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Employees should not have to pay out of pocket to do their jobs. When employers shift business costs onto workers, whether for remote work equipment, mileage, tools, uniforms, or required materials, it can significantly reduce take-home pay. In some cases, these practices violate state wage laws and may even push compensation below minimum wage thresholds.
At James Hawkins APLC, we represent employees in California and Washington who have been denied lawful reimbursement for work-related expenses. When these policies affect groups of employees, a class action may be the most effective way to recover compensation and hold employers accountable.
Business expense violations occur when employers fail to reimburse employees for necessary costs incurred in the course of performing their job duties. These expenses often include:
As remote and hybrid work arrangements have become more common, reimbursement issues have increased. Many employees now use personal internet, cell phones, and home office equipment to perform their job functions. If those costs are required for work, they may be legally reimbursable depending on state law. Employers sometimes assume small recurring expenses will go unnoticed. Over time, however, these costs can add up to hundreds or thousands of dollars per employee.
Federal law does not broadly require employers to reimburse business expenses unless failing to do so effectively reduces an employee’s pay below minimum wage under the Fair Labor Standards Act (FLSA). However, state laws can provide stronger protections.
California has one of the most robust expense reimbursement statutes in the country. Employers are required to reimburse employees for all necessary expenditures incurred in direct consequence of performing their duties. This includes reasonable percentages of personal cell phone and internet bills when used for work purposes.
Washington law similarly protects employees from wage deductions and may require reimbursement when business costs are unlawfully shifted to workers. State wage protections also prevent employers from passing certain operating costs onto employees.
Because reimbursement obligations vary depending on the nature of the expense, the employment agreement, and the state in which you work, a careful legal analysis is essential.
Business expense violations are rarely isolated. They typically result from standardized company policies or unwritten expectations that apply to entire departments or workforces.
For example:
A company may require all employees to work remotely without offering internet reimbursement.
Field employees may be required to use personal vehicles without adequate mileage compensation.
Workers may be instructed to purchase tools or materials upfront without repayment.
Employees may be required to use personal devices for business communications without reimbursement.
When reimbursement policies, or the lack of them, are implemented company-wide, many employees are affected similarly. This creates the potential for a class action claim.
When multiple employees are subject to the same unlawful reimbursement practice, the matter may qualify as a class action under state law or a collective action under federal law, depending on the circumstances. A class action allows similarly situated employees to pursue reimbursement together. This approach:
Employers often assume that individual employees will not challenge relatively modest monthly expenses. However, when dozens or hundreds of employees experience the same unreimbursed costs, the total liability can be substantial.
Unreimbursed business expenses effectively reduce an employee’s earnings. In some cases, they may push compensation below the minimum wage. Even when they do not, the financial strain can be significant, especially for lower-wage workers or those required to incur recurring expenses.
Beyond the financial impact, these practices raise broader concerns about fairness and accountability. Employers are responsible for the costs of operating their businesses. When they shift those costs to employees, they may be violating wage laws designed to protect workers. Holding employers accountable not only helps recover compensation but can also lead to improved policies that benefit current and future employees.
At the Law Office of James Hawkins APLC, we approach business expense reimbursement claims with detailed analysis and strategic planning. Our team begins with a confidential consultation to understand your role, your employer’s policies, and the expenses you have incurred.
We review payroll records, reimbursement policies, employment agreements, and communications to determine whether violations have occurred. If multiple employees have been impacted by the same practice, we evaluate whether a class action is appropriate.
If a class action proceeds, our firm:
We represent employees throughout California and Washington and analyze claims under all applicable federal, state, and local laws to ensure no avenue of recovery is overlooked. Our goal is not only to recover compensation but to ensure employers do not continue shifting unlawful costs onto their workforce.
If you believe your employer has failed to reimburse necessary business expenses, consider:
Because wage-related claims are subject to statutes of limitation, prompt action can help preserve your right to recover compensation.
If you and your coworkers are paying out of pocket to perform required job duties, you may have grounds for a class action claim related to business expenses. Employers should not reduce your effective wages by transferring business expenses onto you.
The Law Office of James Hawkins APLC represents employees in California and Washington in complex wage-and-hour class actions. Contact us for a confidential consultation. Let our team review your situation, explain your rights, and help you move forward with clarity and confidence.
Call Us Today (949) 387 – 7200
Yeah they’re great 
Nice people and they found things apart from wrongful termination