Employer must reimburse work-from-home expenses incurred during pandemic shutdown

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Employer must reimburse work-from-home expenses incurred during pandemic shutdown
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The California Court of Appeal recently ruled in Thai v.

International Business Machines Corporation that IBM had to reimburse its employees for Internet access and other computer-related expenses needed to perform their jobs from home while Gov. Gavin Newsom’s March 2020 shutdown order during the COVID-19 pandemic was in effect. IBM argued it had no responsibility for such expenses because the expenses resulted from a government mandate, not an IBM mandate.

The court rejected IBM’s contention the company could only be responsible for expenses it — and not the government — “directly caused” the employee to incur. The statute, said the court, is says no such thing. The court continued: “It may be true that the Governor’s March 2020 order was the ‘but-for’ cause of certain work-from-home expenses, but nothing in the statutory language can be read to exempt such expenses from the reimbursement obligation. Effectively, section 2802 allocates the risk of unexpected expenses to the employer….” That, said the court, is what the Legislature intended.

That court did not decide the full range of reimbursable costs employees may incur in “direct consequence” of the discharge of their duties. The court said future cases would address whether the employee alone may be responsible for “expenses that an employee was already incurring for personal reasons” before the shutdown order.This ruling comes as far more Californians work from home than before the pandemic.

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