Businesses have grown dependent on the practice of employees’ using their own mobile devices in the workplace and for work. Yet the legal complications are rising, including a California appellate decision that “reaffirmed employer obligations to reimburse employees for work related mobile usage on personal devices.” In part because there is no standard metric for breaking down an employee’s data usage bill into work-related and non-work-related portions, it is not easy to attempt tailored reimbursement practices to reflect changing usage: by one estimate, “just the processing of [a manually submitted] expense report alone costs a company between $18 and $29.” As a result, many employers simply settle on a ballpark figure, such as $70/month, as the reimbursement. “If those subsidies were even lightly scrutinized, they’d be deemed, at least partially, an employee benefit subject to taxation to subsidize Netflix and other personal habits.” Add-on services, for a cost, may serve to navigate between the demands of labor regulations on the one hand and tax authorities on the other. [vendor Ben Rotholtz, Forbes]
Filed under: cellphones, taxes, wage and hour suits