Most employers would not be happy if their employees did not have cell phones, yet few employers offer to pay for their employees’ cell phone. In Cochran v. Schwan’s Home Services, Inc. the California Court of Appeals examined whether, under federal wage, hour, and overtime law, an employer is required to reimburse an employee for the expense of mandatory use of a personal cell phone for work purposes, or whether an employer is only required to reimburse the employee for expenses he or she would not have otherwise incurred absent the job. The court held that a partial reimbursement is always required. [Read more…] about Wage Hour And Overtime Law: Must Employers Pay For Cell Phones?
Wage and Hour Law
In an effort to save money, employers sometimes use reimbursements for expenses as a means to supplement the hourly wages of their hourly employees. These expenses include things such as rent for a home or apartment, travel to and from the workplace, cell phones, internet service charges, meals, and student loan payments. Employers provide these reimbursements instead of paying employees a higher wage in order to save money on taxes. Employers also do not factor in these reimbursements when calculating your overtime wages, paying you only 150 percent of your normal hourly wage. If you receive regular reimbursements for expenses, your employer may owe you additional overtime wages. Your employer may also be putting you in a difficult situation with the Internal Revenue Service. [Read more…] about Our Lawyers Explain How Reimbursements for Expenses May Actually Be Wages