Employers Get Break on Reimbursement of Employee Expenses

Some of the employment law specialty blogs have been quick to provide detailed coverage of Gattuso v. Harte-Hanks Shoppers, Inc., case no. S139555 (November 5, 2007), in which the California Supreme Court, reversing the Court of Appeal, holds that an employer may meet its statutory obligation to indemnify employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties” (Labor Code, Ā§ 2802, subd. (a)) by increasing the employees’ pay or commissions instead of separately reimbursing them for their actual expenses. There are conditions, naturally.

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