An issue that is arising more and more lately for HR consultants, is the use of smart phones. It is common for employers through their HR Departments to either require or suggest that their employees have smart phones in use during the workday. There are a number of reasons for doing so, including scheduling, recording hours worked, ordering materials, coordinating with other employees and dealing with vendors. Additionally, apps are being provided to the cell phones to facilitate the work.
The question then arises as to what extent a company is required to reimburse the usage cost for such cell phones.
Fortunately, there is a case directly on point in California. In Cochran v. Schwan’s Home Service (2014) 228 Cal.App.4th 1137, employees brought a class action against the employer after there had been a denial of reimbursement for the expenses to the use of their smart phones.
The first issue was whether the employer is required to pay employees for the initial cost of purchasing the cell phone itself. The case described no such requirement. In fact, it was not even mentioned as an issue in the case.
The next and final issue was to what extent is the reimbursement for the cell phones use. The case made it clear the company is only required to pay the monthly service or data plan, based upon the percentage of use for business by the employees. So for example, if the monthly plan is for $50 and the employees use the cell phone 50% of the time, the reimbursement would have to be $25 per month.
This is also in compliance with various labor code sections which require employees to be reimbursed for business expenses. For example, in California, this is codified in Labor Code Section 2802.
So be mindful of the fact there must be reimbursement. An alternative is to give a reasonable stipend each month for employees. Not the precise and actual cost of the cell phone usage, but a reasonable approximation that would apply to all employees. If you have any questions in this regard, please contact us as we provide HR consulting to employers.
www.HRconsulting.network can act as your virtual HR Independent Consultant. Our consulting services include: 1) acting as your virtual Human Resources department, 2) assisting your existing HR department personnel, 3) giving advice to other HR consultants or 4) simply providing outsourcing information to anyone interested in HR matters. And, we are equipped to prepare any documents required. Examples include: termination notices; warnings; counseling reports; progressive discipline procedures; write-ups; employment/confidentiality/noncompete agreements; employee handbooks; responses to employee demands; responses to wage and hour, overtime, rest/meal breaks, retaliation and hostile work environment disputes; memos to management; complaint investigations and reports; separation and severance agreements; settlement and release agreements; responses to sexual harassment claims; responses to discrimination claims; arbitration procedures (preparing a binding arbitration agreement, responses and other paper work, scripts and declarations for testimony, representatives to appear at hearings) and help with language used in your emails and communications with employees. Services can be on a retainer basis, hourly or flat fee. Our HR consultants have 20+ years’ experience in HR consulting. Or, simply give us a call for a free initial consultation. (800) 995-9434 (Ext. 1). Or email our parent company (attention Cliff): Info.NationalLienLaw@gmail.com.
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