Your Job Shouldn’t Cost You Money
In California, there is a fundamental legal principle: the cost of doing business belongs to the employer, not the employee. Whether you are driving your personal vehicle for work, using your private cell phone to stay in touch with clients, or turning a corner of your living room into a home office, you are entitled to be paid back for those costs.
Ezoory Labor Law is committed to providing employees with aggressive and passionate legal advocacy. We provide the highest quality of legal services to help resolve cases and defeat workplace discrimination. We are dedicated to guarding workers’ rights and defending employees all throughout California.
Under California Labor Code Section 2802, employers are strictly required to reimburse employees for all "necessary expenditures or losses" incurred in the direct discharge of their duties. If you are subsidizing your company’s bottom line with your own paycheck, you need an experienced California business expense reimbursement lawyer to recover what you are owed.
The Power of Labor Code Section 2802
Labor Code 2802 is one of the most employee-friendly statutes in the state. It serves as an "indemnity" law, meaning the employer must make you "whole" for any money you spent for their benefit.
What Qualifies as a "Necessary" Expense?
An expense is generally considered necessary if it is required to perform your job or if you incurred it because you were following your employer's directions. This applies even if:
- You would have paid for the service anyway (like a home internet plan).
- Your bill did not increase because of work use (like an unlimited data plan).
- You work from home by choice, provided the employer "encourages" or "requires" remote work to maintain operations.
2026 Mileage Reimbursement: $0.72.5 Per Mile
For many California workers, the largest unreimbursed expense is the use of a personal vehicle. As of January 1, 2026, the standard IRS mileage rate—which California courts generally accept as a "presumptively reasonable" reimbursement—has increased to 72.5 cents per mile.
What Does the Mileage Rate Cover?
This 72.5-cent rate is designed to cover more than just gasoline. It includes:
- Fuel and oil.
- Wear and tear (depreciation).
- Routine maintenance and tires.
- Insurance and registration.
If your employer pays you a flat "car allowance" or a lower mileage rate, they may still be in violation of the law if that amount does not fully cover your actual costs of operating a vehicle in California.
Remote Work and Home Office Expenses
The shift to remote and hybrid work has created a massive wave of unreimbursed expense claims. If you work from home, your employer may be liable for a "reasonable percentage" of the following:
Cell Phone and Internet Data
Following the landmark Cochran v. Schwan’s Home Service case, California employers must pay a portion of your personal cell phone and home internet bills if you use them for work. Even if you have an unlimited plan and incurred no "extra" charges, the employer is still benefiting from your private subscription and must pay their fair share.
Home Office Equipment
If your employer requires you to work remotely but does not provide the necessary tools, you are entitled to reimbursement for:
- Laptops, monitors, and printers.
- Desks and ergonomic chairs.
- Printer ink, paper, and other basic supplies.
- Specific software or subscriptions (Zoom, Adobe, etc.) are required for your role.
Utilities (The 2026 Frontier)
In 2026, California litigation is increasingly focusing on the "hidden" costs of remote work, such as increased electricity and heating/cooling costs. If you are required to stay at home for 8–10 hours a day for work, you may be entitled to a reasonable stipend to cover the spike in your utility bills.
Why Employers Refuse to Reimburse
Employers often use common—but illegal—excuses to avoid paying these costs:
"We pay you a high salary to cover expenses."
(Unless the employer can explicitly break down exactly how much of your salary is for expenses, this is usually a violation.
"You didn't get prior approval."
(While an employer can set policies, they cannot refuse to reimburse a "necessary" expense just because you didn't ask first).
"You have an unlimited data plan, so it costs you nothing."
(California courts have flatly rejected this argument.
Damages: Recovering Your Money and More
If your employer has failed to reimburse you, Ezoory Labor Law can help you secure:
The Full Amount Owed
Every mile and every monthly bill dating back up to four years.
Interest
Under Labor Code 2802, interest accrues from the date you incurred the expense.
Attorney’s Fees
The law requires the employer to pay your legal costs if you win, ensuring your reimbursement isn't eaten up by legal bills.
Statutory Penalties
If the lack of reimbursement also results in you being paid less than the minimum wage, additional penalties apply.
Contact Ezoory Labor Law Today
At Ezoory Labor Law, we believe that no worker should have to pay to stay employed. We are dedicated to guarding workers’ rights and defending employees all throughout California. We provide the aggressive advocacy needed to audit your expenses and hold your employer accountable.
Call us today for a free, confidential case evaluation. Let us help you put your hard-earned money back where it belongs—in your pocket.
