What to do if your former California employer still owes you for work expenses

When it comes to expense reimbursement, California offers more protection to employees in its state than those offered at the federal level, according to Timesheets.com.

California Labor Code mandates employers to reimburse employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties,” which includes “equipment, materials, training, business travel and uniforms,” says the Society for Human Resource Management.

This is more than what is required by the federal government. The federal government just requires that employers reimburse employees enough to ensure that what an employee makes minus what they spend on work expenses does not fall below the minimum wage. Some states, such as California, have stricter laws.

California workers who incur expenses in the course of performing their jobs are likely eligible for reimbursement. And if a California employer still owes them for work expenses, but they are no longer employed there, they are still legally entitled to reimbursement.

Many companies have policies requiring employees to submit reimbursement requests within a certain timeframe. However, California law states that an employer must reimburse an employee, or former employee, even if it is outside the company timeframe.

The state labor code does not specify a time period for an employee to submit expenses, although California law has a four-year statute of limitations for employees to request reimbursement, according to the state the Chamber of Commerce.

Knowing what to do if a former California employer still owes you for work expenses starts with knowing what reimbursements you are entitled to under the law.

In previous expense reimbursement lawsuits, the courts have sided with employees. In a reimbursement case against Schwan’s Home Services, the California Court of Appeals determined that the employer must pay a reasonable percentage of an employee’s cell phone bill if the employee is required to use the phone for work. Otherwise, the appeals court found, a business “would be passing its operating expenses onto the employee.” This can happen in the case of many expenses incurred by an employee for the benefit of their work, and by extension, for their employer.

California lawmakers are attempting to offer additional protections to workers in addition to requiring that employers reimburse employees for all necessary expenses. A proposed law would help workers who are misclassified as contractors. Contractors are not entitled to reimbursement for expenses, according to the San Francisco Chronicle, so it can sometimes be cheaper for an employer to classify a worker as a contractor instead of an employee. However, misclassification can be costly to a worker. 

Despite the law on their side, many workers may still face an uphill battle getting reimbursements that they are owed. They may not know what expenses can be reimbursed, or what rights they have. With many employees still working from home because of the coronavirus pandemic, it is more important than ever to make sure businesses expenses are properly reimbursed.

Filing a California lawsuit over work expenses

A number of California labor lawsuits have been filed over wage and hour violations, including failure to make expense reimbursements. If your employer has denied you the expense reimbursements you’re owed, you may be able to file a lawsuit and pursue compensation. You may not be the only employee at the company to be in this position, and could therefore be eligible to file a class action lawsuit.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a free California wage & hour class action lawsuit investigation

If you were forced to work off the clock or without overtime pay within the past three years in California, you have rights — and you don’t have to take on the company alone.

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