Monday, May 01, 2006

Fuel Prices Out of Control. My Prediction: more demands for reimbursement by employees.


With fuel prices spiraling out of control, more California employees will likely be availing themselves of the protection of Labor Code section 2802, which requires an employer to reimburse the employees for expenditures incurred in the performance of their duties.

Labor Code 2802. (a) An employer shall indemnify his or her employee 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, even though unlawful,
unless the employee, at the time of obeying the directions, believed
them to be unlawful.
(b) All awards made by a court or by the Division of Labor
Standards Enforcement for reimbursement of necessary expenditures
under this section shall carry interest at the same rate as judgments
in civil actions. Interest shall accrue from the date on which the
employee incurred the necessary expenditure or loss.
(c) For purposes of this section, the term "necessary expenditures
or losses" shall include all reasonable costs, including, but not
limited to, attorney's fees incurred by the employee enforcing the
rights granted by this section.


It is surprising to me how many employees accept an assignment to drive across town without requesting reimbursement for that expense. Those employees have a right to reimbursement for those expenditures.

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