Supreme Court of California

An employer may satisfy its statutory reimbursement obligation under Cal. Labor Code section 2802 by paying employees enhanced compensation in the form of increases in base salary or increases in commission rates, or both, provided there is a means or method to apportion the enhanced compensation to determine what amount is being paid for labor performed and what amount is reimbursement for business expenses.

Appellate Information

• Decided 11/05/2007
• Published 11/05/2007

Judges

• KENNARD, J.

Court

• Supreme Court of California

Counsel

• For Appellant:
  
• Hollins• Schechter, Andrew S. Hollins, Kathleen M.K. Carter, Jeffrey R. Gillette, Santa Ana, Alicia K. Berry and Christine R. Arnold, for Plaintiffs and Appellants., Tosdal, Smith, Steiner & Wax and Thomas L. Tosdal, San Diego, for Employee Rights Center as Amicus Curiae, on behalf of Plaintiffs and Appellants.


• For Appellees:
  
• Seyfarth Shaw, Raymond R. Kepner, Los Angeles, Ann Haley Fromholz, John A. Van Hook and Holger G. Besch, Los Angeles, for Defendant and Respondent., Winston & Strawn, Lee T. Paterson, Los Angeles, Tyler M. Paetkau, Robert Spagat, San Francisco, and Julia Lapis Blakeslee, Los Angeles, for Employers Group as Amicus Curiae, on behalf of Defendant and Respondent., Paul, Hastings, Janofsky & Walker and Paul Grossman, Los Angeles, for California Employment Law Council as Amicus Curiae, on behalf of Defendant and Respondent.