Are there any minimum amounts required for expense reimbursement?

No. California law does not set minimum reimbursement amounts.

Labor Code Section 2802 requires employers to reimburse all necessary expenses incurred in the course and scope of employment but does not define specific amounts.

The key question is whether the expense was incurred within the course and scope of employment. Employers are generally liable for expenses that are reasonably related to their business operations.

Employers are not liable if an employee substantially deviates from their duties, such as engaging in reckless or unlawful conduct. However, expenses related to an employee’s comfort, convenience or health while working may still be covered.

Common reimbursable expenses include mileage, travel and meals. Employers should carefully evaluate reimbursement policies to ensure they reflect actual costs.

Using standard rates (such as the IRS mileage rate) is generally acceptable, unless it does not fully reimburse the employee’s actual expenses.

Employees may recover unpaid expenses for up to three years and may also recover interest and attorney’s fees.

Section 2802 does not specify when reimbursements must be paid, but employers should process them promptly.

Read about Expense Reimbursement in the HR Library.