On January 1, 2023, the IRS mileage rate increased to 65.5 cents per mile for driving done for business purposes. This is a three (3) cent increase from the rate set for the second half of 2022. According to the IRS, this rate applies “to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles” and was calculated “based on an annual study
Expense Reimbursement
Employer Need Not Reimburse Travel Expenses for Drug Test
A federal appeals court recently affirmed a summary judgment entered in favor of WinCo Foods in a class action alleging that WinCo should have reimbursed successful job applicants for the time and travel expenses they incurred in obtaining a drug test as a pre-condition of employment. In Johnson v. WinCo Foods, LLC, the court agreed with a lower court that WinCo was not obligated…
Expense Reimbursement Claims Are Covered By Employment Practices Insurance
Southern Cal. Pizza Co. v. Certain Underwriters at Lloyd’s, London, 40 Cal. App. 5th 140 (2019)
Lloyds of London provided the employer in this case with an employment practices liability insurance (“EPLI”) policy, which contained an exclusion relating to “wage and hour or overtime law(s).” In this insurance coverage dispute, the employer alleged the policy exclusion is narrower in scope than Lloyd’s contended.
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PAGA Employee Can Obtain Contact Information For All Employees Statewide
Williams v. Superior Court, 3 Cal. 5th 531 (2017)
Michael Williams was an employee of Marshalls of CA in Costa Mesa, California. After slightly more than a year of employment, Williams brought a representative action against Marshalls under the Labor Code Private Attorneys General Act of 2004 (“PAGA”), alleging Marshalls had failed to provide its employees with meal and rest breaks, accurate wage statements,…
Court Properly Dismissed PAGA And Class Action Claims
Silva v. See’s Candy Shops, Inc., 7 Cal. App. 5th 235 (2017)
The Court of Appeal held that the trial court properly granted summary judgment to See’s Candy as to the class-certified claims for failure to properly pay wages as a result of the employer’s rounding and grace-period policies, based on expert testimony that employees were paid for all of their work under See’s…
Employer Was Entitled To Obtain Reimbursement Of Short-Term Employee’s Training Costs
USS-POSCO Indus. v. Case, 197 Cal. Rptr. 3d 791 (Cal. Ct. App. 2016)
Floyd Case voluntarily enrolled in a three-year, employer-sponsored educational program. Case agreed in writing that if he quit his job within 30 months of completing the program, he would reimburse his employer (UPI) a prorated portion of the program costs. Two months after completing the program, Case went to work for…
Trial Court Should Not Have Denied Class Certification to Employees Seeking Reimbursement for Cell Phone Charges
Cochran v. Schwan’s Home Serv., Inc., 2014 WL 3965240 (Cal. Ct. App. 2014)
Colin Cochran filed this putative class action on behalf of himself and 1,500 similarly situated customer service managers who were not reimbursed for expenses pertaining to the work-related use of their personal cell phones. The trial court denied class certification to the putative class based upon a lack of commonality because…
Certification Was Properly Denied In Class Action Seeking Reimbursement From Employer
Morgan v. Wet Seal, Inc., 210 Cal. App. 4th 1341 (2012)
Crystal Morgan and two other former employees sued Wet Seal because the company allegedly required employees to purchase Wet Seal clothing and merchandise as a condition of employment and also failed to reimburse employees for their mileage between Wet Seal business locations. The trial court denied class certification on the ground that common…
Nonexclusive Insurance Agent Was An Independent Contractor
Arnold v. Mutual of Omaha Ins. Co., 202 Cal. App. 4th 580 (2011)
Kimbly Arnold filed a complaint against Mutual of Omaha on her behalf and on behalf of a putative class of similarly situated “licensed agents” and “sales representatives” of the company, alleging violations of the California Labor Code, including provisions governing expense reimbursement of employees and timely payment of final wages to…
Employer Could Pay Employees Increased Compensation Rather Than Reimburse Them Separately For Expenses
Gattuso v. Harte-Hanks Shoppers, Inc., 42 Cal. 4th 554 (2007)
Frank Gattuso is an outside sales representative for Harte-Hanks, a California corporation that prepares and distributes advertising booklets and leaflets, including the PennySaver and the California Shopper. Rather than separately reimburse outside sales representatives for their automobile expenses, Harte-Hanks paid them higher salaries and commissions than it paid its inside sales representatives. Gattuso and…