Work-Related Expenses

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Employers in California must pay for all the necessary expenses incurred while performing a job. This means employees must be reimbursed for their out-of-pocket expenses for things like car and truck expenses (unrelated to commute), uniforms, cell phones, computers and tablets, other tools and equipment, and some required training expenses. Often individuals who have been misclassified as independent contractors see a large portion of their earnings going to expenses that should be reimbursed. California law allows recovery of such expenses going back four years, along with interest, penalties, and attorneys’ fees. 

We have helped thousands of workers recover unreimbursed work-related expenses, including freight drivers, food distributors, outside salespeople, loan officers, shuttle drivers, carpet and floor installers, construction workers, and canvassers. 

  • Workers in California that use their own vehicle to perform their job tasks must be reimbursed by the company that hires them. The reimbursements should be sufficient to cover expenses incurred in running the vehicle, including fuel, repair, maintenance, insurance, registration, and depreciation in the vehicle’s value over the time it is used on the job. For standard size vehicles, employers following the law typically reimburse for these expenses by paying the IRS mileage rate for every mile driven on the job or some equivalent. Larger vehicles—like box trucks and truck tractors—are more expensive to run and so the reimbursement rate will be higher. Also, related items that companies often force truck drivers to pay-out-of-pocket, like cargo insurance, escrow deductions, general liability and workplace injury insurance premiums may also be reimbursable.

  • Employees who must use their own cell phone for their work may be entitled to some reimbursement. Similarly, employers must cover the costs for tablets, handheld, and other computer devices (including printers and internet service) needed for the job.

  • Companies in California that require use of most tools, equipment, and uniforms must either provide them at their own expenses or reimburse for them.