What are Business Expenses?

Business expenses, sometimes referred to as out-of-pocket expenses, are any expenses incurred as a direct result of employment. The most common types of business expenses include:

  • Computer equipment
  • Cell phone and service
  • Fax equipment
  • Mileage
  • Tools and equipment
  • Uniforms

Should my employer reimburse me for business expenses?

California labor law requires that an employer fairly compensate an employee when they use their own money to purchase work related equipment or when they use their personal vehicle for work travel. An employee should not bear the cost incurred on behalf of their employer and must be reimbursed for their business expenses in addition to their regular wage.

What can I do if my employer owes me money for business expenses?

Some employers may avoid reimbursing their employees for their business expenses by making them sign an employer- employee agreement. An employer will still be held liable for bearing the cost of out-of-pocket expense regardless this agreement. Employers may face significant consequences for failing to fully reimburse their employees for necessary business-related expenses. If you believe your employer has not fully compensated you for your business expenses please call (866) 981-4800 or fill out the form on the right for a free consultation with one of our employment attorneys.