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If you had required your employees to work from home, there is a good chance you would have had to reimburse them for their expenses. In that you merely allowed them to work from home, it is less likely that a court would require you to reimburse them for those costs.
Nevertheless, since this specific issue has not yet been addressed by an appellate court in California, we recommend you consult with legal counsel before denying the reimbursement to your employees.
Although you may be legally entitled to deny the reimbursement, it may simply be in your company’s best interest to give your employees a little latitude in this area.
Read about Expense Reimbursements in the HR Library.