Under California Labor Code 2802, employers are required to reimburse employees for necessary expenses incurred in executing their job duties for their employer. This reimbursement requirement may apply to the use of the employee’s personal vehicle for work purposes, such as driving between work sites. An employee’s regular commute does not typically require reimbursement, just as commute time generally is not deemed hours worked.

When determining how to reimburse an employee for use of their personal vehicle, employers may select between different methods for reimbursement including actual expense, mileage reimbursement, or a stipend method.

The California Labor Commissioner has opined that the use of the Internal Revenue Service (IRS) mileage allowance will satisfy the expenses incurred in the use of an employee’s car for work purposes, in the absence of evidence to the contrary.

Usually, the IRS announces any changes to the mileage allowance rate in the fall in connection with increases to take place at the beginning of the year. However, in response to increases in fuel prices, the IRS recently announced on June 9, 2022, that it would increase the business travel rate to 62.5 cents per mile, effective July 1, 2022. This is a special adjustment for the final six months of 2022.  Employers who reimburse using the mileage reimbursement method should consider increasing their reimbursement rate accordingly.

If you have questions related to mileage reimbursement or related issues, contact a Jackson Lewis attorney to discuss.

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Photo of Susan E. Groff Susan E. Groff

Susan E. Groff is a principal in the Los Angeles office of Jackson Lewis P.C. She is co-leader of the firm’s California Advice and Counsel resource group. The group delivers legal and practical guidance to assist employers in navigating what are frequently multi-disciplinary…

Susan E. Groff is a principal in the Los Angeles office of Jackson Lewis P.C. She is co-leader of the firm’s California Advice and Counsel resource group. The group delivers legal and practical guidance to assist employers in navigating what are frequently multi-disciplinary issues.

Susan counsels management on a host of labor and employment issues, including wage and hour laws, disability and leave management, harassment and discrimination complaints, workplace investigations, reductions in force, litigation avoidance, and discipline and termination questions.

Due to California’s nuanced and numerous disability and leave requirements, Susan dedicates much of her practice to advising employers on federal and California requirements for disability accommodation and protected leaves of absence. Importantly, she partners with employers not only on these technical disability and leave laws, but also on practical solutions in handling the same.

Susan also provides guidance to employers on California’s challenging wage and hour laws. In addition to day to day advice, she assists with employer audits, compensation plan reviews, and policies in this area.

Photo of Cecilie E. Read Cecilie E. Read

Cecilie E. Read is the knowledge management (“KM”) attorney for Jackson Lewis P.C.’s California practice and Privacy, Data and Cybersecurity group, and is based in the Los Angeles, California, office of Jackson Lewis P.C. She uses her expansive understanding of the complexities of…

Cecilie E. Read is the knowledge management (“KM”) attorney for Jackson Lewis P.C.’s California practice and Privacy, Data and Cybersecurity group, and is based in the Los Angeles, California, office of Jackson Lewis P.C. She uses her expansive understanding of the complexities of employment law to ensure all Jackson Lewis attorneys are consistently ahead of the curve and working efficiently to serve clients.