California Issues Additional Guidance on What Pay Data Reports will Require, The State of California and Many California Localities Are Set to Increase the Minimum Wage on January 1, 2021 – Make Sure You Are Ready. In this regard, there may be uncertainty about whether employers are required to reimburse employees for expenses incurred to perform remote work. Today’s technology allows many employees to work nearly as well in their pajamas at home or in their jeans at a local coffee shop as they can dressed up at the office. A: The most common expenses employers offer reimbursement for are equipment (e.g., additional monitors, printers), office supplies, and a portion of the employee’s monthly Internet bill and/or mobile device data plan. For a company whose budget can stretch, th… Accidents happen while working, and they can just as easily occur at a home office or remote working location. The complicated question is, “how much reimbursement should be provided for the use of home internet or personal cell phones?” Unfortunately, unlike the IRS guidance on mileage, no similar measure exists for the use of technology. D. Telework or remote work costs must be consistent with the employee’s work requirements and telework or remote work agreement. The Department of Industrial Relations (“DIR”) reiterated this requirement in its recent guidance related to reopening. Labor Code section 3600 states that an employer is liable “for any injury sustained by his or her employees arising out of and in the course of the employment.” Liability for an injury sustained by an employee while working at home is no different than if the employee had sustained the injury while working in the corporate office. For example, California allows an employee up to three years to submit a reimbursement request. By making sure your remote employees have access to your software or timekeeping system on their remote devices, you can accurately track and monitor your remote employees’ daily and weekly hours worked. If you need assistance with ensuring compliance with remote work statutes or developing policies to manage a remote workforce, please contact a Jackson Lewis attorney to discuss. Internet and Cellular Service. As employees continue teleworking, employers should familiarize themselves with the requirements for reimbursement under California law. However, reimbursement may not be required when an employer provides devices to employees, even if the employee ultimately elects to use their own personal device. However, several states (including California, the District of Columbia, Illinois, Iowa, Massachusetts, Montana and New York) have specific state law requirements applicable to employee expense reimbursements. Remote work expenses traditionally have not been reimbursable under These are the most commonly provided items, with laptops/MacBooks more popular than clunky desktop computers that can’t be taken offsite or into the office if needed. When allowing employees to work from home, employers should have a comprehensive telecommuting policy. Remote employee expenses: Staying compliant with state, federal … This law applies regardless of where the employee works. While this arrangement may not be viable for every employer, allowing employees to work from home or other locations of their choosing has enabled employers to reduce overhead expenses while boosting employee morale. Now, employers must consider an expanded view of business expenses as employees remain at home. Finally, employers should consider developing policies for the use of personal devices for work and reimbursements. And while OSHA generally doesn’t inspect home offices as it does with traditional workplaces, employers must still track work-related injuries that occur with remote workers. Generally, the burden is on the employer to make sure employees are getting reimbursed for business-related expenses. If paying a percentage of the bill, employers should explain the calculation method to employees when they receive the Businesses can avoid lawsuits under Section 2082 by simply providing their employees with internet and cell phones and reimbursing employees for mileage driven at the IRS reimbursement rate. An employer generally complies with section 2802 by either reimbursing a given expense or providing the employee with the equipment necessary to ensure that the employee does not incur the expense in the first place. Source If management is requiring a remote worker to travel outside the area where they reside, whether that be a company office or other location, then many companies treat it as a business trip for that employee and reimburse all incurred expenses. An exception might be made if the worker only teleworks due to adverse weather or a personal appointment (waiting for a plumber, for example). When remote workers travel to an office location they may incur expenses such as transportation, meals and accommodation. Additionally, any California business with one or more employees must carry worker’s compensation insurance. In March 2020, many employers suddenly found themselves managing a mostly remote workforce due to COVID-19. Office Safety. Remote work arrangements raise various policy issues, including reassignment of official worksite, pay, and reimbursement for travel. But before employers allow their employees to be homebodies, there are several issues to consider. Employees Telecommuting During Public Health Crisis May Be … New Cal/OSHA Emergency Regulation to Protect Workers from Wildfire Smoke, Attention California Employers! Tracking non-exempt employees’ time on the clock becomes increasingly more difficult if they work remotely, since their supervisors obviously cannot consistently see when work is being performed. Employers should be cognizant of this potential risk and have policies in place that ensure, to the extent possible, that an employee’s workspace is free from potential hazards, including loose Legos and hedge trimmers. And in one case, a court found that an employee was entitled to workers’ compensation benefits when he sustained injuries trimming his hedges while on call. Insight & Commentary on California Workplace Law Issues & Developments. Remote work can help organizations recruit new employees with hard-to-find skillsets, or retain current employees who move due to spouse relocation or other life events. Similarly, Illinois requires reimbursement of all “necessary expenditures or losses” an employee incurs within the scope of employment that are “directly related to services performed for the employer,” unless the employer has a written reimbursement expense policy and the employee fails to comply with that policy. An unsettled question is what remote work expenses incurred by the remote employee be paid ... use of home internet/WiFi, use ... should notify HR so that the employee’s expenses can be reviewed and a determination made as to whether additional reimbursement is owed. California Labor Code section 2802 requires employers to reimburse employees for “all necessary business expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Before the pandemic, business expenses were usually limited to costs such as business travel or personal car mileage because workforces were operating within offices. Working from home? What Makes California Employment Law Different ... and How to Deal With It. Here’s what may be included in your company’s remote work policy, based on some of the most common remote work reimbursement questions: Who pays for the work equipment? Nonetheless, an employer must still encourage employees to take their meal and rest breaks in accordance with the company’s legally compliant meal and rest break policy that applies to all non-exempt workers. Named the “Innovative Law Firm of the Year” by the International Legal Technology Association, the firm’s commitment to client service and depth of expertise draws clients to Jackson Lewis for excellent value-driven legal advice. Although the current situation is a far cry from business as usual, California companies must nonetheless follow the state’s labor laws, including those governing meal and rest breaks for … Reimbursement Obligations. (You may choose to reimburse for bunny slippers if you wish.). IRS: You can reimburse remote employees for internet access According to the Occupational Safety and Health Administration (OSHA), small business owners are responsible for providing employees with safe work environments. Over the last few years, California has led the way in efforts to gain reimbursement for employees of many different work-related expenses. Cal/OSHA Approves Temporary COVID-19 Standard, Fall Into Handbook And Policy Update Season, ERISA & Employee Benefits Litigation Blog, Workplace Safety and Environmental Law Alert Blog. California employers must reimburse you for … Other necessary or emergency expenses, when approved in writing by Purchasing and Accounts Payable. It seems to be easier and requires less admin work to approve a monthly/recurring internet expense. Expense Reimbursement for Employees Working Remotely - Cook … The statute and courts only indicate a reasonable reimbursement is required. 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