EAC Update

June 8, 2020

The “stay at home” orders which have impacted most California employers will undoubtedly have long-lasting consequences.  One of the ramifications these orders have had is a change in the teleworking landscape.  In an office setting, it is understood that work essentials are provided by the employer and it is relatively easy to comply with Section 2802 of the California Labor Code, which requires employers to pay for "all necessary expenditures" workers incur in performing their jobs.  In addition, employees who choose to perform some work at home for their own convenience, and with the option of using Company office space and equipment, are typically not entitled to reimbursement for the expenses associated with working remotely.  However, with mandated telecommuting, those expenses are no longer optional, and the employer must take responsibility for necessary operating costs.   

It can sometimes be difficult to determine what qualifies as a reimburseable expense or the appropriate amount that should be paid.  For example, most people have previously existing home computers, internet access and phones paid for through a data plan.  Although the cost may not increase due to working from home, the employer is obligated to pay for a reasonable portion of that bill when an employee is required to work from home.  A monthly stipend is recommended to defray those costs.  

In addition, the employer and employee may not agree on what equipment is necessary for the employee to do the job from home.  Although certain equipment, or even furniture, must be acquired, the employee does not necessarily have to be given their choice of products; the employer can offer a range of acceptable choices.  

Equipment and other property purchased by the employer belongs to the employer.  If telecommuting is no longer necessary, or if the relationship terminates, the employer can decide whether the equipment or property must be returned to the Company.   This should be made clear at the time of purchase. 

Most importantly, employers and employees must be mindful that, while the dress code may be relaxed working from home, other workplace rules and standards still apply, including clocking in and out, taking appropriate meals and rest breaks, and observing Company policies such as the non-disclosure and protection of sensitive and confidential information and prohibiting harassment, discrimination and retaliation – whether in-person or remotely!!