Under California law, employers are required to reimburse their workers for job-related business expenses. When they fail to do so, either due to an error or a deliberate act, this is a violation that could lead to legal action.
Employment Lawyer Ian Silvers: Protecting Your Rights as an Employee
I’m Ian Silvers, a partner at Bisnar Chase, where I focus on employment law—specifically wage and hour class actions and representative cases. Below, I’ll highlight some frequently overlooked issues regarding your employer reimbursing you for expenses you incur. This applies to all employees, whether they are exempt or non-exempt, paid a commission, piece, rate, salary, or hourly, or are inside or outside sales reps.
Read on to learn about reimbursement, payment, and what to do if your employer doesn’t pay business expenses.
Reimbursable Items by Your Employer
Under the California Labor Code, your employer is required to reimburse you for all necessary expenditures you incur as a direct result of doing your job. For these, had you not used your own personal items, your employer would have had to spend money for use of those items (buying, renting etc.) and so they have saved money. But they can’t do so at your expense. The reimbursable expenses can include the following:
1. Use of Your Vehicle (including accounting for wear and tear):
- You must be reimbursed for using your vehicle for your job (multiple locations, errands, driving as your job). This is separate from your pay for time worked.
- Commute: Your regular trip to and from work is usually not reimbursed (though exceptions exist).
- Wear and Tear: Reimbursement includes costs for wear and tear on your vehicle.
2. Required vehicle insurance is higher than the minimum required by law:
- If your employer requires you to have more insurance on your personal vehicle than the state minimum, you are entitled to reimbursement for this extra amount.
3. Cell phone/internet/laptop/iPad/tablet use:
- Personal Devices: If you use your own phone, laptop, tablet, or internet for work tasks (such as work apps, clocking in and out, taking photos for work tasks, messages, calls, etc.), you must be reimbursed.
- Internet: You must be reimbursed for using your home internet or hotspot for work, whether your employer provides a device (such as a laptop) for you to use or you use your own personal device.
- Simple Check-ins: Just calling to check your schedule usually doesn’t count.
4. Uniforms/Tools:
- Uniforms: You must be reimbursed for buying/maintaining special clothing only needed for your job (not regular clothes you could wear elsewhere).
- Tools: You may be entitled to reimbursement. Rules for tool reimbursement vary, and you should talk to a lawyer about your specific case.
Reimbursement Methods
These expense reimbursements can be calculated in different ways based on the type of expense.
1. Vehicle Use Payments:
- Employers can pay you per mile (at least the IRS mileage rate, which is 70¢/mile in 2025), a flat monthly amount, or a mix (e.g., a base amount plus per-mile).
- Key Rule: No matter how they pay, it must fairly cover your actual vehicle costs. Example: $100/month for 2,000 miles driven isn’t fair and doesn’t cover vehicle costs.
2. Extra Insurance Cost:
- This is part of your vehicle costs, and it is included in the vehicle use payment calculation to determine whether the amount is fair.
- One way to look at it is to calculate the difference between the state minimum insurance you pay and the higher required insurance.
3. Tech/Internet Payments:
- Employers might pay a flat monthly amount for using your phone, laptop, tablet, or internet.
- Key Rule: As with the above, this payment must fairly cover your actual expense. The payment should approximate the employer’s cost of providing the service or device, as they would incur similar expenses without your device or internet.
4. Uniforms and Tools Payments:
- Employers should reimburse the actual cost of buying the required items and maintaining uniforms.
What Should You Do to Be Reimbursed?
Many workers overlook these expenses because they expect to use their own items for work or believe that the reimbursement requirements apply only to other employees, not to them.
Use of your personal items matters, and you deserve proper reimbursement for them. Follow these steps to protect your rights:
- Document Everything: Save your receipts, records of business expenses, and expense claims to your employer, to the extent that any such documents exist for these expenses.
- Contact an Employment Attorney: Consult an experienced California employment lawyer at Bisnar Chase to find out more about your legal rights.
Our employment law team at Bisnar Chase has an outstanding track record in holding employers accountable for workplace violations. We have recovered millions of dollars for wronged employees across California. Contact us for a free consultation.
Ian Silvers
Ian Silvers is a partner and trial lawyer at Bisnar Chase, specializing in wage and hour violations and workplace violation class actions. He is dedicated to supporting workers and fighting for employee rights in California.
