CALIFORNIA LABOR LAWS AND
HOW YOUR ORGANIZATION
MAY BE AT RISK
California's labor laws are as complex and diverse as the state itself. Employers in the state are required
to follow California Labor Code Sec on 2802. Many interpret this sec on to mean virtually all expenses
incurred by employees in the course of their work must be reimbursed by an employer. If employers
don't reimburse completely and accurately, employees can sue for the balance, with interest and fees.
Mileage reimbursement is a key area for Sec on 2802 disputes. Many companies use cents-per-mile
or flat allowance reimbursement methods. Unfortunately, these approxima ons are frustra ng for
employers and employees alike. Employers want visibility and control over reimbursements. Employees
want to know that their actual expenses are being covered.
When expenses aren't tracked and reimbursed accurately, it opens the door to poten al problems and
li ga on costs down the road. This risk isn't limited just to companies doing business in California.
Other states already mirror some of the California legal language, and new rulings may accelerate the
spread of similarly stringent reimbursement policies.