Is there a statute of limitations on either reimbursements or back pay from an employer?

Question

I was a volunteer then an employee w/ a religious/spiritual nonprofit from 2017-2021. Between 2017 and 2019 I put approx $2000 of purchases for the organization on my personal credit card. I neglected at the time to ask for reimbursements. It's all documented. They say a statute of limitations has passed & that reimbursement now would amount to a "gift" to me that nonprofits are prohibited from doing by state & federal law. Is this true? There is no dispute the purchases were for the organization, and never intended to be a donation from me to them. Also: Before I was an employee and was just a volunteer, I did 56 hours of work for a promised $20/hour, which I never received, mostly because I never followed up on it (such is life as an enthusiastic nonprofit volunteer.) Here too, I'm told my money requests are "unenforceable as a matter of law" & outside a statute of limitations. Is this right? FWIW, I had been their biz manager & was on the Board till earlier this year. Thank you.

Neil Pedersen · Answer

The right to receive reimbursement from an employer is statutory, and the statute of limitations for a violation of statute is 3 years from the date the reimbursement should have been paid.  Money that should have been paid to you in 2017, or for that matter, any time prior to August 1, 2020, is likely not something you can reach back to procure.  It is possible that you could reach back one additional year if it can be maintained in court that the failure to reimburse you was part of an unlawful business practice.  That still wont reach back further than August 1, 2019. 
 
It should also be noted that the Labor Code provision that requires the repayment of expenses incurred on behalf of the employer does not apply to volunteers.  However, more would need to be known about your situation to determine if you were properly characterized as a volunteer.  Many time volunteers should be classified as employees and are not. 
 
Finally, there are some other theories that you might have been able to avail, such as contract or quasi-contract theories.  However, I do not want to get your hopes up.  Non-written contract claims have a two year statute of limitations, and quantum meriut claims have a three year limit. 
 
It would be wise for you to seek out a consultation with an attorney who can be allowed to learn far more about this situation.  There might be some creative way to get your money. 
 
Good luck to you.

Maurice Mandel II · Answer

Unfortunate that you neglected to assert your rights in a timely manner. $2000 is a lot for an employee to be gifting to the employer.  However, in addition to the theories listed you may be able to avail yourself of a 4 year statute of limitations, which again, only reaches back to August 2019, via concepts of "open book account" that you maintained for this employer if in writing and "Unfair Competition Law" found in Business and Professions code § 17200 et seq.  You need to consult with an attorney about these but you will probably be filing in Small Claims since this involves such a small amount of money (comparatively.)

James L. Arrasmith · Answer

There may be exceptions or other factors that could affect the specific statute of limitations in your case. Regarding the purchases made on your personal credit card and the promised but unpaid compensation for volunteer work, you may still have a valid claim within the statute of limitations period. I recommend consulting an attorney to review the details of your situation and assess your options for pursuing reimbursement and back pay. 
 
James L. Arrasmith 
Founder and Chief Legal Counsel of The Law Offices of James L. Arrasmith

Q: Is there a statute of limitations on either reimbursements or back pay from an employer?