When you look at the laws applicable to your jurisdiction, check specifics on when your employees must be reimbursed. Adopt or reiterate, as applicable, a written policy requiring all workers, including those working from home, to record all hours worked, Encourage non-exempt workers to work their regularly scheduled hours (e.g., 9 a.m. to 5 p.m.) and instruct managers to try not to communicate requests for work to non-exempt employees outside regularly scheduled hours. There are a number of laws and regulations that require employers to reimburse expenses that employee incur … COVID-19, Work-from-Home Policies, and Maintaining Wage and Hour Compliance, 2021 Minimum Wage Increases Set to Take Effect, California Court of Appeals Concludes That California Wage and Hour Laws Extend to Offshore Workers, Time Is Money: A Quick Wage-Hour Tip on … Predictive Scheduling Laws, California Court of Appeal Rules That the FAAAA Does Not Preempt State’s Controversial Independent Contractor Test, Proposition 22 Passes in California, Further Narrowing AB5 –, employment, labor, and workforce management. While the basic distinction is that reimbursements are un-taxed and compensation is taxed, in practice things are more complicated. When employees pay for work related expenses, the employer has no obligation to pay them back. Please note, use of this product requires a Motus app subscription. during the coronavirus outbreak, be aware that certain state laws require extra pay. An Employer’s Duty to Reimburse. (There are exceptions like when expenses cause employees to fall below minimum wage.) Mileage reimbursement in California is required. Motus is pleased to provide an offering that can help your company navigate these new workplace needs. In addition, have non-exempt workers agree in writing that they will use the firm-recommended software to document time spent working. Do we have the technology to support them? Employers sometimes slip a “choice-of-law” provision in their contracts that says the labor laws of the employer’s home state will govern the employment … work-from-home due to COVID-19), the employer likely does not have an obligation to reimburse the employee for costs associated with such an arrangement — even in states that have laws requiring reimbursement of certain expenses (see below). For more information, visit www.ebglaw.com and subscribe to our email lists. In order to maintain exempt status, an employee must perform exempt work as his or her “primary duty.”  While federal regulations do not strictly quantify the term “primary duty,”  federal law views time spent as a significant factor, and California law views time as integral to that state’s exemption standard. Remote work expenses traditionally have not been reimbursable under California law because telecommuting and remote work opportunities are not mandated by the employer, as many companies have optional work-from-home programs that are at the … An employee can refuse to work from home, but unless the employee has an agreement in writing or a contract that provides he or she is not obliged to work from home, the employer may add this as a new requirement. This list would include phones, phone service, internet service, computers and/or tablets, and any communications or home office expenses that are required. California law requires employers to provide "a healthful and safe" work environment even when employees are working from home. For mobile phone and internet, for example, an employer must be able to show that the reimbursement reasonably related to needs of the business and was reasonably … (E.g., for every $100 of taxable stipend, $38 is lost to taxes employee and employer.) Motus Releases 2021 Predictions on Remote Work, Vehicles, Drivers and Business DevicesÂ, BYOD, CYOD and COPE: Differences, Drawbacks and Benefits, Arriver Services: The Rise of Services Delivered to Your Doorstep, The Importance of a Cost of Living Comparison, Vehicle Depreciation in 2020: How the Pandemic Has Affected the Auto Industry. Emergencies include those that threaten the safety of employees or a cessation of operations or serious damage to the employer’s property. There is no exception to … As employees continue working from home during the Coronavirus/COVID-19 pandemic, California Labor Code section 2802, which requires employee reimbursement for all necessary expenses incurred while completing work duties, operates to ensure employers who fail to provide … As Chief Legal Officer, Danielle is responsible for all Motus legal affairs and works with strategic business units to drive initiatives that bolster IRS and legal compliance for Motus clients. The Legislature’s intent is that employees should not bear losses or expenses incurred in the service of their employers. with Distinction from Stanford Law School and is a graduate of Brown University (Phi Beta Kappa, Magna Cum Laude). Adopt or reiterate, as applicable, a written policy prohibiting unauthorized overtime, strictly monitor for compliance with that policy, and impose discipline for any violations. Fixed and Variable Rate Program with Motus Mileage Capture App Saves Time and Money, Leveling the Playing Field: Recruit Top Talent With a Better Mileage Reimbursement Program, What's Your Fleet Really Costing You? In California, for example, employers are obligated to reimburse employees for all “necessary expenditures or losses” the employees incur in carrying out their job duties. Remote workers have the same rights as those who work in traditional offices, though some … For mobile phone and internet, for example, an employer must be able to show that the reimbursement reasonably related to needs of the business and was reasonably calculated not to exceed the expenses the employee actually incurred. As the number of U.S. states reporting cases of COVID-19 coronavirus increases, many employers are imposing mandatory work from home (“WFH”) policies to mitigate risk of contamination and ensure business continuity. However, federal regulations provide that an “emergency” does not include “events that are not beyond control or for which the employer can reasonably provide in the normal course of business.”  As a general rule, exempt employees performing non-exempt work on a prolonged basis will jeopardize the exemption. 2. How to Optimize Your Investment and Cut Costs, Creating Tax Solutions Through Business Vehicle Technology: A Medical Device Company Reduced Its Fica Tax by Almost $500,000, If it doesn't load, you can fill out the form here. We use cookies on this website to enhance your browser experience. California labor laws require employers to reimburse employees for all losses and expenditures that are a direct consequence of an employee’s work duties. 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