11/20/2009

You know that employees are entitled to reimbursement for work-related expenses. You've set up policies and procedures for employees to report expenses and request reimbursement.

But what if employees don't follow your rules? According to a recent federal District Court opinion, that doesn't matter: They're still entitled to be reimbursed.

How much can it really cost your business if you don't properly pay employees for work-related expenses? Find out by joining us on Dec. 3 for the 90-minute webinar: Employee Expense Reimbursements in California: Best Practices for Avoiding Wage/Hour Claims

Former RadioShack employee Richard Stuart filed a class action lawsuit against the company claiming that he and other employees were not reimbursed for all work-related expenses. RadioShack contended that Stuart and the other employees failed to follow internal company procedures for requesting reimbursement, including company deadlines for timely requests. As a result, the company argued, the employees waived their right to reimbursement.

The court rejected the employer's arguments, holding that employee expense reimbursement rights can't be waived. The court also held that so long as an employer knows, or should know, that employees are incurring work-related expenses, it is the employer's duty to take affirmative steps to ensure that employees are reimbursed.

Finally, the court noted that other than the statutory limitations for filing lawsuits, an employee's right to reimbursement does not expire.

We'll have more on this case, and what it means for your policies and procedures, in an upcoming issue of California Employer Advisor.

Knowing Expense Reimbursement Rules Will Help Avoid Lawsuits

Starbucks recently paid a reported $3 million to settle a class action lawsuit alleging its travel expense policy violated state wage-and-hour laws. The majority of the workers claimed they regularly used their personal vehicles to perform work-related duties but were allegedly told that Starbucks had a policy of not reimbursing for mileage. This settlement proved to be a costly lesson for the Seattle-based coffee purveyor — and a wake-up call for employers everywhere.

Travel-related expenses aren't the only hot-button issue these days. New York-based fashion retailer Polo Ralph Lauren Corp. recently paid $1.5 million to settle a lawsuit alleging it required workers to wear clothes with distinctive designs without reimbursing them for what they claimed constituted uniforms. Also, the U.S. Department of Labor's Wage and Hour Division issued an opinion letter earlier this year on whether an employee would have to pay out-of-pocket to replace a uniform damaged while he was off the clock.

It's real-life issues like these that come up time and time again for employers grappling to understand whether they're in compliance with the laws governing reimbursements. Plus, in California, the state Labor Code only heightens your responsibilitie — and potential liabilities — in this area.

Join us on Dec. 3 for an in-depth 90-minute interactive webinar all about the legal pitfalls surrounding employee expense reimbursement practices. Our expert — an experienced California labor and employment attorney — will explain how you can insulate your organization from liability stemming from your employee reimbursement practices. You'll learn:

• The legally acceptable ways you can reimburse employees for the business-related use of their personal vehicles


• The travel-related expenses, such as meal and lodging, you must reimburse for, and when you'll also owe employees for "incidental expenses" related to business travel


• When you must reimburse employees for uniforms and whether you have to reimburse them for laundering their work clothes


• Whether you can require employees to wear a certain type of clothing — but not an actual uniform — without reimbursing them for their purchases


• If you can legally increase an employee's wages or commissions instead of reimbursing them for actual expenses


• When employees may not be eligible for reimbursement for tools or equipment


• How to draft your handbook and employment policies so you're in compliance with the Fair Labor Standards Act and IRS regulations

Register now »

Find out more »

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