Account Executives, Account Managers,
and Sales Representatives
Haven't been paid for expenses?
Free Consultation: Contact Us
Not sure? Read more below...
Account Executives, Account Managers, Sales Representatives and other employees with similar titles in sales positions, such as outside sales reps, radio advertising, public relations, and marketing, are entitled to full reimbursement of expenses. Many employers treat account executive employees as independent contractors, failing to provide expense accounts to reimburse expenses or placing arbitrary “caps” or dollar limits on reimbursements in violation of the California Labor Code.
Unreimbursed Expenses
The nature of business in outside sales and public relations positions is that employees incur expenses for automotive, cell phone, and marketing costs in performing their job duties securing sales for their employers. Yet they are often not permitted to submit expense reports though they pay out hundreds of dollars per month in expenses generating business. Generally, in California, employees must be reimbursed for all expenses incurred in connection with their work. This cannot be altered by contract; that is, the employer cannot require employees to agree to pay for expenses incurred in discharging job duties and cannot put a weekly or monthly “cap” or dollar limit on expenses and refuse to pay reasonable and necessary expenses above the limit. Employees are entitled to recover un-reimbursed expenses dating back up to four years, with interest.
Some examples of covered expenses include:
- training costs
- seminar costs
- telephone charges
- mailing costs
- postage
- subscriptions
- office supplies
- mileage
- cell phone
- advertising
-
- business development
- business lunches
- office equipment
- wages of the support staff
- costs associated with transaction errors
- costs to settle disputes with customers
- other necessary business-related costs or expenses that resulted from your employment
Improper Deductions
In general, employers may not make deductions from commissions except for the benefit of employees, such as benefit plans and union dues. Employees are entitled to recover improper deductions dating back up to four years, with interest.