Review of Business Expense Reimbursement Practices

By:  Leiann Laiks, Esq.

This post by Leiann Laiks, an employment attorney in San Francisco, explores the legal implications of work-from-home arrangements for expense reimbursement.

Who should read this?

The information in this post is relevant for both employers and employees in California, particularly those involved in work-from-home arrangements. Corporate lawyers and corporate attorneys can also benefit from this information, as it touches upon employer obligations in a remote work environment.

Key points on Expense Reimbursement Practices

 

  1. Legal Obligations for Expense Reimbursement:
    • Labor Code § 2802(a) mandates that employers indemnify (or reimburse) employees for necessary expenditures or losses incurred in the discharge of their duties.
  2. Consideration of Thai v. IBM Decision:
    • Following the Thai v. IBM decision, employers with voluntary work-from-home agreements should reassess the allocation of associated expenses to employees.
    • Careful evaluation of potential risks associated with such agreements is advised.
  3. Reimbursement Practices for Work-from-Home Arrangements:
    • Given the implications of the Thai case, employers are encouraged to carefully devise reimbursement strategies for work-from-home setups, considering the associated risks.

 

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Leiann Laiks is an employment attorney in San Francisco. 

This blog is written as of April 2024.  Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites

All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations.  No blog constitutes a guarantee, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation.

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