California labor code section 2802 requires that all employment related expenses be covered by the employer. This means that any tools, equipment, supplies and uniforms that the employee purchases which are necessary in order complete their work must be paid for by the employer.
Labor Code Section 2802:

a) 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, even though unlawful,
unless the employee, at the time of obeying the directions, believed
them to be unlawful.
(b) All awards made by a court or by the Division of Labor
Standards Enforcement for reimbursement of necessary expenditures
under this section shall carry interest at the same rate as judgments
in civil actions. Interest shall accrue from the date on which the
employee incurred the necessary expenditure or loss.
(c) For purposes of this section, the term “necessary expenditures
or losses” shall include all reasonable costs, including, but not
limited to, attorney’s fees incurred by the employee enforcing the
rights granted by this section.

The most commonly overlooked expense is mileage. If your employer requires you to use your own vehicle for company uses they should be reimbursing you for those miles. Currently, the IRS recommends a rate of .55 cents per mile. Keep in mind this is a guideline and if your employer is not reimbursing the entire .55 cents per mile you may be able to collect the difference with the help of an employment attorney or with the help of a tax professional during tax time.

Be wary of an employer that tells you it is part of your job, and your regular pay covers the expenses, or if an employer makes you feel like it is expected now that you are a manager or any other job title. You may be told it’s not very far so you should just be a team player. However, 5 miles every single day to go to the bank or to another company location can add up quickly.

Another reimbursable expense that is often done incorrectly is for uniforms. The company should provide to you any special items that they require. If these items have any of the following characteristics it’s likely that you should be reimbursed if you have paid out of your own pocket:

• If you are required to buy the item directly from your employer.
• If the item must be a specific brand name or have a company logo on it.
• If the item is a specialized garment designed specifically for your industry, ie. bullet proof vest

Labor law is complex; if you have any questions regarding your employment it is recommended that you contact UELG today. We can help you understand your rights, and in many cases will review your situation without charge.

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California vacation pay rules are among the most stringent in the United States. California labor law provides that both vacation pay, once earned, cannot be taken away. In other words, it is illegal for employers to institute a “use it or lose it” policy. It is not required that your employer have a vacation policy, however, if they do have one it must comply with California labor law.

A prominent case in California labor law is Wal-Mart Stores Inc. Wage and Hour Litigation, filed in the U.S. District Court in the Northern District of California. This particular case is separate from Walmart’s 2008 payment of $640 million  to settle 63 federal and state class-action lawsuits which also alleged numerous wage and hour violations.

Below is the pertinent part of California labor law that applies to vacations:

California Labor Code Section 227.3:

Unless otherwise provided by a collective-bargaining agreement, whenever a contract of employment or employer policy provides for paid vacations, and an employee is terminated without having taken off his vested vacation time, all vested vacation shall be paid to him as wages at his final rate in accordance with such contract of employment or employer policy respecting eligibility or time served; provided, however, that an employment contract or employer policy shall not provide for forfeiture of vested vacation time upon termination. The Labor Commissioner or a designated representative, in the resolution of any dispute with regard to vested vacation time, shall apply the principles of equity and fairness. The full statute can be found here

Probation Periods and Caps

It is permissible for your employer to implement a probationary period for which employees do not earn any vacation time. The employer can select the length of time that employees must wait to begin to earn vacation time. It can be one month, three months, or 1 year or actually any period of time the employer selects. This law applies to the employee’s vacation once it begins to be earned.

Your employer may also place a cap on the amount of vacation you can earn without taking it. For example, an employer can allow you to earn three weeks of vacation without taking it, but not allow you to accrue anymore with using some of your accrued vacation.  This policy is legal since it is not a  “use it or lose it” policy. In other words, an employer can place a cap on vacation that is earned, but they cannot take away vacation that is already earned if you do not use it. Another legal policy, is if an employer requires that the vacation pay be “cashed out” or paid out after, for example, one year.

Other Vacation Policy Issues

Once an employee leaves employment all vacation pay that has accrued must be paid out at the time of separation of employment. Many employees call vacation time by many names. Floating holidays, gift days, PTO (paid time off) are some common names. However, regardless of the name placed on vacation time, if the employee can use this time for personal reasons, at the convenience and without restriction, this time is actually vacation time.

What is and What is not Vacation Time?

Holidays and sick pay are not vacation time. The main reason this type of leave is not considered vacation time is that they are subject to restrictions i.e. Taking a sick day only when you are actually sick. Sick days not used in a specified period of time according to company policy, are not required to be carried over by an employer. This practice is legal. If, however, the employer groups vacation and sick days together into some sort of PTO policy or general leave plan, all of this time is considered vacation time and cannot be forfeited

A very important distinction that is commonly missed by both employers and employees is that vacation time is accrued in a pro-rata fashion.  For example if an employer provides 6 vacation days per year, this means that each month an employee would accrue ½ of a vacation day and each week 1/8 of a vacation day. Any policy whereby an employee earns a lump sum of vacation at the end of a year, for example, would be illegal. Each pay period that you work, would allow you to accrue a pro-rata share of vacation.

If you feel that you have not been paid the proper amount of vacation upon separation of employment or if your employer is currently depriving you of the correct amount of California vacation pay, it is important to talk to a California employment lawyer at once.

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California labor laws are designed to give employees certain assurances. For instance, if you are terminated, laid off or quit your job, your employer must pay you for all of your time worked and cash out all of your unused vacation time within 24-72 hours of your last day. If they do not do this properly, California labor laws impose penalties on the employer for every day they are late.

Termination/ Laid off

If you are terminated or laid off your final pay, including your vacation pay or PTO, is owed to you within 24 hours of termination. If you are owed commissions your employer can pay those out to you on the regularly scheduled date without penalty. Sick time is not required by law to be paid out  monetarily .

Quit

If you are quitting and you give your employer 72 hours of notice or more, they must follow the same guidelines as above and pay you within 24 hours. If you quit without giving your employer at least 72 hours of notice, your employer has 72 hours from the time they are notified of your resignation to give you all of your final wages and any unused vacation/ PTO

The following 3 things will likely not be included in your final pay:

1. Commissions that are regularly not due yet. If they are usually set to be paid at a later date the company can pay you at that time. I.E. Quarterly payouts, after month end, etc.
2. Reimbursable expenses that are regularly not due yet. If they are usually set to be paid at a later date the company can pay you at that time. I.E. 30 days from the date the employees turns them in.
3. Sick time- sick time is not required by law to be cashed out to employees; only PTO or vacation is due.

Penalties

If your final pay is not received in a timely manner the employer must pay the employee 1 day’s worth of wages for every day they are late, up to 30 days. There are various ways to calculate what 1 days worth of wages are.  For examples please visit the following DLSE FAQ

Labor law is complex; if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.

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