Blogs

California law requires employers to reimburse their California employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” During the pandemic, the number of California employees working remotely increased significantly, leaving most employees to use their personal cell phones and internet to perform their job duties while at home. Employers that fail to reimburse remote workers for work-from-home expenses can face significant liability.  

In July 2023, the U.S. District Court for the Northern District of California began reviewing a motion seeking approval of a $950,000 settlement with a retail giant that covers 6,893 current and former employees who were required to work from home during the pandemic and use their personal internet. The lawsuit was filed in March 2022. Each class member would receive a minimum of $10. The additional settlement sum covers attorneys’ fees of $285,000 and also $30,000 total in PAGA penalties, with $22,500 going to the California Labor and Workforce Development Agency and $7,500 getting split among the class members.  

On Friday, July 28, the judge granted a preliminary approval of the settlement motion and set a hearing date in January 2024 to determine the fairness of the settlement and attorneys’ fees. 

This settlement serves as an important reminder to employers that remote California employees who use their personal devices and equipment to perform work for their employer in California must be reimbursed for those remote work expenses. Employers that have questions about their obligations under California law to reimburse their remote employees can contact the California Legal Services department at CAinfo@employerscouncil.org.