Oral Argument Set for Gattuso v. Harte Hanks

The California Supreme Court announced today that it will hear oral arguments in GATTUSO v. HARTE HANKS SHOPPERS, (Case No. S139555) on Thursday, September 6, 2007, at 9:00 a.m., in San Francisco. 

As according to the California Supreme Court, the issue in the case is whether "an employer complies with its duty under Labor Code section 2802 to indemnify its employees for expenses they necessarily incur in the discharge of their duties by paying the employees increased wages or commissions instead of reimbursing them for their actual expenses."

In simpler terms, the case will address whether employers can agree to pay employees a higher rate of pay in order to compensate employees for business expenses they incur during their job, as opposed to reimbursing the employee for each expense as it occurs.  We have seen a large increase in wage and hour cases alleging violation of Labor Code Section 2802, and hopefully the Supreme Court will provide some guidance for California employers on this issue. 


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