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Law Is Unclear on When Expenses Must be Paid

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Q How long does a company have to reimburse employees for business expenses? My company takes from one to six months.

Is it obligated to pay interest on this money? Please advise what action, if any, employees can take to get reimbursed.

--M.S., Glendale

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A There is no clear-cut answer.

Under California law, employers are required to reimburse employees for work-related expenses incurred in performing the employee’s job (including employee expenditures for business use of a personal automobile, cell phone or computer).

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Unfortunately, the law does not say when the reimbursement must be made.

The California labor commissioner, who enforces this law, requires that an employer reimburse business expenses within a “reasonable” time. While I suspect that more than a month would be unreasonable, the only way to find out would be to file a complaint with the labor commissioner or a lawsuit.

Beginning Jan. 1, however, employees will be entitled to recover interest from the date the expense was incurred, if the labor commissioner or the court rules in their favor. In addition, employees would be entitled to recover their attorneys fees if their lawsuit is successful.

--Joseph L. Paller Jr.

Union, employee attorney

Gilbert & Sackman

If you have a question about an on-the-job situation, please mail it to Shop Talk, Los Angeles Times, P.O. Box 2008, Costa Mesa, CA 92626; dictate it to (714) 966-7873, or e-mail it to shoptalk@latimes.com. Include your initials and hometown. The Shop Talk column is designed to answer questions of general interest. It should not be construed as legal advice.

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