Which California Employee Expenses are Eligible for Reimbursement?

As an outside salesperson employed by a California company, you may be able to receive reimbursement for a number of expenses incurred as part of your work.

Laws in the state have been enacted to specifically address which California employee expenses may be covered.

However, many employees may not know which of these expenses they are eligible to receive reimbursement for.

Occupations That May Qualify for California Employee Expenses Reimbursement

A number of outside sales occupations in California are covered under California labor law that requires employers to recompense employees for related job expenses.

Some of these job categories eligible for California employee expenses reimbursement include:

• Advertising Sales Representatives
• Banking and Escrow Sales Representatives
• Business Consultants
• In-home Consultants (i.e. those working as sales representatives in interior design, sales for solar panels and more)
• Pharmaceutical Sales Representatives
• Telecommunications Sales Representatives
• Other Sales Representatives

California Employee Expenses Reimbursement Categories

A number of expenses are frequently incurred by outside sales employees. Considered “necessary expenditures” that are incurred during the normal job performance duties of outside sales persons, they are covered under California state law as being eligible for reimbursement.

According to California Labor Code 2802, “An employer shall indemnify his or her an employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer.”

These necessary expenditures include:

• Expenses related to use of a personal vehicle
• Expenses related to gasoline consumption
• Expenses for mileage traveled
• Expenses related to the use of the cellular phone
• Expenses incurred while attending seminars or training
• Expenses for using the Internet and computer
• Expenses related to business lunches/meals
• Expenses for necessary office supplies

Employer Responsibilities for Reimbursing California Employee Expenses

Under Calif. state law, employers who have outside sales representatives on their payroll are required to reimburse employees for eligible expenses that were incurred during an employee’s course of work, even if an employee did not file an expense report.

Employers still have the responsibility to know if an employee is incurring work-related expenses since employers know the types of expenses that should be reimbursed and are aware, or should be aware, of the activities in which their employees participate.

In some cases, an employer may try to have an employee sign a contract that states that the employer is not responsible for reimbursing California employee expenses. However, this does not absolve an employer’s responsibility under the law.

Taking Legal Action over Unreimbursed California Employee Expenses

If you are employed as a salesperson in California and have had unreimbursed employee expenses at some time during the last four years, you may be eligible to file a lawsuit to recover lost compensation. Additionally, you may also be entitled to interest on the eligible California employee expenses that you incurred.

An experienced California labor law attorney can review your case at no charge and can assist you in deciding if taking legal action against your employer is right for you.

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.

Get a Free Case Evaluation Now