Business Consultants in California Should Be Reimbursed for Work-Related Expenses

California employees, including business consultants in California, are protected under labor codes that state expenses incurred while doing business for their employer should be covered or reimbursed by the employer.

California Labor Code Section 2802 provides for the reimbursement of an employee’s expenses and losses that are incurred in the direct consequence of work duties.

Business consultants in California have the right to be reimbursed for all business and consulting-related expenses, including equipment, materials, training, travel and uniforms.

Expense Reimbursement Rights for Business Consultants in California

There are several categories under which business consultants in California can be reimbursed in the case they make purchases or incur expense while working for their employer. All “necessary expenditures” must be reimbursed.

One of the perhaps most abused categories is mileage reimbursement. Many employers do not follow labor code and either do not reimburse their employees at all or do not pay them enough to fully reimburse them.

If business consultants in California must use their own vehicles for business related travel, the employer must reimburse the employee for expenses related to the vehicle.

There are a few different ways that business consultants in California and other employees can be reimbursed for mileage related expenses.

The first way is called the actual expense method. Under this method the employer must keep detailed records of different expenses such as gas, insurance depreciation and repairs.

The employee is then paid for actual expenses that are calculated and paid separately.

Another method is called the mileage reimbursement method. Business consultants in California and other employees track their mileage they drive under work-related activities. The workers then submit that information to their employers.

Their employer then multiplies the mileage by a predetermined amount such as the IRS (Internal Revenue Service) mileage rate. If an employer does not choose to use this rate, they can set a different rate as long it is based on objective evidence that reflects the average cost in the geographic area where the work is performed.

The third mileage reimbursement method for business consultants in California is called the lump sum method. Under this method the employer pays the workers for mileage and expenses incurred in a lump sum.

Additionally, if a employee uses a employer-owned vehicle and incurs expenses, still the employer must reimburse the employee.

There are other categories that fall under reimbursable work expenses for business consultants in California as well as other employees.

Many business consultants in California travel for work. When an employee travels for work, employers must reimburse for expenses related to meals, lodging and other incidental expenses. The employer can choose between utilizing an IRS-determined per diem rate or the employer may reimburse actual expenses incurred.

If the employer chooses to give the employee a per diem rate, then they must make the employee aware of the policy before the trip happens. If they do not do this, they will have to reimburse the employee for the actual travel costs incurred.

In addition to reimbursement of mileage and travel, under California labor code employers must also reimburse for expenses related to cell phones, tools, equipment and uniforms.

If you have worked or currently work as an outside sales representative in California and believe your employer failed to properly compensate you according to California mileage expense reimbursement requirements or other reimbursement laws, you may be eligible for compensation.

Join a Free California Outside Sales Expense Reimbursement Class Action Lawsuit Investigation

If you worked as an outside sales representative in California in the last four years and your employer did not reimburse your expenses, your employer may be violating your rights and you may be entitled to compensation.

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