There is a California statute that says, in effect, the cost of running the business belongs to the business — and since remote work went mainstream, it has become one of the most violated laws in the state. Labor Code §2802 requires employers to indemnify employees for all necessary expenditures and losses incurred in direct consequence of the discharge of duties. Interest accrues from the date the expense was incurred, and enforcement actions carry attorney’s fees.
What it covers in practice:
Personal vehicle use — the dominant claim. Driving between job sites, to client meetings, on deliveries (ordinary commuting excluded) must be reimbursed, and the IRS standard mileage rate is the accepted proxy for actual cost. A field tech driving 150 unreimbursed work miles a week is owed roughly $5,000+ a year.
Personal cell phone — settled by Cochran v. Schwan’s (2014): when employees must use personal phones for work, the employer owes a reasonable percentage of the bill even if the employee has an unlimited plan and incurred no marginal cost. “You’d pay for the phone anyway” lost in the Court of Appeal.
Remote-work infrastructure — home internet, and equipment the job requires when working from home is required or effectively required. Post-2020 case law and Labor Commissioner guidance have treated a reasonable share of these as reimbursable.
Tools, uniforms, training required by the employer, losses from doing the job — including, notably, unreimbursed costs a worker absorbs because they were misclassified as a contractor.
What employers can’t do: waive it. §2802(h) voids any agreement to waive reimbursement — the “we pay a higher wage instead” theory only survives if a specifically identifiable portion of pay is designated for expenses and actually covers them.
Building the claim: a mileage log reconstructed from calendars and job tickets, twelve months of phone bills, a written reimbursement request creating the paper trail. Three-year lookback under CCP §338, and the Labor Commissioner’s free claim process handles 2802 claims alongside wage claims.
Small monthly numbers, multiplied by years and interest, become settlements. Add up what the job has been quietly billing you.
Every letter, form, and deadline referenced above is packaged in the free kits at JusticePrompt.com. No credit card, no upsell — the documents and the law, ready to use.
The Hedge 