Think sending a quick text to your employee after hours is harmless? In California, even a single business-related ping on a personal phone could cost you big if you don't have a compliant reimbursement policy in place.
A recent article by Jilian Dimitt, VP of HR at Optima Office in Small Business Currents, breaks down California’s Labor Code 2802 and the costly consequences of noncompliance.
“I’ve seen countless businesses caught off guard by this one,” says Dimitt. “Even well-meaning employers don’t realize that everyday communication—like checking a work email—can trigger legal reimbursement obligations.”
If your employees use their personal phones for work calls, texts, apps, email, and GPS—you’re legally required to reimburse them. Thanks to California Labor Code Section 2802 and landmark court rulings like Cochran v. Schwan’s, businesses must cover a reasonable portion of employees’ mobile costs.
The penalties? Potential lawsuits, class actions, and up to four years of retroactive payouts. Real companies, such as Victoria’s Secret and Schwan’s, have paid millions for missing the mark.
The good news? It’s fixable. From flat stipends to percentage-based reimbursements, Dimitt offers actionable solutions that protect both your team and your bottom line.
Whether you manage five employees or fifty, now is the time to create or review your mobile reimbursement policy. Not just to stay compliant, but to show your team you respect their time, tools, and talent.
With remote work on the rise, a fair reimbursement plan is more than a legal safeguard. It’s a strategic advantage that supports retention, simplifies payroll, and ensures tax compliance.
Optima Office can help you get it done right the first time. Our HR experts specialize in building scalable, compliant policies tailored to your business.