Work Expense Reimbursement in California: Mileage, Cell Phones, Home Offices and More

California law requires your employer to reimburse you for the necessary costs of doing your job, including mileage when you drive your own car for work, a reasonable share of your personal cell phone bill, and the costs of required remote work. The rule comes from Labor Code section 2802, and it is one of the strongest expense laws in the country.

Unreimbursed expenses add up quickly. A worker who drives 400 work miles a month in a personal car is owed about $290 a month at the 2026 IRS rate of 72.5 cents a mile. Over a year, that is about $3,480. If it went unpaid for the full three-year limitations period at the same rate, it would exceed $10,000, plus interest.

This guide covers what counts as a necessary expense, how mileage reimbursement works, the rules for cell phones and home offices, what you can recover, the tactics employers use to avoid paying, and the steps to take if you are paying out of pocket.

The rule: Labor Code 2802

Labor Code 2802(a) requires an employer to indemnify (pay back) its employees for all necessary expenditures or losses they incur in direct consequence of doing their jobs or following the employer’s directions. In plain terms: if the job requires you to spend money, your employer has to cover it.

A few features make the law especially protective:

• It can’t be waived. Any agreement to give up the right to reimbursement is void (Labor Code 2804). A policy saying “employees cover their own phones” doesn’t change the law.
• “Necessary” means reasonable. The question is whether the expense was reasonably necessary to do the job, not whether it was the cheapest possible option.
• Interest runs from the date you paid. Unreimbursed amounts carry interest from the date the expense was incurred (Labor Code 2802(b)).
• Attorney’s fees are included. An employee who recovers can also recover reasonable attorney’s fees and costs (Labor Code 2802(c)).

The law protects employees. If you are labeled an independent contractor but your work meets the employee tests, Labor Code 2802 can apply to you too. See our guide on the ABC test and contractor misclassification.

Key fact

Mileage reimbursement in California

When you use your own vehicle for work, your employer must reimburse the reasonable costs of that use: gas, insurance, maintenance, repairs, depreciation and wear. California law does not require one specific rate. In Gattuso v. Harte-Hanks Shoppers, Inc. (2007), the California Supreme Court held that an employer may reimburse vehicle costs in one of three ways:

1. Actual expenses: tracking and reimbursing the real costs of gas, maintenance, insurance and depreciation for the work miles.
2. A mileage rate: most commonly the IRS standard business rate, which is 72.5 cents per mile for 2026.
3. A lump sum or higher pay: a car allowance or increased wages, but only if the employer identifies what portion is reimbursement and it fully covers your actual costs.

The IRS rate is not a legal ceiling or floor, but it is the benchmark most employers and courts use. If your employer pays less than the IRS rate or a flat allowance, you can show that your actual costs were higher and recover the difference.

What miles count? Generally, your ordinary commute from home to your regular worksite is not reimbursable. Driving between job sites, to clients or customers, to pick up supplies, making deliveries, or traveling beyond your normal commute for an assignment generally is.

💡 Example: Daniel is a field technician who drives his own truck about 400 miles a month between customer homes. His employer gives him a $100 monthly gas card and nothing else. At the 2026 IRS rate, his work mileage is worth 400 × $0.725 = $290 a month, so he is short $190 a month, or $2,280 a year. If the shortfall continued for three years at that rate, it would total $6,840, plus interest and attorney’s fees.

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Cell phones: Cochran v. Schwan’s

If your employer requires you to use your personal cell phone for work calls, texts, apps or email, it must reimburse a reasonable percentage of your phone bill. In Cochran v. Schwan’s Home Service, Inc. (2014), a California Court of Appeal held that this duty applies even if you have an unlimited plan, someone else pays the bill, or the work use did not increase your monthly cost.

The reasoning is simple: your employer is getting the benefit of a device and service you paid for, and it cannot pass that cost on to you. What counts as a “reasonable percentage” depends on how much you use the phone for work. Many employers pay a fixed monthly stipend, which is lawful if it is reasonable for the actual work use.

Common examples include delivery and rideshare-style apps used for dispatch, two-factor authentication apps required to log in, scheduling apps, work email and group texts with supervisors, and calls to customers. If you can’t do your job without your phone, the phone is a necessary expense.

Remote work and home office costs

When your employer requires you to work from home, Labor Code 2802 follows you there. The Labor Commissioner has said that employees working from home must be reimbursed for necessary expenses, which typically include:

• A reasonable share of your home internet service.
• A reasonable share of your personal cell phone when it is used for work.
• Equipment and supplies needed to do the job, such as a computer, monitor, headset, printer, ink or paper, if the employer does not provide them.

Whether other costs, such as a share of electricity or office furniture, must be reimbursed depends on whether they are truly necessary for the work. The answer can also differ when remote work is entirely the employee’s choice and a fully equipped office is available. If your employer requires remote work and offers nothing toward your internet or equipment, you likely have a claim.

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Uniforms, tools and other common expenses

Expense	Generally reimbursable?	Rule
Driving your own car for work (not commuting)	Yes, often at the IRS rate	Labor Code 2802; Gattuso
Required use of personal cell phone	Yes, a reasonable percentage	Labor Code 2802; Cochran
Home internet for required remote work	Yes, a reasonable share	Labor Code 2802
Required uniform (distinctive design or color)	Yes, employer must provide and maintain it	Wage Orders § 9(A)
Hand tools customary in your trade	Only if you earn less than twice the minimum wage	Wage Orders § 9(B)
Travel, parking, tolls and meals on work trips	Yes, when necessary for the work	Labor Code 2802
Your normal commute	Generally no	General rule

Employers also cannot make you pay for ordinary business losses. Under the wage orders, an employer generally cannot deduct for cash shortages, breakage or lost equipment unless the loss was caused by your dishonest or willful act or gross negligence.

By the numbersThree years

How employers avoid paying, and why it often fails

• “It’s built into your pay.” Under Gattuso, an employer that claims wages include reimbursement must be able to show what portion is reimbursement, and that it was enough.
• “You never submitted a request.” If the employer knew or had reason to know you were incurring the expense, it generally has a duty to reimburse. A policy that discourages or ignores claims is not a defense.
• “Your phone plan is unlimited.” Cochran rejected that argument.
• “You agreed to cover it.” The right can’t be waived (Labor Code 2804).
• “You’re a contractor.” Labels don’t decide employee status; the legal tests do.

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How much you can recover and how long you have

You can recover the full amount of unreimbursed necessary expenses, interest from the date each expense was incurred, and reasonable attorney’s fees and costs. Claims under Labor Code 2802 generally must be brought within three years (Code of Civil Procedure 338), and up to four years under the Unfair Competition Law (Business and Professions Code 17208).

Because reimbursement policies usually apply to every worker in the same role, these claims are often brought as class actions or under the Private Attorneys General Act (PAGA), which allows civil penalties for Labor Code violations affecting other employees. Our wage and hour calculator can help you estimate your own share.

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What to do if you’re paying work expenses yourself

1. Track your work miles. Use a mileage app or a simple log with the date, start and end points, purpose and miles.
2. Keep your phone and internet bills and note roughly how much of your use is for work.
3. Save receipts for tools, supplies, parking, tolls, equipment and travel.
4. Save any written policy or message saying you must use your own car, phone or equipment.
5. Submit a written request for reimbursement and keep a copy of any response.
6. Talk to an attorney before signing any release. You can also file with the Labor Commissioner; see our comparison of wage claims versus hiring a lawyer.

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Expense violations are often the tip of the iceberg

Employers that push costs onto workers frequently cut corners elsewhere: unpaid time off the clock, missed meal and rest breaks, unpaid drive time between job sites, or treating employees as exempt or as contractors to avoid overtime. Drivers and field workers are especially likely to have several claims at once. Our wage and hour team looks at the whole picture.

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Frequently asked questions

Does California law require the IRS mileage rate?

No, but it is the most common method. Your employer can use a different method only if it fully covers your actual, reasonable vehicle costs for work driving.

Is my commute reimbursable?

Generally not. The normal drive between your home and your regular workplace is usually not a business expense. Driving between sites or to clients during the day usually is.

My employer pays a $25 phone stipend. Is that enough?

It depends on how much you use the phone for work. A stipend is lawful if it is a reasonable share of your bill for the work use. If you use the phone heavily for work, a small stipend may fall short.

Can I get reimbursed if I quit or was fired?

Yes. Your claim for past expenses survives the end of your job, generally for three years from when each expense was incurred.

Can my employer retaliate for asking for reimbursement?

No. Complaining about unpaid wages or expenses is protected activity under California law (Labor Code 98.6 and 1102.5).

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