One-line summary: California's strict limits on wage deductions (Cal. Lab. Code §§ 221, 224 and Kerr's Catering Service v. DIR) and California's mandatory business-expense reimbursement rule under Cal. Lab. Code § 2802 — including reimbursement of necessary home-office expenses (apportioned home internet, phone, utilities) per Cochran v. Schwan's Home Service, 228 Cal. App. 4th 1137 (2014).

California Wage Deductions & Business-Expense Reimbursement

Wage deductions

California law tightly restricts what an employer may deduct from an employee's wages:

• Cal. Lab. Code § 221 prohibits employers from collecting back any part of wages that have been paid (i.e., recouping wages already earned).
• Cal. Lab. Code § 224 allows certain authorized deductions (e.g., taxes, court orders, insurance premiums the employee elected). Outside those, deductions are very limited.
• Property loss / damage deductions are generally not allowed in California even with employee authorization, under Kerr's Catering Service v. DIR, 57 Cal.2d 319 (1962). California treats most "loss" deductions as the cost of doing business.

For California-resident employees, Launch will not deduct the cost of unreturned property, damaged equipment, or business losses from your final paycheck or any other paycheck, except where specifically permitted by law.

If property is not returned, Launch reserves the right to seek recovery through other lawful means — but not by deducting from your wages.

Business-expense reimbursement (Cal. Lab. Code § 2802)

Under Cal. Lab. Code § 2802, California employers must reimburse employees for all necessary expenditures and losses incurred by the employee in direct consequence of the discharge of their duties. This includes:

• Mileage for business use of a personal vehicle (at the IRS standard mileage rate or actual cost, whichever Launch designates).
• Home-office costs apportioned to business use, per Cochran v. Schwan's Home Service, 228 Cal. App. 4th 1137 (2014):
  • Cell phone / smartphone: a reasonable percentage of your monthly bill if you are required to use your personal cell phone for work.
  • Home internet: a reasonable percentage of your monthly internet bill apportioned to work use.
  • Home utilities (electricity, etc.) where used to support work-from-home equipment.
• Software, subscriptions, or tools you are required to purchase for work.
• Travel expenses consistent with §9 of the core handbook.
• Any other necessary business expense.

How to submit reimbursement requests

For California-specific reimbursements (including home-office apportionment):

1. Submit your reimbursement request to HR at hr@launchindustries.biz within 30 days of incurring the expense (or within 30 days of the end of the billing cycle for ongoing monthly expenses like phone / internet).
2. Provide documentation:
   • Receipts or invoices for one-time expenses.
   • Monthly bills (with personal information redacted, if you prefer) and a brief explanation of the work-use percentage you are claiming for ongoing expenses.
3. Reimbursements will be processed within one pay cycle after approval.

If you have a question about what qualifies for reimbursement under California law, contact HR.

CA Wage Theft Prevention Notice (Cal. Lab. Code § 2810.5)

At the time of hire, California-resident non-exempt employees receive a Wage Theft Prevention Notice meeting the requirements of Cal. Lab. Code § 2810.5. If you do not have a copy of your notice, contact HR.

Pay transparency (Cal. Lab. Code § 432.3)

California requires employers to maintain pay-scale records and (for employers with 15+ employees) to include pay scales in job postings. Launch maintains pay records as required by law.

If you notice any outdated information or typos, or need clarification on any policies, please email hr@launchindustries.biz.