Calculate unreimbursed work expenses your employer must pay under Labor Code 2802. Cell phone, mileage, home office, and more.
Labor Code 2802
2024/2025 IRS Rates
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Enter Your Expenses
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Employment Period
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Cell Phone
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Internet / Home Office
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Mileage
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Equipment / Tools
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Other Expenses
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Parking, tolls, postage, professional memberships, etc.
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Waiting Time Penalty (LC 203)
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For Terminated Employees Only
If you were terminated (fired or quit) and your employer failed to reimburse expenses with your final paycheck, you may be entitled to waiting time penalties of up to 30 days' wages under Labor Code 203.
Hourly rate x 8 hours, or your daily salary
Daily rate = hourly x 8
Reimbursement Calculation
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Enter your expenses and click "Calculate Reimbursement" to see your results
Understanding California Expense Reimbursement
California has one of the strongest employee expense reimbursement laws in the nation. Under Labor Code 2802, employers must reimburse employees for all necessary expenses incurred as a direct consequence of performing their job duties.
Why This Matters
If you use your personal cell phone for work calls, your own car for business errands, or your home internet for remote work, your employer is legally required to reimburse you. This isn't optional - it's California law.
Common Unreimbursed Expenses
Cell phone bills - Work calls, texts, emails, and apps
Internet service - Especially for remote workers
Mileage - Driving for client visits, errands, deliveries
Home office costs - Rent, utilities for dedicated workspace
Reasonable amounts: You can claim the reasonable portion of expenses used for business
No separation required: You can claim while still employed
Interest applies: Employers owe 10% annual interest on unpaid reimbursements
Documentation helps: Keep receipts and records, but reasonable estimates are often accepted
Labor Code Section 2802(a)
"An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties..."
California Labor Code 2802
California's expense reimbursement law is found in Labor Code Section 2802. Here's what it says and what it means for you:
The Full Text
Labor Code Section 2802
(a) An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful.
(b) All awards made by a court or by the Division of Labor Standards Enforcement for reimbursement of necessary expenditures under this section shall carry interest at the same rate as judgments in civil actions. Interest shall accrue from the date on which the employee incurred the necessary expenditure or loss.
(c) For purposes of this section, the term "necessary expenditures or losses" shall include all reasonable costs, including, but not limited to, attorney's fees incurred by the employee enforcing the rights granted by this section.
What "Necessary Expenditures" Means
California courts have interpreted "necessary expenditures" broadly to include any expense that:
Is required or reasonably expected by the employer
Benefits the employer's business operations
Would not have been incurred but for the job
The "Reasonable" Standard
You don't need to show the employer explicitly required the expense. If using your personal phone or car was reasonably necessary to do your job effectively, you're entitled to reimbursement.
Interest on Unpaid Expenses
Under LC 2802(b), unpaid expense reimbursements accrue interest at the legal rate of 10% per year. Interest starts from the date you incurred each expense, not from when you demanded payment.
Attorney's Fees
If you have to sue to recover expenses, LC 2802(c) allows you to recover your attorney's fees. This makes it economically feasible to pursue even moderate-sized claims.
Types of Reimbursable Expenses
Cell Phone
If you use your personal phone for work - calls, texts, email, Slack, or any work app - you're entitled to reimbursement. Calculate this by:
Monthly phone bill × estimated business use percentage × months employed
Be reasonable: if you make 2 hours of work calls daily, that's significant business use
Internet Service
Remote workers are entitled to internet reimbursement. The calculation is similar to cell phone - monthly cost × business use percentage × months working remotely.
Home Office Space
If you have a dedicated home office, you may claim a proportionate share of rent/mortgage based on:
Square footage of office / total home square footage
This percentage × monthly rent × business use percentage × months
Mileage
Business mileage (not regular commuting) should be reimbursed at least at the IRS rate:
2024: $0.67 per mile
2025: $0.70 per mile
This covers gas, wear and tear, insurance, and depreciation.
Professional memberships: Required industry associations
Parking and tolls: For business travel
Postage and shipping: Work-related mailings
Frequently Asked Questions
Having receipts strengthens your claim, but they're not always required. Reasonable estimates based on your records (bank statements, phone bills, mileage logs) are often sufficient. The key is being able to demonstrate the expense was work-related and reasonable.
Yes! Unlike waiting time penalties, Labor Code 2802 has no separation requirement. You can submit expense reimbursement requests while still employed. In fact, the law contemplates reimbursement "at the time the employee incurs the expense" or within 30 days.
Employer policies cannot override California law. If an expense is "necessary" for your job under LC 2802, your employer must reimburse it regardless of what their policy says. A policy limiting reimbursement to certain categories is unenforceable to the extent it conflicts with the statute.
The statute of limitations for LC 2802 claims is generally 3 years (under Code of Civil Procedure 338). However, if the failure to reimburse was part of an intentional scheme to underpay employees, it could be 4 years under the UCL. Act promptly to preserve your rights.
Generally, no. Your regular commute from home to your primary workplace is not reimbursable. However, travel from your primary workplace to other work locations (client sites, meetings, etc.) IS reimbursable. If you work from home and are required to go to the office occasionally, that travel may be reimbursable.
Yes. Labor Code 2802(c) specifically allows recovery of attorney's fees incurred in enforcing your reimbursement rights. This means even moderate-sized claims can be economically viable to pursue with an attorney, since the employer will likely have to pay your legal costs if you prevail.
Such waivers are generally unenforceable. Under Labor Code 2804, employees cannot waive statutory rights provided by the Labor Code. Any agreement purporting to waive LC 2802 reimbursement rights would likely be void as against public policy.
Be reasonable and document your reasoning. For cell phones, consider: How many work calls/texts do you make daily? How much time do you spend on work email/apps? For internet, consider: How many hours per week are you working from home vs. personal use? There's no magic formula - just be honest and consistent.
Related Demand Letters
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