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California Labor Laws and How They Put Your Organization at Risk

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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.

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