The fast food chain Carl’s Jr. was sued this week in a class action brought by California managers who claim they were not paid for expenses incurred while driving for work-related purposes. The lead plaintiff claims that she regularly drove her personal vehicle to meetings, other restaurants and banks but was not reimbursed for mileage or other expenses. According to the lawsuit, company policy only provided for reimbursement of business-related mileage expenses for out-of-town travel. Other California companies have been hit with similar suits.
The California Labor Code provides that non-commuting mileage (e.g. a run to the bank during the work day) must be reimbursed by the employer if the employee is driving his or her own vehicle and the mileage is incurred in the discharge of the employee's duties. In fact, the law is quite broad:
An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer . . .
Arguably, this applies well beyond mileage to expenses to things such as cell phones, tools, computers, internet service and office supplies if they are used for work. Massachusetts has a similar law that requires reimbursement for all transportation expenses during the workday (not commuting).
Obviously, if your business operates in California or Massachusetts, you need to ensure that you are complying with these laws. If you are not in those states, do not assume you are immune to legal issues related to reimbursement for work day travel expenses. Employment agreements and policies provide potential pitfalls for employers in this area and could be the basis for contract and promissory estoppel claims. Also, there is always the possibility of inconsistent treatment with respect to reimbursement, which could lead to discrimination litigation.
With gas prices rising, companies may be considering cutting back on reimbursement. At the same time, employees may be especially sensitive to the cost of operating their vehicles. This strikes me as a recipe for employment litigation. It would be wise to review policies and practices in this area as soon as possible — summer may bring even higher gas prices.
Topics/Tags
Select- Labor & Employment Law
- Discrimination
- EEOC
- Employment Law
- Department of Labor
- Labor Law
- Title VII
- FLSA
- NLRB
- Workplace Violence
- Department of Justice
- Coronavirus
- Non-Compete Agreements
- Religion Discrimination
- Performance Improvement Plans
- Reasonable Accommodation
- Pregnancy Discrimination
- Department of Homeland Security
- Immigration and Customs Enforcement
- NLRA
- Foreign Nationals
- Immigration and Nationality Act
- Diversity
- National Labor Relations Board
- Wage & Hour
- Privacy
- Artificial Intelligence
- Inclusion
- LGBTQ+
- Employee Benefits and Executive Compensation
- Federal Trade Commission
- Overtime Pay
- FMLA
- Arbitration
- Workplace Accommodations
- Employment Litigation
- IRS
- Litigation
- Medical Marijuana
- Social Media
- Employer Policies
- Americans with Disabilities Act
- Disability Discrimination
- Retirement
- National Labor Relations Act
- Accommodation
- Sexual Orientation Discrimination
- Race Discrimination
- OSHA
- Employer Handbook
- ERISA
- ADAAA
- Medical Cannabis Dispensaries
- Unions
- Whistleblower
- ACA
- Affordable Car Act
- Employer Rules
- United States Supreme Court
- Sexual Harassment
- Technology
- Federal Arbitration Act
- Transgender Issues
- Disability
- 401(k)
- Employment Settlement Agreements
- Sixth Circuit
- Fair Labor Standards Act
- Equal Employment Opportunity Commission
- Benefits
- Paycheck Protection Program
- Gender Identity Discrimination
- Posting Requirements
- Class Action Litigation
- Disability Law
- E-Discovery
- Evidence
- Securities Law
- Preventive Care Benefits
- Environmental Law
- Family and Medical Leave Act
- Health Savings Account
- SECURE Act
- Privacy Laws
- US Department of Labor Employee Benefits Security Administration
- Representative Election Regulations
- Healthcare Reform
- Older Workers' Benefit Protection Act (OWBPA)
- Electronically Stored Information
- Telecommuting
- Affirmative Action
- Compensable Time
- Equal Opportunity Clause
- Occupational Safety and Health Administration
- Security Screening
- Supreme Court
- E-Discovery Case Law
- Electronic Data Discovery
- ESI
- Unemployment Insurance Integrity Act
- American Medical Association
- Attendance Policy
- Classification
- Fair Minimum Wage
- Federal Minimum Wage
- Misclassification
- Return to Work
- Seniority Rights
- State Minimum Wage
- Wage Increase
- Confidentiality
- Disability Leave
- Equal Pay
- Genetic Information Discrimination
- Media Policy
- National Origin Discrimination
- Retaliation
- Social Media Content
- Antitrust
- Employment Incentives
- HIRE Act
- Social Security Tax
- Taxation
Recent Posts
- More on Equal Opportunity: Executive Order Seeks to End Disparate Impact Liability to promote Equal Opportunity
- PIP This: The Expansion of Actionable Adverse Employment Decisions in the Wake of Muldrow v. City of St. Louis
- The Independent Contractor Tug-of-War: Navigating the Latest DOL Shifts
- ICE Raids and Audits – What’s an Employer to Do
- New Online Registration Requirements for Foreign Nationals
- Workplace Violence: Are You Taking Required Steps to Protect Your Employees?
- EEOC & DOJ New Guidance on DEI-Related Discrimination: What Does it Mean for Employers?
- EEOC Targets 20 Large Law Firms regarding DEI related Employment Practices
- Ohio Senate Bill 11: Key Provisions and Implications for Employers
- Shifting Burdens: Is McDonnell Douglas Past Its Prime?