What is the California law for reimbursement?

Asked by: Prof. Oren Stroman  |  Last update: July 5, 2025
Score: 4.9/5 (36 votes)

Labor Code § 2802 – Required Expense Reimbursements. California Labor Code 2802 requires employers to reimburse employees for reasonably necessary expenses they incur to do their job. California Labor Code section 2802 requires employers to reimburse their workers for business expenses.

What are the reimbursement rules in California?

California law only requires reimbursement of expenses that are necessary to perform your work duties. Your employer does not have to cover expenses that you incur for your convenience only — though they might choose to.

Can an employer refuse to reimburse expenses in California?

Under California law, employers are required to reimburse employees for all necessary business expenses incurred while doing their job. Failure to reimburse those expenses is a violation of California employment law, and your employer may be required to compensate you.

What are the rules for reimbursement?

What Is An Expense Reimbursement?
  • The expense must be for deductible business expenses that are paid or incurred by an employee in the course of performing services for your organization.
  • The employee must be required to substantiate the amount, time, use, and business purpose of the reimbursed expenses.

What is the California cash refund law?

The common refund policy

If you return most items within seven days of the purchase and with a receipt, you are entitled to: A full cash refund, A store credit, An exchange, or.

Maximizing Your Rights: Understanding Expense Reimbursement Laws in California

37 related questions found

What is the refund law?

You must offer a full refund if an item is faulty, not as described or does not do what it's supposed to. Check when you have to offer refunds and accept returns. Customers have exactly the same rights to refunds when they buy items in a sale as when they buy them at full price.

What is the California cash out law?

The California parking cash-out (PCO) law requires employers of 50 persons or more who provide a parking subsidy to employees in any air basin designated as nonattainment to offer a cash allowance instead of parking space.

What is the policy of reimbursement?

What is an expense reimbursement policy? An expense reimbursement policy is a set of guidelines that dictate what out-of-pocket purchases employees can make on behalf of their company, and how and when they will be paid back for work-related expenses.

What is the California Labor Code 2802 reimbursement?

According to California Labor Code 2802, companies must reimburse employees for all necessary expenses when they work from home—which is why the law is also called the California Expense Reimbursement Law.

What is the 60 day rule for reimbursement?

To receive reimbursements under the reimbursement arrangement, employees must submit expense reports with any necessary receipts to the employer within 30 days after returning from a business trip or incurring a travel or entertainment expense, but no later than 60 days after incurring the expense.

What happens if my employer doesn't reimburse me?

Under California labor laws, your employer has to reimburse you for all work-required losses and expenses. If your employer has failed to reimburse you for work-related expenses, you may be able to recover compensation by filing a lawsuit.

What is the reimbursement rate in California?

California business mileage reimbursement rates

As of 2025, California uses the IRS standard mileage rate of $0.70 per mile for business travel. This rate, which was implemented in January 2025, is designed to cover the actual expenses of using a vehicle, including (but not limited to): Fuel cost.

What is the statute of limitations for expense reimbursement in California?

California Labor Law Provides 4 Year Statute of Limitations for Reimbursable Expenses.

Can an employer refuse to reimburse expenses California?

California requires employers to reimburse employees for all "necessary" business expenses (Cal. Lab. Code §2802).

What are the rights of reimbursement?

Reimbursement Rights means the rights of the Curing Party which has exercised its Self-Help Rights (as defined below), to collect from the Defaulting Party the reasonable costs and expenses actually expended by the Curing Party in exercising its Self-Help Rights, including reasonable attorneys' fees.

What is a 2640 reimbursement?

Family Code 2640 reimbursements apply when one party uses separate property assets to acquire a community property home. The separate property is reimbursed as a “dollar-for-dollar” payment to the contributing spouse.

What is the California reimbursement policy?

Under California Labor Code Section 2802opens in a new tab, an employee is entitled to be reimbursed by his or her employer "for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer." Thus, ...

Can an employer deny expense reimbursement?

This means that if you're a California-based employee and you incur reasonable business expenses necessary to perform your job, your employer is obligated to reimburse you under California law. Failure to do so can result in penalties and potential legal action against the employer.

What is the Labor Code 203 in California?

Labor Code Section 203 provides that "An employee who secretes or absents himself or herself to avoid payment to him or her, or who refuses to receive the payment when fully tendered to him or her...is not entitled to any benefit...for the time during which he or she so avoids payment..."

What is required for reimbursement?

If your employee made a purchase using their own money, a receipt is necessary to trigger reimbursement; if the purchase was made with company funds—for example, with a corporate card—you still need a receipt for your business records. Travel expenses: Airfare, rental cars, lodging expenses, train tickets, tolls, etc.

What is reimburse law?

1 : to pay back (a sum lost or expended) to someone [will the court costs] 2 : to make restoration or payment of an equivalent to [ the employee for travel expenses]

What are the 3 components of reimbursement?

The three parts of reimbursement are coding, coverage, and payment. The code is a standard alphanumeric sequence that describes drugs, medical devices, and medical and surgical procedures and services.

What is the California law 2035?

Gas-powered cars and other forms of transportation are the biggest source of carbon dioxide generated by the United States. The new waiver would allow California and 11 other states to require that any new car sold by 2035 be a zero-emissions vehicle.

Is it illegal to get paid in cash in California?

Often, when an employer pays an employee in cash, they pay them “under the table,” a shorthand for paying the employee without deducting or withholding anything. Working under the table in California is illegal. This can lead to unexpected liabilities, including significant penalties and interest for unreported income.

What is Section 43845 in the California Health and Safety Code?

§ 43845. Parking cash-out program. California Health and Safety Code. (a) In any air basin designated as a nonattainment area pursuant to Section 39608, each employer of 50 persons or more who provides a parking subsidy to employees, shall offer a parking cash- out program.