California law requires employers to reimburse employees for all necessary expenses incurred while performing their job duties, and this obligation doesn’t disappear simply because an employee works from home. Remote employees often find themselves covering costs like internet service, cell phone usage, printer supplies, or even a portion of their home office setup, without ever seeing that money reimbursed. When employers fail to cover these necessary business expenses, employees may be entitled to recover those costs, along with additional penalties in some cases.
What Counts as a Reimbursable Expense
California Labor Code Section 2802 requires employers to reimburse employees for expenses that are necessary to perform their job duties. For remote workers, this frequently includes:
- A reasonable portion of home internet service used for work
- Cell phone costs when a personal phone is used for work calls or texts
- Computer equipment, monitors, or peripherals required for the job
- Office supplies such as paper, ink, or other necessary materials
- A portion of utility costs in some circumstances, depending on job requirements
Employers cannot avoid this obligation simply by failing to have a formal reimbursement policy in place, nor can they shift these costs onto employees through vague expectations that remote work comes “at your own expense.”
Why Employers Often Get This Wrong
Many employers mistakenly believe that remote work arrangements shift all associated costs onto the employee, or they may only reimburse expenses that are formally requested through a specific process employees were never told about. Common problems include:
- No clear reimbursement policy communicated to remote employees
- Reimbursement requests that are denied or delayed without explanation
- Flat stipends that don’t come close to covering actual necessary costs
- Employers treating reimbursement as optional or discretionary rather than legally required
Calculating What You’re Owed
Reimbursement doesn’t require tracking every penny down to the last cent, but employees should be prepared to show a reasonable basis for their claimed expenses. Helpful documentation includes:
- Monthly internet and phone bills showing the base cost of service
- An estimate of the percentage of use dedicated to work purposes
- Receipts for any equipment or supplies purchased for the job
- Any employer communications about remote work expectations
- Records of any reimbursement requests submitted and their outcomes
Remedies Available Through a Successful Claim
Employees who successfully pursue an unreimbursed expense claim may recover:
- The full amount of unreimbursed necessary business expenses
- Interest on the unpaid amounts
- Attorney’s fees and costs associated with pursuing the claim
- Additional penalties in certain circumstances involving willful violations
Steps to Take If You’re Covering Work Expenses Out of Pocket
If you’re a remote employee paying for internet, phone, or equipment costs without reimbursement, a few steps can help protect your ability to recover these expenses:
- Start keeping copies of relevant bills and receipts going forward
- Submit a written reimbursement request if you haven’t already
- Note any employer responses, including denials or delays
- Keep records of your remote work arrangement and job requirements
Know Your Rights
Remote work shouldn’t mean quietly absorbing the cost of doing your job. PLBH helps California employees recover expenses their employers were legally required to cover. Call (800) 435-7542 to find out what you may be owed.