CSLB Law & Business ExamEmployment RequirementsMedium
A landscaping contractor requires an employee to use his personal truck to haul tools and materials between job sites but does not reimburse him for fuel, mileage, or vehicle wear. Under Labor Code Section 2802, what is the employer's obligation?
- ANo obligation exists because vehicle use is the employee's personal choice
- BReimbursement is required only if the employee submits a written claim within 30 days of separation
- CThe employer must reimburse the employee for necessary expenditures incurred in performing job duties
- DReimbursement is required only for employees earning at or below minimum wage
Show answer & explanationAnswer & explanation
Correct answer: C. The employer must reimburse the employee for necessary expenditures incurred in performing job duties
Labor Code Section 2802 requires employers to indemnify employees for all necessary expenditures or losses incurred in direct consequence of the discharge of their duties, including mileage and vehicle costs when personal vehicles are required for work.
Why the other options are wrong
- A. Employers cannot shift necessary business costs onto employees.
- B. No 30-day written claim requirement exists for this obligation.
- D. Reimbursement applies regardless of the employee's wage level.
Business Expense Reimbursement (Labor Code 2802)
Employers must reimburse employees for all necessary expenses incurred while performing job duties, including required use of personal vehicles or tools.
- Applies to mileage, tools, and other necessary work expenses
- Cannot be waived by employer policy
- Failure to reimburse can result in wage claims
Memory trick: If the job needs it, the boss pays for it.