California Labor Code § 2802 requires employers to reimburse employees for all necessary expenses incurred while performing their job duties. If your employer fails to reimburse these costs, you may be entitled to recover them, along with attorneys’ fees, through a wage and hour lawsuit.
What Qualifies as a Business Expense Under Labor Code 2802?California law broadly defines “business expenses” as:
“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.”[1]
The only exception is if the employer’s instructions or duties are unlawful and the employee believes them to be so.
Common Reimbursable Expenses:* Gas and depreciation for personal vehicles used for work * Office supplies needed for work duties * Lodging and meals during business trips * Costs associated with setting up a home office
Even if remote work was required due to a government order, such as the pandemic-related stay-at-home mandates, employers are still required to reimburse home office expenses. These include:
Mileage ReimbursementEmployers must reimburse employees for work-related travel, particularly for employees like outside sales representatives who use personal vehicles for business purposes. California law allows for multiple ways to calculate mileage reimbursement:
Most employers use the IRS mileage reimbursement rate, which for 2025 is:
| Purpose of Travel | IRS Reimbursement Rate | | --- | --- | | Business | $0.70 per mile | | Active-duty military for medical/moving | $0.21 per mile | | Charitable service | $0.14 per mile |
Reimbursement extends beyond gas and includes:
Additional Reimbursable Travel ExpensesBeyond mileage, employees should also be reimbursed for:
Business and Personal Travel CombinedIf a trip involves both business and personal elements, only the business-related expenses are reimbursable.
Example: Matt attends a two-day business conference in Chicago. She stays an extra day to visit family. The employer must reimburse expenses for the conference, but not the additional day.
Determining what qualifies as a business expense can sometimes be challenging.
Example: Joan, a sales rep, drives his personal vehicle to meet clients. On the way, he takes a 20-minute detour to watch his son’s baseball game. His employer is not required to reimburse mileage for the detour.
Recovering Unpaid ReimbursementsIf your employer fails to reimburse you for business expenses, you can file a wage and hour claim to recover:
Employers who fail to reimburse one employee often fail to reimburse others. If multiple employees are affected, a class-action lawsuit may be an option.
Know Your RightsExpense reimbursement is a legal obligation under California Labor Code 2802. If you believe your employer is violating these laws, you have the right to seek reimbursement and legal recourse.
For more information on labor compliance and risk management, visit Wilmes Risk Control Services.