On August 12, 2014, the California court of appeal issued a sweeping decision that may spark a new wave of class action lawsuits against California employers. In Cochran v. Schwan's Home Service, Inc., the appellate court determined that employers must reimburse employees for work-related phone calls made on personal cell phones or face liability—potentially on a class-wide basis. Under California Labor Code section 2802, employers must reimburse employees for necessary expenditures incurred in performing their duties. Now, at least a portion of an employee's personal cell phone bill may constitute an expenditure covered by section 2802.
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