Cell Phone Reimbursement Done Right
California employers routinely underestimate cell phone reimbursement. Labor Code section 2802 requires reimbursement for necessary business expenses, including personal cell phone use. The mistake is assuming the obligation only applies when use is substantial. It does not. Any work-related use can trigger reimbursement. A quick call, a text to a supervisor, or logging into a system from a personal device is enough. This is where liability starts to build. Unlimited Plans Do Not Eliminate the Obligation One of the most common missteps is relying on the idea that employees are not incurring additional costs. California law rejects that argument. The issue is not whether the employee pays more out of pocket. The issue is whether the employer has shifted a business expense to the employee. Even with an unlimited plan, employers must reimburse a reasonable percentage of the cost when personal phones are used for work. Policies Are Where Employers Get Into Trouble Many employers either ...