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| Proposed Regulations Regarding Expense Reimbursement Issued by DLSE |
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Under Labor Code Section 2802, employers must indemnify employees for all “necessary” expenditures or losses. In an effort to provide more clarity, the DLSE has issued proposed regulations addressing mileage reimbursement for employee-owned and employer-owned vehicles, reimbursement for per diem and other travel expenses. Under the proposed regulations, the DLSE takes the position that simply paying increased compensation does not discharge the employer’s reimbursement obligations under Section 2802. Meanwhile, the California Supreme Court has agreed to review a case which raises the question of whether employer’s can pay increased compensation in lieu of reimbursing actual expenses. The regulations can be viewed in full through the DLSE website.
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