The Road Less Traveled: Reimbursing Employee Vehicle Expenses Through Increased Compensation Can Make All The Difference

In addition to the numerous and often mind-numbing requirements placed upon employers in the Golden State, Labor Code Section 2802 requires that an employer “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.”  The most common employee “expenditure” seen by businesses relates to the use of an employee’s personal vehicle in connection with his or her job duties, such as driving a personal vehicle to an outside sales call.  

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