A silver lining in the midst of this pandemic is perhaps the appreciation of our advanced technology capabilities and pervasiveness of home internet, which not only connects us instantly via our phones and computers for social interactions, but also allows employees to work remotely. From a big picture perspective this reduces potential lawsuits for employers as they reduce the risk of employee exposure to the virus. However, The California Labor Code has very specific regulations for remote workers and what they are entitled to in the way of reimbursements, potentially exposing employers to violations of the Labor Code. Most of these considerations apply to workers who are mandated to work from home, versus voluntary remote workers, where the company has an onsite location that allows for a safe work environment.
When working at home, even if employers provide company issued computers, printers and other equipment, most employees are still using their personal cell phones, home internet and electricity. Obviously, these items are necessary to be able to work from home. Thus, Labor Code §2802 requires employers to reimburse employees for necessarily incurred by the employee in direct discharge of their duties for the employer. So, if it is necessary to use your home internet to connect to a work zoom meeting, your employer should be reimbursing you for a reasonable percentage for your home internet bill.
Some of these expenses can get confusing since an employee’s cell phone and home utilities are not exclusively used for work purposes. California courts have ruled that even if the business use of the personal property (i.e. a cell phone), does not cause the employee to incur a cost beyond their usual monthly rate, the employer is still responsible for reimbursement to the employee. Unfortunately, neither the Labor Commissioner nor the court provide the exact amount of expense reimbursement under Labor Code §2802, which leaves employers exposed to liability for a legal claim.
The best way for an employer to avoid this potential liability is to provide a monthly stipend for such expenses. The employer can provide a reasonable estimate in calculating the stipend amount, and in the same breath the employee can provide documentation showing why an estimated amount may be inadequate. The key here is communication between the employee and employer. Setting expectations of what the employee requires to create an efficient work space at home, what are necessary and reasonable expenses the employee can submit to the company, and the policy for submitting such expenses should be discussed and revisited throughout the tenure of the employee’s remote work status.
Many employers are seeing the benefit of having remote workers, with lower overhead and increased employee productivity in many situations, it’s hard not to see the positives. Consequently, in the same way employers should follow the Labor Code at the onsite workplace avoiding the headache of potential liability, employers should also seek the same compliance with employees working from home.