IBM case before the California Court of Appeal reaffirms what an "operating expense" is under state labor law
Reimbursing employees for job-related expenses has become a hot-button issue with so many employees working remotely and even on-site employees communicating with their employers by way of their personal cell phones. The California Court of Appeal has recently reaffirmed (and some would say expanded) the right of California employees to be reimbursed for job-related expenses.
California has long required that employers reimburse employees for necessary expenses they incur in doing their jobs. Although recodified and amended several times, the obligation has existed in California law since 1872. Despite its longevity, the significance of the obligation dramatically changed with the advent of computers and cell phones – and lately, with the prevalence of employees working remotely. On July 11, 2023, the California Court of Appeal addressed the issue of remote working during the COVID-19 pandemic and ruled that the government-mandated shutdown did not create an exception to Labor Code Section 2802: remote workers must be reimbursed for the necessary expenses they incur in order to perform their work duties, regardless of who mandates the remote working.
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