necessary” to perform their jobs. The rule applies to ALL employees, regardless of “exempt” or “non-exempt” status.

Types of Expenses that Must Be Reimbursed

Vehicle Expense: Employers are generally not required to reimburse for commuting costs. However, if the employee uses a personal vehicle during the work day, the employer must reimburse 100% of the cost of using that vehicle. This includes the cost of fuel, depreciation, maintenance, insurance and registration. Employers may reimburse on a per-mile basis at the rate set by the IRS. As of January 1, 2018, the IRS reimbursement rate is $0.54 per mile. Unfortunately, many employers fail to reimburse employees for vehicle expenses, or reimburse too little.

Cellular Telephone Expense: California law requires the employer to reimburse a “reasonable” amount to cover the expense of providing the phone, including voice and data service. Employers frequently require employees to use personal phones for work-related communications. This includes telephone calls, text messaging and email. Many employers now require employees to install and use “apps” on their smartphones that enable the employer to more easily communicate with employees and even track their whereabouts.

Home Internet: If an employee maintains access to internet service at home for work purposes, the cost of home internet service is also reimbursable under Labor Code Section 2802.

Travel Expenses: Like vehicle expenses, employers must reimburse employees for travel costs, including airfare, hotel charges, car rental charges and other expenses employees incur in traveling for work.

Other Reimbursable Expenses: Other expenses that may be reimbursable include purchasing supplies, equipment and meals and other entertainment (particularly for sales people).

Class Actions Enable Recovery of Unreimbursed Expenses for Many Employees at Once

A class action is a type of lawsuit by one or more individual employees on their own behalf and on behalf of other employees who have suffered similar violations. Frequently, employers have policies that fail to reimburse or to adequately reimburse dozens, hundreds, or even thousands of employees for vehicle mileage, cell phone or other expenses. These types of situations are ideal for class action treatment.

Why File a Class Action?

Class actions allow lawyers to recover unpaid wages, benefits and unreimbursed expenses on behalf of many employees in a single lawsuit. Employees who elect to serve as representative plaintiffs in class actions are generally entitled to compensation for their time and effort, in addition to a share of the settlement proceeds.

If Your Employer Has Failed to Reimburse You Fairly, Contact Our Orange County Office Today

The Law Offices of Corbett H. Williams is an elite law firm that represents employees in discrimination, harassment, retaliation, wrongful termination, wage & hour and other employment matters. Strict time limits may apply to your claim, so you shouldn’t wait. Contact us today at 949-401-7547.