If you pay employees a “flat” or automatic amount for reimbursement of their expenses, such as cell phone and internet charges, this new 9th Circuit case is important: https://cdn.ca9.uscourts.gov/datastore/opinions/2021/02/08/19-55784.pdf. The Court ruled that an employer’s per diem expense reimbursement payments constituted compensation for work rather than business expense reimbursements. As a result, the employer should have included the per diem payments in the calculation of the employees’ “regular rate of pay” for overtime and other purposes, including mandated sick leave and reporting time pay. Stay tuned! Watch Jennifer discuss this development here.