California Employee Expense Reimbursement: What Your Employer Must Pay

Legal Guides · Updated October 2026

Does your employer have to reimburse your work expenses in California? Yes. California law requires employers to repay employees for necessary costs of doing their jobs, including mileage, personal cell phone use and remote work expenses. Here is what is covered and how to recover unpaid amounts.

On this page: The law · Common expenses · Not covered · How to get reimbursed · Misclassification · FAQ

The Law: Labor Code Section 2802

California Labor Code section 2802 requires employers to reimburse employees for all necessary expenditures or losses incurred in direct consequence of doing their jobs. The idea is simple: the cost of doing business belongs to the business, not to the employee.

Two features make this law unusually strong. First, employees cannot waive it. An agreement or policy that says you will cover your own work expenses is not enforceable. Second, employees who recover unpaid expenses can also recover interest and reasonable attorney fees.

Commonly Unreimbursed Expenses

Driving your own car for work

If you use your personal vehicle for work, other than your normal commute, your employer must reimburse the reasonable costs, including gas, wear and tear, maintenance and insurance. Most employers reimburse mileage at the IRS standard rate. They may use a different method, such as a car allowance, but it must fully cover your actual costs. Delivery drivers, sales representatives, home health workers and technicians are frequently underpaid on mileage.

Personal cell phone

If your employer requires or expects you to use your personal phone for work calls, texts, apps or email, it must reimburse a reasonable percentage of your phone bill. California courts have held this applies even if you have an unlimited plan and your bill did not go up.

Remote and hybrid work costs

Employees required to work from home may be entitled to reimbursement for a reasonable share of home internet and phone service, and for equipment and supplies needed to do the job, such as a computer, monitor or printer, if the employer does not provide them.

Uniforms, tools and equipment

Required uniforms, and safety equipment, generally must be provided or paid for by the employer. Tools and equipment required for the job are often the employer’s responsibility as well, with limited exceptions for some highly paid employees who customarily supply their own hand tools.

Travel, training and other costs

Work travel, required training or certifications, parking at client sites and similar costs incurred because of the job are typically reimbursable.

What Is Usually Not Reimbursable

• Your normal commute between home and your regular workplace
• Expenses that were not necessary or reasonable for the job
• Personal expenses unrelated to work

How to Get Reimbursed

1. Track your expenses. Keep a mileage log, save phone bills and receipts, and note which costs were for work.
2. Submit them through your employer’s process, and keep a copy of what you submitted.
3. If reimbursement is refused, you can file a claim with the Labor Commissioner or bring a lawsuit. When many employees are affected, unreimbursed expenses are often part of a PAGA claim or class action.

Claims for unreimbursed expenses generally must be brought within three years, and sometimes up to four years when paired with an unfair competition claim. Unpaid expenses owed at the end of employment should be included in your final paycheck.

Independent Contractor Misclassification

Workers who are wrongly classified as independent contractors often absorb thousands of dollars in vehicle, phone and equipment costs. If you are actually an employee under California’s ABC test, you may be entitled to reimbursement for those costs, along with other wage protections. See employee misclassification.

Related: unpaid wages and overtime and retaliation.

Frequently Asked Questions

Does my employer have to pay for my cell phone in California?

If you are required to use your personal cell phone for work, your employer must reimburse a reasonable percentage of the bill, even if you have an unlimited plan.

Does my employer have to pay mileage in California?

Yes, for work-related driving in your personal vehicle other than your regular commute. Many employers use the IRS standard mileage rate, but any method must fully cover your actual costs.

Do remote employees get reimbursed for internet?

If you are required to work from home, you may be entitled to reimbursement for a reasonable portion of your internet and phone costs and for necessary equipment.

Can I agree to pay my own work expenses?

No. The right to reimbursement under Labor Code 2802 cannot be waived, so such an agreement is not enforceable.

How far back can I claim unreimbursed expenses?

Generally three years, and in some cases four years when combined with an unfair competition claim.

This guide provides general information about California law as of October 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Every situation depends on its facts, so speak with a lawyer about yours.