California Labor Code § 2802 & Texting: FAQ + BYOD Compliance Checklist for Employers

May 2, 2025 | The TruHu Team

Why You Should Care

Thinking about texting or emailing California employees on their devices?  This article is for you.
Under  Labor Code § 2802 , employers must reimburse any “necessary expenditures” workers incur while doing their jobs, including the cost of receiving company messages on a personal phone, data plan, or laptop. Fail to pay a fair share, and you risk back pay, interest, and attorney fees.

Despite these regulations, you can keep staff informed using personal devices with minimal or no additional costs. This post outlines the relevant laws and answers common questions about when reimbursement is required to ensure compliance while effectively communicating.

Understanding the Law: Common Questions

Q:  Does the law treat texts, emails, and app notifications differently?
A:  No. If the message travels through a device or service the employee pays for and it’s required for work, the cost is a reimbursable “necessary expenditure.”

Q:  Do we have to buy everyone a phone?
A:  No. You can (a) issue company‑owned equipment or (b) let employees use personal devices and reimburse a reasonable percentage of their costs.

Q:  How much do we have to reimburse?
A:  Enough to fully compensate the employee for the work‑related portion of the expense. Courts require payment of a reasonable percentage of the phone bill, not the entire plan, unless the phone is used exclusively for business purposes.

Q:  What’s a reasonable percentage, and how do we decide the amount?
A:  The statute sets no number. Most California employers pay between $25 and $40 as a flat stipend. We recommend conducting a quick usage study (calls, texts, data for work apps), choosing a percentage or dollar figure that covers that slice, and allowing employees to request a true‑up if actual costs exceed the standard rate.

Q:  Must we pay a stipend up front?
A:  No. Pre‑payment isn’t required. Any method—such as a flat stipend, percentage of the bill, itemized expense claim, or clearly labeled salary bump—is compliant if employees are fully reimbursed and the approach is documented.

Q:  Can we require employees to waive reimbursement?
A:  No. Any waiver of § 2802 rights is void.

Q:  Can employees use personal devices without reimbursement?
A:  Reimbursement is required only if using the device is truly optional  and  one of the exemptions below applies. Once the task becomes mandatory or there are no free alternatives, the obligation to reimburse applies automatically.

§ 2802 Exemptions & Safe Scenarios

• The employer pays 100% of the phone plan or provides a company device.  If the employee incurs no out-of-pocket costs, there is nothing “necessary” to reimburse.
• Personal phone use is truly optional.  Employees can decline it and still perform their jobs using employer-provided tools (portal, desk phone, kiosk), so any texting expense is unnecessary.
• The individual is not considered a statutory employee , as § 2802 does not apply to independent contractors, volunteers, or most applicants. Therefore, their device costs are not covered under the statute.
• Recent case law (Krug v. CSU, 2025) establishes that  public-sector employers are not subject to § 2802  reimbursement rules.
• Work and texting occur entirely outside of California.  Courts limit § 2802 to expenses incurred within the state; therefore, out-of-state work typically escapes liability.
• Messages purely personal and unrelated to job duties , such as social chat, are not considered “necessary expenditures,” so reimbursement is not required.

BYOD Policy Checklist

• Voluntary use, clear alternative
  State that using a personal phone is optional, and a company‑supplied option (work phone, kiosk, desktop portal) is always available at no cost.
• What’s covered, what’s not
  List the tasks you count as work‑related, such as calls, texts, data for approved apps, and MFA codes, and note exclusions like personal streaming or social media.
• How reimbursement works
  Explain the claim method (e.g., % of the bill, itemized true‑up) and the minimal documentation required (first page of the phone bill).
• Simple claims process
  One‑page form or expense app; payments issued in the normal expense cycle.
• Opt‑in acknowledgment
  Employees confirm they reviewed the free alternative and know how to request reimbursement.
• Off‑hours guardrails
  Remind managers and employees that after‑hours texts count as work time unless pre‑approved.
• Data handling & confidentiality
  Clarify how company data must be stored, shared, and deleted.
• No retaliation
  Choosing a company device instead of BYOD never affects pay, status, or advancement.

Bottom Line

Treat personal device use like any other business expense: plan for it, price it, and put it in writing. A clear BYOD policy—or a straightforward stipend—plus a simple reimbursement path will keep you compliant with Labor Code 2802 texting rules and prevent surprise claims. When in doubt, run your policy by qualified counsel; an hour of legal review costs far less than a lawsuit.

Resources

California Labor Code § 2802 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB§ionNum=2802

Cochran v. Schwan’s Home Service  (2014) — “reasonable percentage” cell‑phone rule

Thai v. IBM  (2023) — remote‑work expenses case

Krug v. CSU  (2025) — public‑entity exemption

California DIR FAQ on reimbursements — https://www.dir.ca.gov/dlse/faq_deductions.htm