California Employers Must Reimburse Expenses and Indemnify Employees for Work-Related Losses

California Labor Code § 2802 requires an employer to indemnify an employee for all losses and reasonable expenses incurred in the discharge of the employee’s duties. Traditionally, this means such items as mileage, gas, travel expenses, equipment or tools. The threshold requirement for reimbursement of expenses is relatively low – the employee needs to show that the expense was incurred while performing services for or for the benefit of the employer, and that the employee was under the direction or control of the employer while performing those services.

There is no reimbursement rate for mileage for private employees who use their own cars for work purposes. However, if an employee brings a claim against his employer for mileage reimbursement, the Labor Commissioner will generally use the IRS rate at the time of expense.

The indemnity requirement also mandates that an employer must pay for an employee’s attorneys’ fees incurred in defense of a claim brought against the employee for acts which occurred within the scope and course of employment. For example, an employee involved in an automobile accident or an employee sued for alleged violations of a non-compete agreement. The employer also must cover any adverse judgment imposed on the employee.

Read more

wage theft lawyer

Wage Theft Is A Big Problem in the Fast-Food Industry, A Survey Finds

Wage theft can occur in any workplace, but it tends to happen more frequently in specific industries compared to others. A survey published in May 2022 revealed that wage theft is a…

READ ARTICLE
worker misclassification lawyer

Matco Tools To Pay 15.8 Million Dollars in a Misclassification Lawsuit

Disclaimer: This article is for information purposes only. McCormack Law Firm is not involved in this class action. Worker misclassification remains a serious issue in California. When employers misclassify employees as independent…

READ ARTICLE
wage theft lawyer

Google Contractors Blame Recruiting Firm For Systemic Wage Theft

Silicon Valley tech companies have been in the news lately over accusations of gender discrimination, harassment, and toxic work environments. This time, Google is facing allegations that its contractors are subjected to…

READ ARTICLE
employee misclassification lawyer

Red Robin Assistant Manager Files Class Action Over Unpaid Overtime and Missed Breaks

Disclaimer: This article is for information purposes only. McCormack Law Firm is not involved in this class action. California employees can be classified as exempt or non-exempt, and there are important differences…

READ ARTICLE
SEEN ON
Fox40-bw
KPIX-bw
SFGate-bw
marin-ij
Abc10-bw