Does my California employer have to pay for my home internet and phone?

If the expense is necessary to do your job, yes. Labor Code 2802 requires California employers to reimburse necessary work expenses, and the Court of Appeal applied it to personal phones in Cochran v. Schwan’s Home Service. Home internet follows the same logic, though I found no court that has ruled on it directly.

What does Labor Code 2802 actually say?

An employer must indemnify an employee for all necessary expenditures or losses the employee incurs in direct consequence of doing the job or following the employer’s directions. That is the whole test in subdivision (a): the cost has to be necessary, and it has to flow directly from the work.

Three other pieces matter in practice:

• Awards by a court or the Labor Commissioner carry interest at the civil judgment rate, per subdivision (b).
• Necessary expenditures include the attorney’s fees an employee incurs enforcing the right, per subdivision (c).
• An agreement that waives the right is void under Labor Code 2804, so a handbook line saying “employees bear their own costs” does not cancel it.

The Labor Commissioner lists unpaid expenses under Labor Code 2802 among the claims you can bring in a wage claim. The DLSE FAQ says the same in plain terms: an employee is entitled to reimbursement for expenses tied directly to the job.

Does my employer owe me for my personal cell phone?

Yes, a reasonable share of the bill, even if you were going to pay for the phone anyway. In Cochran v. Schwan’s Home Service (2014) 228 Cal.App.4th 1137, the court held that when employees must use personal phones for work, the employer must pay some reasonable percentage of the phone bill. It did not matter whether the plan was unlimited or whether the employee paid extra because of work calls.

The court left the exact percentage to the parties and the trial court. A reasonable approach starts with how much of your use is for work: calls with clients, texts from your manager, authentication apps your employer requires. Many employers settle on a flat monthly amount after reviewing a sample of bills.

Two details matter here. The court held reimbursement is required even when the employee already owned the phone or had an unlimited plan. And Labor Code 2804 voids any agreement to give up the right, so a signed acknowledgment that you will use your own phone does not end the employer’s duty.

What about home internet and a home office?

The same two questions apply, and the answers depend on your job. Was the internet connection necessary to do the work, and was the expense a direct result of the work? If you are expected to work from home and cannot do it without a connection, the cost looks necessary. If you have an office seat and choose to work from home some days, it looks less like a direct consequence of the job.

I want to be straight about the limits. I did not find a California appellate decision that rules on home internet or a home office the way Cochran rules on phones. What I am giving you is my reading of the statute and Cochran, not a settled holding. Furniture, a monitor or a headset your employer requires and does not provide fall under the same necessary-and-direct test.

A practical way to think about it: separate what your employer requires from what you prefer. A required video-call setup, a required secure connection or a required second monitor sits on the employer’s side of the line. A standing desk you wanted, or an upgrade to a faster internet tier for your own streaming, sits on yours. When the line is unclear, the reasonable move for both sides is to write down the work share and revisit it once a year.

Can an employer pay a flat stipend instead of actual costs?

Yes, if it covers what you actually and necessarily spend. In Gattuso v. Harte-Hanks Shoppers (2007) 42 Cal.4th 554, a mileage case, the California Supreme Court allowed a lump-sum payment if it is enough to fully reimburse actual, necessary expenses, and held that an employer folding reimbursement into salary or commissions must provide some method or formula to identify the reimbursement portion. If an employee shows the payment falls short of actual expenses, the employer must make up the difference.

So a $50 monthly stipend is fine until your real work share of the phone and internet bill is $80. At that point the gap is owed, and 2802 gives you a claim for it.

Stipends also have a tax side. Under IRS Publication 15, payments under an accountable plan are not wages, and an accountable plan requires a business connection, substantiation within a reasonable time and return of any excess. A flat payment with none of that is treated as wages, so withholding and payroll taxes apply. Federal law also suspends the deduction for unreimbursed employee expenses, and 26 U.S.C. 67 now has no end date for that suspension. A taxable stipend that does not cover your costs leaves you paying twice.

What should employees ask for, and what should employers put in writing?

If you are an employee, ask in writing. Say which expenses you incur for work, estimate the work share, and request reimbursement or a stipend that covers it. Keep copies of bills, and note the date you made the request, since that starts the record an attorney or the Labor Commissioner would want to see. If the answer is no, a wage claim with the Labor Commissioner is the next step, and an employment attorney can tell you whether the facts support more.

If you are an employer, a short written policy prevents most disputes:

• Name the expenses you cover: phone, internet, required equipment, mileage.
• State the method: actual cost with receipts, or a flat amount you will review at least once a year.
• Say how to request reimbursement and how fast you will pay.
• Tell employees that if the amount falls short of actual necessary costs, they can raise it and you will make up the difference.
• Run the stipend through an accountable plan if you want it excluded from wages.

Expense claims are separate from final pay, so see the guide on final paychecks and waiting-time penalties for what happens at separation. The headcount-based rules sit in the California HR laws by headcount hub.

What should I do this week?

The fix takes an afternoon. Employers: list every remote and field employee, note which expenses the job requires, and write the policy above. Employees: write down your monthly phone and internet bill, estimate your work share, and send your manager a short written request. If you are an employer who wants the policy reviewed with the rest of your pay practices, the California HR compliance check-up covers it.

For the wider suburban picture of remote staff, multi-city rules and thin labor pools, read what suburban employers need from HR.

McKinley holds a J.D. but is not a licensed attorney. Articles here are general information, not legal advice. For your specific situation, talk with an employment attorney.