| Have you ever spent money for work and thought it | | | | required to list the rate of reimbursement used, as well |
| was coming back to you on your next paycheck, but it | | | | as the amount of miles being reimbursed. |
| didn’t? That has happened to many employees. | | | | A recent case in which a California employer was |
| Find out what your labor attorney already knows! If | | | | taken to court over reimbursing employees for |
| you can spare 60 seconds, here are 3 ways to put a | | | | business expenses involved a marketing company |
| stop to this and always get your expenses | | | | which employed outside sales representatives to sell |
| reimbursed. | | | | its products. The sales representatives were required |
| Step 1: Keep Good Records as advised by your labor | | | | to drive the personal automobiles to perform their |
| attorney | | | | tasks and were paid a higher base salary (overtime |
| Records and receipts are critical to proving up your | | | | pay) and commission rates to compensate for auto |
| expenses whether they are reimbursed immediately or | | | | expenses. As a result, a group of outside sales |
| have to be compelled through a lawsuit. | | | | representatives sued the company, charging that |
| Step 2: Review Your Employee Handbook | | | | Labor Code Section 2802 (this requires employers to |
| Check out your handbook and see if it addresses | | | | identify employees for all required expenditures |
| reimbursements. If it does write a letter for | | | | incurred in performing a task) gave the company a |
| reimbursement in accordance with the handbook and | | | | right to reimburse them for actual auto expenses or at |
| submit it with your receipts, of course retaining copies. | | | | a per-mile rate, and increased salaries or commissions |
| Step 3: Additional Correspondence. | | | | (overtime pay) were not a lawful alternative. |
| With the help of a California Labor Attorney, send a | | | | A California Court of Appeal took the |
| demand for your expenses and have him cite the | | | | employer’s side finding that overtime law in |
| California Labor Law. Sue them if necessary if they will | | | | California doesn’t preclude an employer from |
| not pay or start a class action case if there are | | | | paying commission or an increased salary (overtime |
| enough employees not being paid back their expenses. | | | | pay) in lieu of reimbursement for actual auto expenses |
| As per California Overtime Laws, in 2005, a California | | | | or even a reasonable mileage rate (as long as the |
| Court of Appeal stated that employers are allowed to | | | | increased compensation is sufficient to cover the |
| increase their employees pay in place of providing | | | | employee’s costs. The California Supreme |
| travel reimbursements as long as there is a mutual | | | | court stepped in to review the decision, in accordance |
| agreement between the employer and employee. | | | | with California Overtime regulations. The court still has |
| However, many employees still argue that they should | | | | to look at whether an employer complies with its duty |
| receive overtime pay or reimbursement for travel. | | | | under the Labor Code section 2802 to identify its |
| Additional Notes: With this overtime law, there are a | | | | employees for expenses they may incur in the |
| few new responsibilities required of employers. | | | | discharge of the duties by paying the employees more |
| Employers will be required to provide their employees | | | | wages or commissions, as opposed to reimbursing |
| with an itemized statement in writing that explains the | | | | them for the actual expenses under California |
| calculation of the mileage reimbursement or overtime | | | | Overtime. |
| pay. Under California Labor Law Overtime, employers | | | | If you are a California employee and believe you are |
| will also be required to include the starting and ending | | | | owed Overtime or your employer has violated your |
| of the time period for which the mileage | | | | rights, take action now and talk to an Experienced |
| reimbursement check was delivered. They will also be | | | | California Labor Attorney. |