Calif. Employers Gain Reimbursement Flexibility

Law360, New York (November 5, 2007, 12:00 AM EST) -- The California Supreme Court has ruled that employers doing business in the state may reimburse their employees’ business expenses by increasing their base salary or commission rates instead of separately reimbursing them for their actual expenses.

The ruling, handed down Monday by a seven-judge panel in Gattuso v. Harte-Hanks Shoppers Inc., concluded that an employer may satisfy its statutory reimbursement obligation by paying employees enhanced compensation in the form of increases in base salary or increases in commission rates, “provided there is a means or method...
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