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Determining Company Liability For Employee Expenses: You May Be Surprised

The scope of an employer’s liability for expense reimbursement is a subject of debate in many jurisdictions. Often the requirement for reimbursement depends upon the status of an employee: almost always a company must reimburse all employees for business-related travel expenses, but what about personal PDA use by a senior manager?  Further, is reimbursement necessary when the employee has not incurred additional cost for the business use of her personal electronic device?  If so, to what extent?  The answer to these questions depends upon where you do business and where your employees work, and may surprise you.  For instance, California courts have held that even where an employee incurs no additional cost for business use of a personal mobile phone (that is, where the employee has an unlimited data plan) the employer MUST provide some level of reimbursement to the employee.

Employee Ally Law

Ally Law member firms are experienced in employment and benefits law. Please consult an attorney at an Ally Law member firm for a review of your current reimbursement policies to assure they conform to local and federal law so as to avoid costly lawsuits and penalties.  For more information about our services in this area, contact us at yourally@ally-law.com.

Article by Rich May, PC.