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COVID-19: Working from home and employer reimbursement of remote-work expenses in California and beyond
Source:
nortonrosefulbright.com
- Apr 14, 2020
To reduce the spread of COVID-19, many employers are requiring their employees to work remotely (either voluntarily or because several states, including California and New York, have imposed social distancing restrictions). The new work-from-home reality has implications for employers with workers employed in California and other states as described in this article. See Norton Rose Fulbright's additional COVID-19 resources.
Employers required to reimburse employees for necessary expenses in growing number of states
Section 2802 of the California Labor Code requires employers to reimburse their employees for the reasonable and "necessary" expenses they incur in direct consequence of discharging their job duties. The purpose of this statute is "to prevent employers from passing their operating expenses on to their employees." Gattuso v. Harte- Shoppers, Inc., 42 Cal. 4th 554, 562 (2007) (internal citation omitted).
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. 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. For many companies, this requirement has already impacted how companies implement 'Bring-Your-Own-Device' (BYOD) and remote work programs. The potential obligation to reimburse employees for remote work expenses is not limited to California, however. Other states, including Illinois, Iowa, Montana, New Hampshire and South Dakota, have enacted laws which may require reimbursement of employee expenses, although case law in these states is not as well-developed as in California.
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Category: General Business
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