Q: I work from a home office in California, but my employer is based in Illinois. I have many business expenses I pay out of my own pocket but my employer refuses to reimburse me for them. Is this legal in California?
--Paying the Company's Bills (CA)
A: In California, Labor Code § 2802 requires all employers to reimburse employees for any business expenses they incur "in direct consequence of the discharge of [his or her] duties". This applies to all employees in California regardless of where their employer is headquartered.
Home Office Expenses
These rules are especially relevant for employees such as yourself who work from a home office. For example, you may be entitled to reimbursement for your home office:
- Computer equipment;
- Fax equipment;
- Office furniture;
- Phone line and service;
- Cell phone and service;
- Internet service;
- "Rent" for the use of your home as an office;
- Utilities attributable to the home office;
- Supplies; and
- Any other expenses you pay to operate your home office.
All employees should keep in mind that these rules apply even if they do not work exclusively from a home office. If you regularly work at home on the weekends in your home office, it is quite possible that you are also entitled to reimbursement for these expenses from your employer, although to a lesser extent.
Mileage Reimbursement
All employees are entitled to reimbursement for mileage driven in their personal vehicle on behalf of their employer. Usually this is done on a "per mile" basis, often at the IRS rate, which is currently 48.5 cents per mile.
If you do not drive your own vehicle for work, but instead have a company car or fleet vehicle, you are entitled to reimbursement for any gas you buy for the vehicle, maintenance costs such as oil changes and repairs.
Attorney's Fees
When you bring a claim for unreimbursed expenses in California, you are also entitled to recover any attorney's fees you pay in pursuing your case. This is very helpful to employees because the harder an employer fights the case, the more they will have to pay the employee in the end.


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January 7th, 2007
James Peters
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