Grissom

I

In this case we explore an employer’s duties under Labor Code section 2802, which requires an employer to “indemnify” his or her employee “for all that the employee necessarily expends or loses in direct consequence of the discharge” of the employee’s duties. As explained below, the employer’s duties include reimbursement of funds the employee “necessarily expends” to obtain independent counsel to defend an action for conduct within the course and scope of his or her employment. Because the plaintiff in this case may have necessarily expended fimds for such counsel, we reverse the judgment of dismissal after a demurrer was sustained without leave to amend, and remand the case to give plaintiff the opportunity to amend.

II

The plaintiff, a truck driver, was involved in an accident on November 29, 1987. Plaintiff claimed he was injured and sued the individuals he contended were responsible. He also presented a workers’ compensation claim against his employer, a grocery chain.

The individuals sued by plaintiff struck back with a cross-complaint. They claimed he was responsible for their injuries. He demanded the grocery chain defend him from their claims.

The grocery…