ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

Saturday, February 23, 2008

Higher Wages Can't Count as Reimbursement

A_11 California employers and their employees cannot agree to a system under which the worker gets a higher wage and pays his or her own business expenses, according to a recent decision by the state supreme court.  The California Labor Code requires employers to reimburse all expenses that employees incur in the course of their work.  Many employers have tried to deal with this rule by offering higher salaries or by offering lump-sum payments to workers.  But the recent decision in Gattuso v. Harte-Hanks Shoppers, Inc., makes that very difficult to do, according to a recent client advisory by Laura P. Worsinger and Chad C. Coombs of Los Angeles’s Buchalter Nemer PLC.

[Frank Snyder]

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