Business Expense Reimbursements for Remote Workers – Internet Cost

Employers in California are required to compensate their workers for any expenses incurred while performing their duties. These costs include the cost of supplying a personal automobile or a cell phone for business use. Employers are increasingly demanding employees to work from home, which nearly always necessitates the employee having access to the internet.

If your employer requires you to work from home and the job necessitates the use of home internet service, including sending or receiving email, your employer must pay you for the cost of providing such service.

The reimbursement of employee costs is governed by California’s Labor Code section 2802. This is an important statute, which reads as follows:

An employer shall indemnify his or her 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 . . . .

It is clear that section 2802 requires California employers to reimburse its employees for all costs incurred in the performance of their duties or by the employees as a result of the implementation of the employer’s instructions.

Section 2802 applies to any type of expense incurred by an employee while performing a job, including the cost of home internet access if work from home is necessary. Employers must also compensate employees for vehicle expenditures (such as mileage), the cost of supplying a cellular device and any other fees incurred by the employee.

Please note that the information provided on this website is for general information purposes only and is not to be construed nor relied upon as legal advice nor the formation of an attorney-client relationship. For a free consultation with Attorney Thomas M. Lee, please contact us.