In this guide7 sections
California Labor Code §2802 requires your employer to pay you back for the necessary costs you incur to do your job, including work mileage, a personal cell phone you are required to use, and tools or equipment the job demands. It is one of the broadest worker protections in the Labor Code, and you cannot sign it away.
The money adds up quickly. If you drive 300 work miles a month and your employer pays nothing, you could be out roughly $228 a month at the IRS business rate in effect since July 1, 2026. At that rate, three years of unpaid mileage adds up to more than $8,000, before interest and attorney’s fees.
This guide walks through what §2802 actually says, who it covers, what counts as a violation, what you can recover, the deadlines, and where to file. For a practical checklist on phones, home internet and remote work, see our companion guide on expense reimbursement for cell phones and home offices.
- Labor Code §2802 requires employers to reimburse all necessary expenses and losses employees incur doing their jobs.
- Mileage, required personal cell phone use, required remote-work costs, tools and business travel are common reimbursable expenses.
- The statute sets no mileage rate; the IRS rate of 76¢ per mile (from July 1, 2026) is a common benchmark, not a legal mandate.
- You can recover the expenses plus interest and reasonable attorney’s fees, and §2804 voids any agreement to waive these rights.
- Most claims must be filed within three years; PAGA penalty claims have a one-year limit and require notice to the state first.
What Labor Code §2802 says
The core rule is in subdivision (a). An employer must indemnify an employee “for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” It also covers costs you incur by following your employer’s directions, even if those directions turn out to be unlawful, unless you believed at the time that they were unlawful.
In plain English, the statute has four parts:
- (a) The duty to reimburse. If a cost is necessary and flows directly from doing your job, your employer pays it, not you.
- (b) Interest. Any award by a court or the Labor Commissioner carries interest at the same rate as civil judgments, running from the date you paid the expense.
- (c) Attorney’s fees. “Necessary expenditures or losses” include “all reasonable costs,” including attorney’s fees you incur to enforce your rights under the section.
- (d) Labor Commissioner citations. The Labor Commissioner can cite an employer that fails to reimburse, and the amounts recovered go to the affected employee.
A neighboring section, Labor Code §2804, makes any agreement to waive these rights “null and void.” A clause in an offer letter or handbook saying you will cover your own work expenses does not override §2802.
Who §2802 covers
Section 2802 protects employees in California. It applies to private employers of every size; there is no minimum headcount. Full-time, part-time, hourly, salaried, commissioned and exempt employees are all covered. Being “exempt” from overtime does not make you exempt from reimbursement.
Workers labeled as independent contractors may be covered too. Under the ABC test in Labor Code §2775, a person who provides labor or services for pay is presumed to be an employee unless the hiring entity proves all three prongs of the test. If you were misclassified, you can seek reimbursement for the costs of the vehicle, phone, tools and supplies you were told to provide yourself.
Former employees can bring §2802 claims for expenses they paid while they were employed, subject to the deadlines below.
What counts as a violation
A violation happens when you pay a necessary, job-related cost and your employer does not fully reimburse it. The key words are “necessary” and “direct consequence.” The expense has to be reasonably required to do the work, not a personal choice or a convenience.
Common examples include:
- Mileage and vehicle costs for driving between job sites, to clients, on deliveries or on errands for the employer (ordinary commuting between home and your regular workplace is generally not reimbursable).
- Personal cell phones you are required to use for calls, texts, scheduling apps or two-factor logins.
- Home internet, phone and equipment when your employer requires you to work from home and you must use your own service or devices.
- Tools, safety gear and supplies the job requires, and business travel such as airfare, hotels and meals on the road.
- Losses that flow directly from doing your job, such as replacing employer-required equipment that is damaged in the course of work.
Mileage: the IRS rate is a benchmark, not a mandate
Section 2802 does not name a mileage rate. Many California employers reimburse at the IRS standard business mileage rate because it is a widely accepted measure of what driving actually costs. For travel from July 1 through December 31, 2026, that rate is 76 cents per mile (it was 72.5 cents for January through June 2026).
An employer can use another method, such as a flat car allowance or reimbursing actual costs, but the method has to fully cover your real, necessary expenses. If a flat allowance falls short, the employer generally owes the difference.
Cell phones and remote work
If you are required to use a personal cell phone for work, California courts have held that the employer must reimburse a reasonable percentage of the bill, even if you have an unlimited plan and your monthly cost did not go up. The same logic applies to required remote work: when the job cannot be done without your home internet or equipment, a reasonable share of that cost is a business expense.
💡 Example: Maria, a hypothetical field sales rep, drives 300 work miles a month from July through September 2026. At the 76-cent IRS rate, that driving costs about $228 a month, or $684 for the quarter. Her employer pays a flat $100 monthly car allowance, or $300 total. If the IRS rate reflects her actual costs, the shortfall is $384 for those three months, plus interest from the dates she paid.
Unreimbursed mileage, phone and equipment costs can add up to thousands of dollars. Get a free, confidential case review.
Remedies and penalties
When an employer violates §2802, you can recover:
- The unreimbursed expenses themselves.
- Interest from the date you incurred each expense, at the civil-judgment rate (§2802(b)).
- Reasonable attorney’s fees and costs to enforce your rights (§2802(c)).
Section 2802 does not set its own civil penalty amount. That matters for PAGA. Under the Private Attorneys General Act, Labor Code §2699(f) supplies a default penalty, generally $100 per aggrieved employee per pay period, for Labor Code provisions that do not specify one. A PAGA claim can seek those penalties for every affected coworker, after the required notice to the state.
Expense violations often travel with other problems. Employers that skip reimbursement may also be under-recording hours or issuing inaccurate pay stubs, which can lead to separate claims under the pay stub law and for off-the-clock work.
Deadlines and where to file
| Route | What it covers | Deadline (general rule) |
|---|---|---|
| Labor Commissioner wage claim | Unreimbursed expenses and interest | 3 years (Code Civ. Proc. §338(a)) |
| Civil lawsuit under §2802 | Expenses, interest, attorney’s fees | 3 years (Code Civ. Proc. §338(a)) |
| Unfair Competition Law claim | Restitution of unreimbursed expenses | 4 years (Bus. & Prof. Code §17208) |
| PAGA representative claim | Civil penalties for you and coworkers | 1 year (Code Civ. Proc. §340), plus written notice to the LWDA first |
A Labor Commissioner claim is free and does not require a lawyer, but it is limited to your own losses. A court case can include attorney’s fees under §2802(c) and can be combined with class or PAGA claims for coworkers. Our guide comparing a Labor Commissioner wage claim vs. hiring a lawyer explains the tradeoffs.
Because the three-year clock runs back from the date you file, every month you wait can cut off a month of recoverable expenses at the far end.
What to do now
- Keep records. Save mileage logs, phone bills, receipts and any messages requiring you to use your own car, phone or equipment.
- Submit expenses in writing. Follow your employer’s reimbursement process and keep copies of what you sent and when.
- Get your pay records. Request your payroll records and personnel file so you can see what, if anything, was reimbursed.
- Talk to a lawyer before the deadline. A short consultation can tell you whether a wage claim, lawsuit or PAGA notice makes sense.
Related Labor Code sections
- Labor Code §2804: any agreement to waive §2802 rights is void.
- Labor Code §2775: the ABC test that decides whether a “contractor” is really an employee entitled to reimbursement.
- Labor Code §226.8: bars charging willfully misclassified workers fees or deductions, such as equipment or space rental, that would be illegal for employees.
- Labor Code §2699: PAGA civil penalties, including the $100 default penalty.
- Labor Code §§226 and 1198.5: your right to see your payroll records and personnel file.
Frequently asked questions
Does California require employers to pay the IRS mileage rate?
No. Section 2802 requires full reimbursement of necessary costs, not a specific rate. Many employers use the IRS rate (76 cents per mile from July 1, 2026) as a reasonable measure, but a different method is lawful only if it fully covers your actual, necessary vehicle costs.
Do I get reimbursed for my cell phone if I have an unlimited plan?
Generally, yes. If your employer requires you to use your personal phone for work, California courts have held that the employer must pay a reasonable percentage of the bill, even when the work use did not increase your monthly cost.
Does my employer have to pay for my home internet if I work remotely?
If remote work is required and you need your own internet, phone or equipment to do the job, a reasonable portion of those costs is generally reimbursable. If working from home is purely your choice and the employer provides an office, the answer may be different.
Can my employer make me sign away reimbursement?
No. Labor Code §2804 makes any agreement to waive §2802 rights null and void, whether it is in an offer letter, handbook or arbitration agreement.
Can independent contractors claim expense reimbursement?
Only employees are covered, but many “contractors” are legally employees under the ABC test. If you were misclassified, you can seek reimbursement for the costs you were made to cover.
How far back can I recover expenses?
Generally three years from the date you file, or four years if the claim is brought under the Unfair Competition Law. PAGA penalties have a one-year limitations period and require notice to the state first.
Workers only. Never employers.
At Employees First Labor Law, we represent California workers only, never employers. Our team has recovered more than $200 million for our clients, and we prepare every case as if it is going to trial. We have offices in Pasadena, Irvine, Long Beach, Pomona, Riverside, Bakersfield and Fresno, and we serve workers throughout California. Meet our team.
If your employer made you cover mileage, phone, equipment or travel costs, we can review what you are owed under Labor Code §2802, plus interest, attorney’s fees and any PAGA penalties for you and your coworkers.
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This article provides general information about California law and is not legal advice for any specific situation. Reading it does not create an attorney-client relationship. Past results do not guarantee a similar outcome.
