California Employers Must Reimburse Remote Work Expenses: A Precedent with Potential Global Impact

As per a recent ruling by a panel of California’s Court of Appeal, employers in the state are now required to reimburse workers for expenses incurred due to COVID work-from-home arrangements. These expenses include, but may not be limited to, Internet access, telephone service, a headset, as well as computing necessities and associated accessories. This obligation has stemmed from the case of an employee, Paul Thai, who needed these resources to accomplish his duties for his employer.

In navigating the complications of remote work, this court decision provides a guideline for businesses. But as many employers globally have shifted to remote or hybrid models in response to the COVID-19 pandemic, this ruling could potentially have far-reaching effects outside of California.

Employers are advised to review and if necessary amend their remote work policies to ensure they are compliant with this recent court ruling. Also, they must keep a keen eye on similar proceedings in other jurisdictions.

Legal practitioners should keep a firm focus on this segment of the legal landscape. This includes not just corporate counsel but also law firms serving businesses ranging from startups to multinational corporations, as the precedent could inform judgements in their respective jurisdictions.

Employers, legal professionals, and workers alike may delve into the details of the ruling here.

The author of this article was Manatt, Phelps & Phillips, LLP, a well-recognized law firm with vast professional exposure.