California Expense Reimbursement Law (Labor Code 2802)

California's expense reimbursement law is Labor Code section 2802. It says an employer shall indemnify an employee for all necessary expenditures or losses the employee incurs in direct consequence of doing the job. In plain terms, if the job requires you to spend your own money, the employer has to pay you back.

Common examples include:

• Mileage and vehicle costs for driving your own car for work (not the ordinary commute).
• A reasonable share of your personal cell phone or home internet bill when the job requires you to use them.
• Required uniforms, tools, safety equipment, and work supplies.
• Home office costs for remote work that the employer requires.

Employers can reimburse actual costs, or use a reasonable method such as a per-mile rate, as long as it fully covers the real expense. Employees cannot waive these rights by agreement. The law also allows recovery of interest and attorney's fees, which makes group cases practical.

Section 2802 is a regular part of California wage class actions and representative claims under the Private Attorneys General Act. It matters especially for workers labeled independent contractors: if a delivery driver or trucker is found to be an employee, the company may owe years of unreimbursed fuel, insurance, and phone costs. See our pages on California wage and hour claims, independent contractor misclassification, and trucker unpaid wages.