Can I be reimbursed for business calls made from my personal cell phone? According to a recent California court decision – yes. Employers in the state of California may wish to review their reimbursement policies following a decision from a California appeals court. In its decision, the court held that employers in California must reimburse employees for business calls made on employees’ personal cell phones.
The Recent Court Decision
In the court case, the plaintiff, a customer services manager for a food delivery company, sued his former employer on his behalf and filed a class action on behalf of other employees for the employer’s failure to reimburse them for business calls made on their personal cell phones.
In an earlier decision, the trial court disagreed with the class action because it said that such a case depended on too many individual issues, such as the type of plan or whether an individual paid for his or her cell phone.
The appeals court disagreed, stating:
“We hold that when employees must use their personal cell phones for work-related calls, Labor Code section 2802 requires the employer to reimburse them. Whether the employees have cell phone plans with unlimited minutes or limited minutes, the reimbursement owed is a reasonable percentage of their cell phone bills.”
The appellate court wrote in it decision that it was irrelevant whether an employee had unlimited minutes or actually paid his or her own cell phone bill because, “[t]o show liability under section 2802, an employee need only show that he or she was required to use a personal cell phone to make work-related calls, and he or she was not reimbursed.”
What is Labor Code Section 2802?
California Labor Code section 2802, which requires an employer to indemnify employees for all business-related expenses.
After this court’s decision, it appears that this law applies to employer reimbursement for business calls made by employees on their personal cell phones, even if the cell phone plan has unlimited calling.
How will employers reimburse employees?
Employers may wish to update their cell phone and reimbursement policies in light of the recent court decision. Employers may choose one of the following options for cell phone reimbursement:
- Update policies to make cell phone calls reimbursable expenses. How the company determines the method of reimbursement may vary, although the process may be cumbersome with many employees on different cell phone plans. According to the court’s decision, if the actual cost of the call cannot be determined, employers should reimburse employees a “reasonable percentage”.
- Employers who regularly require their employees to use a cell phone for work may consider providing employees with cell phones for business. This will avoid having to calculate the reimbursement amount each month.
- Employers who determine that cell phones are not needed by employees may update their policies to provide that personal cell phones should not be used for work purposes.
Are you experiencing trouble at work?
It’s not always clear to employees if their employer is complying with the law. Sometimes, it takes an experienced employment attorney to advise you on your current employment situation. The attorneys at Beck Law P.C. have years of experience dealing with all types of employment law issues, including discrimination, wrongful termination, wage and hour matters, and many other problems that arise in the workplace.
If you have a labor and employment law matter you wish to discuss, please contact Beck Law P.C. at 707-576-7175 to speak to a Santa Rosa labor – employment attorney and make an appointment for a confidential consultation.