California Employers Association - Expense Reimbursement for … We will continue to monitor developments in this area and update our readers. Employees Telecommuting During Public Health Crisis May Be … Proposition 22 Passed – What Does It Mean for the Gig Economy in California? Published by Seyfarth Shaw LLP, this blog is for in-house attorneys, HR professionals, business owners, and managers who face real issues on a daily basis and need practical solutions to address them. This law applies regardless of where the employee works. For a company whose budget can stretch, th… As employees continue teleworking, employers should familiarize themselves with the requirements for reimbursement under California law. If the employee is working in a state where reimbursement is required for “necessary” expenses, other expenses away from the office). Jackson Lewis P.C. Even before COVID-19, remote work policies were rising in popularity — usually as an optional perk for employees.But with the onset of COVID-19, millions of U.S. workers are now required to work from home. For instance, employees who use a personal cell phone to make work-related calls should be reimbursed for at least a percentage of their cell phone bill, though it can be tricky to determine what percentage of calls were necessary for work and what percentage were personal calls unrelated to work. For example, prior California court decisions have concluded employers must reimburse for portions of an employee’s cell phone use when the employee uses their cell phone for work. If paying a percentage of the bill, employers should explain the calculation method to employees when they receive the Office Safety. In response to “stay-at-home” orders issued by Governor Gavin Newsom and various California municipalities to prevent the further spread of the coronavirus (SARS-CoV-2) employers have been asking or requiring employees to work from home. Finally, remember that California’s expense reimbursement law only applies to expenses that are “necessarily” incurred in direct consequence of the job duties or in complying with an employer’s directions. New Cal/OSHA Emergency Regulation to Protect Workers from Wildfire Smoke, Attention California Employers! We aim to provide timely, topical information on the challenges that California employers face. I recently published a short article in the California Labor & Employment Law Review that addresses an employer’s obligations to reimburse employees for expenses they incur while working remotely (i.e. The complicated question is, “how much reimbursement should be provided for the use of home internet or personal cell phones?” Unfortunately, unlike the IRS guidance on mileage, no similar measure exists for the use of technology. Internet speeds above normal consumer levels, when required for job duties. Over the last few years, California has led the way in efforts to gain reimbursement for employees of many different work-related expenses. Because the laws affecting telecommuting are constantly evolving, employers should be deliberate when enacting a telecommuting policy and continually revisit it to ensure it is legally compliant. An employer generally complies with section 2802 by either reimbursing a given expense or providing the employee with the equipment necessary to ensure that the employee does not incur the expense in the first place. 1.0 PURPOSE. Although the current situation is a far cry from business as usual, California companies must nonetheless follow the state’s labor laws, including those governing meal and rest breaks for … However, with everyone working from home now and for the forseable future, we are considering moving to a stipend based plan. As employees continue teleworking, employers should familiarize themselves with the requirements for reimbursement under California law. D. Telework or remote work costs must be consistent with the employee’s work requirements and telework or remote work agreement. Finally, employers should consider developing policies for the use of personal devices for work and reimbursements. Additionally, any California business with one or more employees must carry worker’s compensation insurance. Here’s what may be included in your company’s remote work policy, based on some of the most common remote work reimbursement questions: Who pays for the work equipment? For example, California allows an employee up to three years to submit a reimbursement request. California Labor Code section 2802 requires employers to reimburse employees for “all necessary business expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Before the pandemic, business expenses were usually limited to costs such as business travel or personal car mileage because workforces were operating within offices. 820 ILCS 115/9.5. And while OSHA generally doesn’t inspect home offices as it does with traditional workplaces, employers must still track work-related injuries that occur with remote workers. Source If management is requiring a remote worker to travel outside the area where they reside, whether that be a company office or other location, then many companies treat it as a business trip for that employee and reimburse all incurred expenses. Today’s technology allows many employees to work nearly as well in their pajamas at home or in their jeans at a local coffee shop as they can dressed up at the office. As a result, employers should assess the amount of time employees will be using personal devices and internet service to determine what is reasonable. It seems to be easier and requires less admin work to approve a monthly/recurring internet expense. Insight & Commentary on California Workplace Law Issues & Developments. Named the “Innovative Law Firm of the Year” by the International Legal Technology Association, the firm’s commitment to client service and depth of expertise draws clients to Jackson Lewis for excellent value-driven legal advice. When allowing employees to work from home, employers should have a comprehensive telecommuting policy. However, reimbursement may not be required when an employer provides devices to employees, even if the employee ultimately elects to use their own personal device. Home Sweet Home Office: Considerations With Remote Employees, Calling All Employers Who Use An Outside Salesforce, The Road Less Traveled: Reimbursing Employee Vehicle Expenses Through Increased Compensation Can Make All The Difference. Now, employers must consider an expanded view of business expenses as employees remain at home. Generally, the burden is on the employer to make sure employees are getting reimbursed for business-related expenses. Tracking non-exempt employees’ time on the clock becomes increasingly more difficult if they work remotely, since their supervisors obviously cannot consistently see when work is being performed. California employers must reimburse you for … These are the most commonly provided items, with laptops/MacBooks more popular than clunky desktop computers that can’t be taken offsite or into the office if needed. Q: The employee never told us about the expense, am I still required to provide a reimbursement? Labor Code section 3600 states that an employer is liable “for any injury sustained by his or her employees arising out of and in the course of the employment.” Liability for an injury sustained by an employee while working at home is no different than if the employee had sustained the injury while working in the corporate office. Accidents happen while working, and they can just as easily occur at a home office or remote working location. Other necessary or emergency expenses, when approved in writing by Purchasing and Accounts Payable. California Issues Additional Guidance on What Pay Data Reports will Require, The State of California and Many California Localities Are Set to Increase the Minimum Wage on January 1, 2021 – Make Sure You Are Ready. In addition, the IT Division will also provide reimbursement toward a portion of an employee’s Home Internet access expenses. The Department of Industrial Relations (“DIR”) reiterated this requirement in its recent guidance related to reopening. Under Labor Code section 226.7, employers must also pay an extra hour of pay each day in which they fail to provide a meal or rest period. Reimbursement Obligations. Remote work can help organizations recruit new employees with hard-to-find skillsets, or retain current employees who move due to spouse relocation or other life events. Remote work arrangements raise various policy issues, including reassignment of official worksite, pay, and reimbursement for travel. An exception might be made if the worker only teleworks due to adverse weather or a personal appointment (waiting for a plumber, for example). Does A Trip To The Fridge And Back Count As A Break? A: The most common expenses employers offer reimbursement for are equipment (e.g., additional monitors, printers), office supplies, and a portion of the employee’s monthly Internet bill and/or mobile device data plan. In March 2020, many employers suddenly found themselves managing a mostly remote workforce due to COVID-19. Cal/OSHA Issues Notice of Emergency Regulation for Electronic Submission of CY 2017 Form 300A by December 31, 2018, San Francisco’s 10-Day Travel Quarantine Order Tells Holiday Travelers to Stay Home, Though Santa Likely Excepted, Cal/OSHA Approves Emergency Temporary COVID-19 Standard, Asked and Answered: Updates on California’s Pay Data Reporting Law, Not So Happy Thanksgiving? Nonetheless, an employer must still encourage employees to take their meal and rest breaks in accordance with the company’s legally compliant meal and rest break policy that applies to all non-exempt workers. “In-office workers who travel are usually provided with laptops, so it stands to reason an organization would do the same for remote workers,” says Hastings. Working from home? Working from home? b. California is in the forefront of states mandating that employers reimburse employees for work-related expenses. Employee Home Internet Cost Reimbursement - Corbett Williams … Your employer may owe you for work-related expenses, like cell phones, internet, computer, office supplies and travel costs. Remote employee expenses: Staying compliant with state, federal … Employers should be cognizant of this potential risk and have policies in place that ensure, to the extent possible, that an employee’s workspace is free from potential hazards, including loose Legos and hedge trimmers. To help prevent injuries, employers should require employees to keep their remote work areas free from obstructions and hazards. This means that an employee can recover the costs associated with the business use of their personal cell phone, internet, and car. Work equipment includes all hardware and software you use to carry out your work – it includes your Internet connection, your laptop/desktop computer, cell phone, as well as the apps you use to facilitate work. California Labor Code section 2802 requires employers to reimburse employees for “all necessary business expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” While this arrangement may not be viable for every employer, allowing employees to work from home or other locations of their choosing has enabled employers to reduce overhead expenses while boosting employee morale. Having built its reputation on providing premier workplace law representation to management, the firm has grown to include leading practices in the areas of government relations, healthcare and sports law. Nonetheless, California law requires employers to maintain records of non-exempt employees’ work hours, and pay them overtime premium wages for any hours worked over eight in one day, over forty in one week, or any hours on a seventh consecutive day during a workweek. Many employers already use some type of software that allows them to accurately record hours worked by an employee, and this should be no different for an employee working remotely. Time to Review Employee Wages and Salaries for 2021, California Supreme Court to Hear Oral Arguments on Retroactive Application of Dynamex, Updated COVID-19 Quarantine Guidance for the Golden State, California Supreme Court Cases Employers Should Watch In 2021, Here We Go Again: California Employers Face Third Round of Stay-at-Home Orders, California Employers are now Grappling with Cal OSHA’s COVID-19 Emergency Temporary Standard. There is no exception to this requirement for employees who work remotely. These types of reimbursements include personal use of devices and even home internet. Finally, remember that California’s expense reimbursement law only applies to expenses that are “necessarily” incurred in direct consequence of the job duties or in complying with an employer’s directions. Common types of remote-work expenses include monthly minute and data plans for cell phones, home internet, and purchases of various equipment. 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