Calif. Salespersons Seek Expense Reimbursement for Car Use

Employee rights activists and attorneys are encouraging California employees to come forward in reporting their on the job expenses.

According to the California labor code, employers must compensate employees for all necessary expenses incurred in the course of doing their jobs.

The statute specifically states that employers must reimburse employees for all “necessary expenditures or losses”, which are incurred from the occupational duties of the job.

Expense reimbursement for car use is one of many costs employees reportedly lose money on, due to a variety of factors pertaining to auto maintenance.

Employers are obligated to pay expense reimbursement for car use can include gas and mileage costs.

This particular occupational expense has come to the attention of lawmakers after a recent employee rights class action lawsuit, Trosper v. Stryker Corp., was filed on behalf of sales representatives who had incurred numerous vehicle and other expenses.

These sales representatives would frequently work from home and would reportedly incur costs for use of phones, fax machines, office supplies, vehicles, and internet access.

In addition, these employees would also incur expenses from travel and from entertaining or dining with clients.

The court certified the class, based on allegations that these expenses were incurred from their occupation. It is important to note that this movement specifically surrounds outside sales representatives in the state of California, who are often required to drive to meet their clients making expense reimbursement for car use necessary.

Overview of California Expense Reimbursement for Car Use

The state of California requires employers to reimburse outside sales representatives for any expenses incurred in the course of the job, regardless of whether or not the employee files an expense report.

Employers are obligated to know if an employee incurred on the job expenses, to insure proper compensation. Expense reimbursement for car use can be calculated using one of the following methods:

• Actual Expense Method: Requires employees to track expenses for fuel, maintenance, repairs, insurance, registration, and depreciation. This information must be submitted to employer, along with miles driven for business purposes.
• Mileage Method: Requires employees to track mileage driven for work purposes, with the reimbursement amount determined by the number of miles incurred multiplied by the predetermined amount.
• Lump Sum Method: Employer may give employee a monthly set lump sum for car related expenses, which should be sufficient to cover auto expenses.

Even though auto maintenance can be very costly, many employers have allegedly not been paying expense reimbursement for car use to their outside sales representatives. California employees who may be owed this compensation may consult a specialized lawyer to determine eligibility.

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