You know that employees are entitled to reimbursement for work-related expenses. You’ve set up policies and procedures for
employees to report expenses and request reimbursement.
But what if employees don’t follow your rules? According to a recent federal District Court opinion, that doesn’t matter: They’re still
entitled to be reimbursed.
400+ pages of state-specific, easy-read reference materials at your fingertips—fully updated! Check out the Guide to Employment Law for California Employers and get up to speed on everything you need to know.
Former RadioShack employee Richard Stuart filed a class action lawsuit against the company claiming that he and other employees were not
reimbursed for all work-related expenses. RadioShack contended that Stuart and the other employees failed to follow internal company procedures
for requesting reimbursement, including company deadlines for timely requests. As a result, the company argued, the employees waived their right
to reimbursement.
The court rejected the employer’s arguments, holding that employee expense reimbursement rights can’t be waived. The court also held that so long as an employer knows, or should know, that employees are incurring work-related expenses, it is the employer’s duty to take affirmative steps to ensure that employees are reimbursed.
Finally, the court noted that other than the statutory limitations for filing lawsuits, an employee’s right to reimbursement does not expire.
We’ll have more on this case, and what it means for your policies and procedures, in an upcoming issue of California Employer Advisor.