Q:  Our employer provides a cell phone stipend depending on whether our position requires us to use personal smart phones for work.  This arrangement has worked well for several years, but we recently heard rumors that management is thinking of doing away with the practice.  The rationale is that nowadays, most phone plans are unlimited and employees are not incurring an extra expense by using their personal phones for work.  But, even if that were true (which in some cases it’s not) can they do that?  Stop paying and still expect us to use our phones for work?

A:  With a few caveats, yes they can.

Generally, an employer can require you to use personal property (like your vehicle, or cell phone) as long as you are properly reimbursed for additional costs incurred when used for work.  In the case of a vehicle, that’s easily measured by mileage, with the IRS providing a standard figure.  However, there’s no such thing with cell phone use.  So when employers (like yours) adopt a Bring Your Own Device (BYOD) policy, it’s more difficult to determine what additional cost is being incurred, (if any).  Thus the stipend. (BTW: In California, employers are required to reimburse employees regardless of additional cost or not).

In the last few years more companies have adopted a BYOD policy, and –according to one study— by 2017, over 50% of employers in the US will require employees to bring their own devices. Among employers who have a BYOD policy roughly half of them now provide a partial subsidy, or stipend.   But with the costs for phone plans declining, the study predicts that “employers will gradually reduce their subsidies and as the number of workers using mobile devices expands, those who receive no subsidy whatsoever will grow.”

And that might include you.  Your employer seems to be following the trend.  What you could suggest to management -if the rumor is true- is that they take their time with implementation.  This is a big money-savings for them, and they’ll be under great pressure to make the change.  But I would recommend patience. Change could take place over a year, and be slowly phased out giving employees time to adjust their own budgets and absorb what will become an extra expense to their household.

©Copyright Eva Del Rio

Eva Del Rio is creator of HR Box™ – tools for small businesses and startups. Send questions to Eva@evadelrio.com