Lawyer question regarding expenses

This didn't happen to me, just a story I was told, I'll try to be specific without getting into too many details.

I know of a company that makes people move from one state to another depending on the time of year, for farming reasons. This company makes it mandatory for the people to move in order to work year round. It is roughly 8 months in one spot and 4 months in the other, depending on how the season goes. 

1)They only paid lower wage employees $0.26/mile for mileage, instead of $0.52/mile, claiming some BS, which I didn't understand, but it sounded as if, since their bills are lower, they don't need the full $0.52/mile.
2)They are responsible for their own food and lodging when they are away from home.

Industry standard pays all employees room and board and gives a per diem or covers food.

I think what the company is doing is illegal, or at the very least unethical, but it could be they are following the very letter of the law. Should those employees look into contacting a lawyer?

Itemize expenses?

Yes. Lets say in this situation, people are being asked to move 750 miles away from their main residence. Wouldn't the company have to pay at the very least mileage, if not all moving expenses and pay for their room and board?

How large is the company?

Publicly traded on NYSE. Not a blue chip, but the name is recognizable. Its over 40,000 worldwide. Has to be around 20-30k in the US.

InTenSity wrote:This didn't happen to me, just a story I was told, I'll try to be specific without getting into too many details.

I know of a company that makes people move from one state to another depending on the time of year, for farming reasons. This company makes it mandatory for the people to move in order to work year round. It is roughly 8 months in one spot and 4 months in the other, depending on how the season goes. 

1)They only paid lower wage employees $0.26/mile for mileage, instead of $0.52/mile, claiming some BS, which I didn't understand, but it sounded as if, since their bills are lower, they don't need the full $0.52/mile.
2)They are responsible for their own food and lodging when they are away from home.

Industry standard pays all employees room and board and gives a per diem or covers food.

I think what the company is doing is illegal, or at the very least unethical, but it could be they are following the very letter of the law. Should those employees look into contacting a lawyer?

Are the workers employees or individual contract workers?  If contract, then the employer owes them nothing beyond their pay.  The workers can write off food, travel and other costs in taxes with the travel and working from another location not near their homes mandatory.  The workers should initiate their own LLC if not direct employees. If the employees are direct, the company should have an employee handbook that explains the work situation. If true and the employee knows what he or she is signing up for, there is no recourse that I'm aware. But then I'm not a lawyer.

InTenSity wrote:Yes. Lets say in this situation, people are being asked to move 750 miles away from their main residence. Wouldn't the company have to pay at the very least mileage, if not all moving expenses and pay for their room and board?

Why would the company be required to be pay expenses... and by whom?

Are the workers employees or individual contract workers? If contract, then the employer owes them nothing beyond their pay. The workers can write off food, travel and other costs in taxes with the travel and working from another location not near their homes mandatory. The workers should initiate their own LLC if not direct employees.

AFAIK they are paid by the company directly and not contract employees. I do know of salaried employees that have to pay their own room and board. This is like telling someone they need to travel for 3 months, but the company isn't going to pay for your flights to get there or your hotel room or whatever other boarding is available. This company also went to a model of Bring Your Own Phone, but won't cover the full cost of the phone and data, that they require you to use.

Why would the company be required to be pay expenses... and by whom?

Why wouldn't the company be required to pay? If I get a job, and I'm told there is travel required, wouldn't it be SOP, to get reimbursed for that travel? Why would I travel and pay my own way to travel?

InTenSity wrote:
AFAIK they are paid by the company directly and not contract employees. I do know of salaried employees that have to pay their own room and board. This is like telling someone they need to travel for 3 months, but the company isn't going to pay for your flights to get there or your hotel room or whatever other boarding is available. This company also went to a model of Bring Your Own Phone, but won't cover the full cost of the phone and data, that they require you to use.


Why wouldn't the company be required to pay? If I get a job, and I'm told there is travel required, wouldn't it be SOP, to get reimbursed for that travel? Why would I travel and pay my own way to travel?

Again, I think there are no laws covering what a company must provide. This company is obviously cutting every operating cost. I would choose to work elsewhere. Either the companies profits are low and they're struggling to make payroll, stocks are junk or it's run by asswipes. Time to move on.

May depend on the state.

California Labor Code section 2802(a)states:

"An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful."


Section 2802 is designed to prevent employers from passing their operating expenses on to their employees. For example, if an employer requires an employee to travel on company business, the employer must reimburse the employee for the cost of that travel under Section 2802.

Some initial caveats are worth mentioning:

First, Section 2802 is a product of California state law. It will not apply to business and employees who operate outside of California, though other states may have similarly worded laws which protect its employees. Consult an employment attorney in your area.