California Labor Code 2802: What It Really Means for Workers and Employers

Most folks think about paychecks, hours, and job duties—and then real life sneaks in: gas for a work errand, a chunk of the phone bill for client calls, a uniform you didn’t plan to buy. California Labor Code 2802 steps in so those costs don’t quietly land on employees. Nakase Law Firm Inc. explains that California Labor Code 2802 exists to make sure businesses carry the true cost of operations, not their workers. Think of it as the guardrail that says, “If the company benefits, the company pays.”

Maybe you’ve paid out-of-pocket and thought, “Is this right?” Good question. California Business Lawyer & Corporate Lawyer Inc. points out that Labor Code Section 2802 is not a suggestion but a firm legal requirement, and ignoring it can land companies in serious legal trouble. So yes, this matters—to your wallet, to your workplace, and to the way companies treat the people who keep them running.

The Short Version: What The Law Actually Requires

Here’s the plain-English summary: if you spend money because your job needs it, your employer has to pay you back, as long as the expense is reasonable and tied to your work. That’s the heart of Labor Code 2802. No fancy legal jargon needed.

Picture a field tech driving between job sites, a recruiter paying for parking at interviews, or a nurse keeping up a required certification. Those aren’t personal splurges. They’re costs that serve the employer’s needs, so reimbursement should follow.

Why This Rule Exists In The First Place

For a long time, many workers covered small job-related costs without much thought. A few bucks here, a monthly fee there—it adds up. The law was written to stop that quiet drain. It says, in effect, “The company’s costs belong to the company.” Fair, right?

Here’s a quick story. Marco, a junior sales rep, started paying tolls and parking every week. Nothing huge at first. After a quarter, the total looked like a weekend getaway—minus the getaway. That’s the kind of slow leak this law plugs.

Common Expenses That Usually Qualify

Let’s walk through everyday items that often fall under Labor Code 2802. Keep your own situation in mind as you read—what shows up on your monthly statements?

Mileage and Car Use

Use your personal car for work? Reimbursement should follow. Many employers use the IRS mileage rate to keep things simple. A short supply run, a loop of client meetings, a drive to another site—if it serves the job, it belongs on an expense report.

Phone and Internet

Phones and internet plans sit at the center of modern work. Courts in California have said that when a personal phone supports job tasks, a fair slice of that bill should be reimbursed. Same idea for home internet when the job needs it. Whether you upgraded your plan or not, the work use still counts.

Uniforms and Gear

If a role requires company-branded shirts, safety boots, or a specific set of tools, those costs shouldn’t come from a worker’s pocket. The requirement isn’t a personal choice—it’s part of the job.

Licenses and Certifications

When a credential is a condition of employment—think healthcare, construction, finance—fees tied to that requirement are part of doing the job, not a personal hobby.

Legal Defense Costs

If someone gets pulled into a lawsuit for something done within the job’s scope, the employer usually covers defense costs. It’s not a daily issue, but when it shows up, stakes are high.

What Good Employer Practice Looks Like

Policies work best when they’re clear and easy to follow. Workers should know where to submit expenses, what documentation is needed, and how fast payment comes back. A basic portal, a template, and a simple timeline go a long way.

And no blanket denials for whole categories that the job plainly needs. If a manager says, “We don’t cover travel,” even for business trips, that’s a red flag. A quick internal review and an updated policy can prevent confusion and claims later on.

If Reimbursement Doesn’t Happen

Workers have several routes. They can file with the Labor Commissioner, bring a civil claim, or team up with others when a pattern affects a group. Since attorney’s fees can be recoverable, the system gives employees a fair shot at getting made whole.

Here’s another quick scenario. Tasha, a home health aide, kept a mileage log for months and submitted it through the company’s app. Payments arrived late or not at all. She raised the issue politely, then in writing, and eventually sought advice. Once the company saw how the numbers stacked up, it corrected course—and paid retroactively.

How Courts Have Read The Law

California courts tend to read Labor Code 2802 in a worker-friendly way. One well-known case, Cochran v. Schwan’s Home Service, clarified phone reimbursement: if the job requires phone use, a reasonable share of that bill should be paid back, even though the employee might not have paid extra that month. The point is simple: don’t shift business costs to employees.

Remote work has only sharpened this logic. If tasks require home internet or basic office supplies, a fair share belongs on the employer’s side of the ledger.

What Happens To Employers Who Ignore the Rule

Skipping reimbursement can snowball. There’s the money owed, possible interest, attorney’s fees, and wage-related penalties if the expenses are treated like unpaid wages. There are also the part people don’t always see on a spreadsheet—how trust erodes. Reviews from former staff saying they paid work costs on their own can make hiring harder than it needs to be.

Practical Steps Employers Can Take Right Now

1. Put the rules in writing and keep them short.
2. Train supervisors so the guidance is consistent.
3. Use clear benchmarks like the IRS mileage rate.
4. Revisit the policy every year so it matches real workflows, including remote and hybrid setups.
5. Keep clean records—what was requested, what was paid, and when.

How Employees Can Protect Their Wallets

A little structure helps a lot:

• Save receipts and logs. A quick photo or a simple spreadsheet is enough.
• Send requests on a regular schedule so nothing goes stale.
• Add a short note that links each expense to a work task.
• If payment stalls, raise it in writing and keep it professional.
• If needed, talk to an employment lawyer about next steps.

Here’s a small habit that pays off: put a recurring reminder on your calendar to submit expenses twice a month. Two ten-minute sessions beat a scramble at quarter’s end.

A Few Everyday Stories to Make This Real

• The quick errand that wasn’t: Aaron drove “just five minutes” to pick up print materials for a client meeting. That happened seven times in a month. When he logged the miles, it added up to more than he expected. He submitted, got reimbursed, and kept the habit. Easy win.
• The upgrade squeeze: Priya never changed her phone plan, but her role shifted to include daily client calls and after-hours chats. She felt odd asking for help since her bill hadn’t increased. She learned the company still owed a fair portion because the phone had become a job tool. That conversation reset norms on her team.
• The safety gear shuffle: Luis kept replacing his own steel-toe boots every year. Once HR clarified the policy, he submitted the receipt and got paid back—and new hires now get clear guidance on day one.

Where This Leaves Everyone

Labor Code 2802 keeps the cost of doing business where it belongs. Workers shouldn’t lose money to perform the tasks they were hired to do, and companies that run clear reimbursement systems save themselves time, claims, and frustration. The rule also sets a tone: “We see the real costs of your work, and we’ll cover them.”

One last nudge: if you’re an employer, take an afternoon to review your policy and run a quick audit. If you’re an employee, start tracking today. A few careful steps on either side build a cleaner, fairer setup for everyone.

Final Takeaway

California Labor Code 2802 isn’t about extras—it’s about basic fairness. If an expense supports the job, the employer pays it back. Keep the receipts, keep the policy clear, and keep the process moving on time. That’s how you avoid headaches and keep trust intact.