What Makes California Employment Law Different ... and How to Deal With It. 1.1 In an effort to provide improved support for campus-wide systems and our partners, the IT Division will provide reimbursement toward a portion of an employee’s Cell Phone expenses, in accordance with WSU Policy 3-65. Working from home? Finally, remember that California’s expense reimbursement law only applies to expenses that are “necessarily” incurred in direct consequence of the job duties or in complying with an employer’s directions. However, with everyone working from home now and for the forseable future, we are considering moving to a stipend based plan. Now, employers must consider an expanded view of business expenses as employees remain at home. If an employee is using a personal device for business activities, employers should consider how much the employee will be using that device for work purposes, and reimburse the employee accordingly. California Issues Additional Guidance on What Pay Data Reports will Require, The State of California and Many California Localities Are Set to Increase the Minimum Wage on January 1, 2021 – Make Sure You Are Ready. Proposition 22 Passed – What Does It Mean for the Gig Economy in California? Employees Telecommuting During Public Health Crisis May Be … California Administrative Agencies Have Answers! “In-office workers who travel are usually provided with laptops, so it stands to reason an organization would do the same for remote workers,” says Hastings. Many employers already use some type of software that allows them to accurately record hours worked by an employee, and this should be no different for an employee working remotely. Generally, the burden is on the employer to make sure employees are getting reimbursed for business-related expenses. Remote employee expenses: Staying compliant with state, federal … Remote work arrangements raise various policy issues, including reassignment of official worksite, pay, and reimbursement for travel. Q: The employee never told us about the expense, am I still required to provide a reimbursement? However, several states (including California, the District of Columbia, Illinois, Iowa, Massachusetts, Montana and New York) have specific state law requirements applicable to employee expense reimbursements. Tracking non-exempt employees’ time on the clock becomes increasingly more difficult if they work remotely, since their supervisors obviously cannot consistently see when work is being performed. When remote workers travel to an office location they may incur expenses such as transportation, meals and accommodation. Time to Review Employee Wages and Salaries for 2021, California Supreme Court to Hear Oral Arguments on Retroactive Application of Dynamex, Updated COVID-19 Quarantine Guidance for the Golden State, California Supreme Court Cases Employers Should Watch In 2021, Here We Go Again: California Employers Face Third Round of Stay-at-Home Orders, California Employers are now Grappling with Cal OSHA’s COVID-19 Emergency Temporary Standard. This law applies regardless of where the employee works. Although the current situation is a far cry from business as usual, California companies must nonetheless follow the state’s labor laws, including those governing meal and rest breaks for … Employees may request reimbursement for internet or cellular services, if, and only if: such service required to perform UC business, is approved by their department head, AND ; the employee does not already have high speed internet or cellular service available at their home, or alternative work location. Working from home? Named the “Innovative Law Firm of the Year” by the International Legal Technology Association, the firm’s commitment to client service and depth of expertise draws clients to Jackson Lewis for excellent value-driven legal advice. 1.0 PURPOSE. Published by Seyfarth Shaw LLP, this blog is for in-house attorneys, HR professionals, business owners, and managers who face real issues on a daily basis and need practical solutions to address them. The best way to avoid any ambiguity is to either (1) provide employees with all equipment the employer deems necessary or (2) have a policy that outlines which expenses are reimbursable and to what extent, and makes clear that if the employee incurs necessary business expenses beyond those anticipated, those expenses should be submitted in accordance with the company’s business expense reimbursement policy. 820 ILCS 115/9.5. According to the Occupational Safety and Health Administration (OSHA), small business owners are responsible for providing employees with safe work environments. Even before COVID-19, remote work policies were rising in popularity — usually as an optional perk for employees.But with the onset of COVID-19, millions of U.S. workers are now required to work from home. The Department of Industrial Relations (“DIR”) reiterated this requirement in its recent guidance related to reopening. If paying a percentage of the bill, employers should explain the calculation method to employees when they receive the Additionally, any California business with one or more employees must carry worker’s compensation insurance. For example, prior California court decisions have concluded employers must reimburse for portions of an employee’s cell phone use when the employee uses their cell phone for work. Cal/OSHA Approves Temporary COVID-19 Standard, Fall Into Handbook And Policy Update Season, ERISA & Employee Benefits Litigation Blog, Workplace Safety and Environmental Law Alert Blog. While this arrangement may not be viable for every employer, allowing employees to work from home or other locations of their choosing has enabled employers to reduce overhead expenses while boosting employee morale. Here’s what may be included in your company’s remote work policy, based on some of the most common remote work reimbursement questions: Who pays for the work equipment? Internet and Cellular Service. https://www.motus.com/employee-work-from-home-reimbursement California Employers Association - Expense Reimbursement for … To help prevent injuries, employers should require employees to keep their remote work areas free from obstructions and hazards. In the meantime, if you have any questions, please contact your favorite Seyfarth attorney. Expense Reimbursement for Employees Working Remotely - Cook … As a result, employers should assess the amount of time employees will be using personal devices and internet service to determine what is reasonable. Are My Bunny Slippers A Reimbursable Business Expense? Does A Trip To The Fridge And Back Count As A Break? To head off frequently asked questions, the telecommuting policy should cover the following areas: Workplace Solutions. Finally, employers should consider developing policies for the use of personal devices for work and reimbursements. If the employee is working in a state where reimbursement is required for “necessary” expenses, other expenses Jackson Lewis P.C. The policy should provide that employees are entitled and expected to take their uninterrupted, off-duty meal and rest breaks, and require employees to certify that (1) their time records are correct and (2) their breaks were provided in accordance with company policy. And in one case, a court found that an employee was entitled to workers’ compensation benefits when he sustained injuries trimming his hedges while on call. Other necessary or emergency expenses, when approved in writing by Purchasing and Accounts Payable. Reimbursement Obligations. IRS: You can reimburse remote employees for internet access Seyfarth Synopsis: Although the concept of working remotely may seem simple, employers must consider several issues before allowing employees to work from home. Labor Code section 2802 requires employers to reimburse employees for expenses “necessarily incurred” in their employment. There is no exception to this requirement for employees who work remotely. These types of reimbursements include personal use of devices and even home internet. The statute and courts only indicate a reasonable reimbursement is required. Insight & Commentary on California Workplace Law Issues & Developments. And while OSHA generally doesn’t inspect home offices as it does with traditional workplaces, employers must still track work-related injuries that occur with remote workers. We aim to provide timely, topical information on the challenges that California employers face. is a law firm with more than 900 attorneys in major cities nationwide serving clients across a wide range of practices and industries. Office Safety. A: The most common expenses employers offer reimbursement for are equipment (e.g., additional monitors, printers), office supplies, and a portion of the employee’s monthly Internet bill and/or mobile device data plan. Remote work expenses traditionally have not been reimbursable under (You may choose to reimburse for bunny slippers if you wish.). When allowing employees to work from home, employers should have a comprehensive telecommuting policy. Nonetheless, California law requires employers to maintain records of non-exempt employees’ work hours, and pay them overtime premium wages for any hours worked over eight in one day, over forty in one week, or any hours on a seventh consecutive day during a workweek. We were paying existing remote employees internet bills in full that they would put in through Concur for reimbursement. Thankfully, there are some software programs and apps available that ease the burden of keeping track of remote non-exempt employees and their time worked. It seems to be easier and requires less admin work to approve a monthly/recurring internet expense. I recently published a short article in the California Labor & Employment Law Review that addresses an employer’s obligations to reimburse employees for expenses they incur while working remotely (i.e. Over the last few years, California has led the way in efforts to gain reimbursement for employees of many different work-related expenses. But before employers allow their employees to be homebodies, there are several issues to consider. As the pandemic stretches on, some businesses remain remote because of necessity, while others are considering the many advantages of a remote workforce. California employers must reimburse you for … Having built its reputation on providing premier workplace law representation to management, the firm has grown to include leading practices in the areas of government relations, healthcare and sports law. New Cal/OSHA Emergency Regulation to Protect Workers from Wildfire Smoke, Attention California Employers! California Labor Code section 2802 requires employers to reimburse employees for “all necessary business expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Before the pandemic, business expenses were usually limited to costs such as business travel or personal car mileage because workforces were operating within offices. In addition, the IT Division will also provide reimbursement toward a portion of an employee’s Home Internet access expenses. Cal/OSHA Issues Notice of Emergency Regulation for Electronic Submission of CY 2017 Form 300A by December 31, 2018, San Francisco’s 10-Day Travel Quarantine Order Tells Holiday Travelers to Stay Home, Though Santa Likely Excepted, Cal/OSHA Approves Emergency Temporary COVID-19 Standard, Asked and Answered: Updates on California’s Pay Data Reporting Law, Not So Happy Thanksgiving? Finally, remember that California’s expense reimbursement law only applies to expenses that are “necessarily” incurred in direct consequence of the job duties or in complying with an employer’s directions. Labor Code section 3600 states that an employer is liable “for any injury sustained by his or her employees arising out of and in the course of the employment.” Liability for an injury sustained by an employee while working at home is no different than if the employee had sustained the injury while working in the corporate office. For instance, employees who use a personal cell phone to make work-related calls should be reimbursed for at least a percentage of their cell phone bill, though it can be tricky to determine what percentage of calls were necessary for work and what percentage were personal calls unrelated to work. Home Sweet Home Office: Considerations With Remote Employees, Calling All Employers Who Use An Outside Salesforce, The Road Less Traveled: Reimbursing Employee Vehicle Expenses Through Increased Compensation Can Make All The Difference. Accidents happen while working, and they can just as easily occur at a home office or remote working location. 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