California Court of Appeal Issues Expansive Expense Reimbursement Ruling

A California Court of Appeal recently issued a decision in Cochran v. Schwan’s Home Services, Inc., B247160 (Aug. 12, 2014) that took an expansive view of an employer’s obligation to reimburse employees’ business expenses. The trial court determined that no expense was incurred, and no reimbursement owed, unless the employee had to pay something out of pocket, above and beyond the expense to maintain the employee’s cell phone for personal use. The appellate court disagreed, finding that an employer is obligated to reimburse an expense, even if the employee has incurred no additional cost associated with the business use of the phone. In light of this decision, employers should conduct a careful and wide-ranging review of their reimbursement policies and take a hard look at what actually happens “in the field.” – See more at: http://www.littler.com/wage-hour-counsel/california-court-appeal-issues-expansive-expense-reimbursement-ruling#sthash.PGeeYDVx.dpuf