California Employers Beware: cell Phones Present Another area for Class Action Potential
In August 2014, the California State Court of Appeals (2nd Circuit, Division 2) decided in Cochran v. Schawan's Home Service that employers were responsible for reimbursing employees for the business use of personal cell phones. Most cell phone users have unlimited minute plans so the question before the court was whether reimbursement was warranted even if the employee did not incur an extra expense. The answer: reimbursement is always required. The California Supreme Court has denied a petition to review this case so this holding stands. Employers with employees in the state of California should be mindful of this decision and take steps to implement policies which comply with the law (e.g., provide company cell phones, provide for reimbursement of actual cell phone usage for business-related calls, or provide a flat amount of reimbursement per month per employee).
Hinshaw attorneys are available to assist employers implement and enforce such policies.
Topics
Featured Insights

Hinshaw Alert
Apr 17, 2026
Q&A: How to Submit Your IEEPA Refund Claim as CAPE Portal Launches April 20, 2026

Webinar
Apr 29, 2026
When a Cyber Breach Hits: Cybersecurity, Privacy, and Compliance

Event
Apr 23, 2026
Driving Ahead: Insights from Industry Leaders Auto Finance Seminar

Press Release
Apr 17, 2026
André Sesler Elected to the Board of Trustees of the University of Florida Law Center Association

In The News
Apr 14, 2026
Bloomberg Law Recaps Panels Presented at Hinshaw's 25th Anniversary LMRM Conference

In The News
Apr 14, 2026
Michael Dowell Discusses the Uncertain Impact of Growing Medicare Advantage Scrutiny

Privacy, Cyber & AI Decoded Alert
Apr 9, 2026
6 Key Takeaways From the IAPP 2026 Global Summit for Privacy Compliance Professionals

In The News
Apr 9, 2026
Megan Lopp Mathias Discusses Future of DEI Employment Initiatives

Consumer Crossroads: Where Financial Services and Litigation Intersect
Apr 8, 2026
After Arbitration, Does a District Court Have Jurisdiction to Confirm or Vacate an FAA Award?



