Mileage in Calfornia

BDSI

Hello,

Is it 'law' that an employer must pay an employee mileage when driving their own vehicles to and from jobsites?  If so, is there a min/max?

SFbay

CA Labor Code Section 2802 requires that an employer "indemnify an employee for all
necessary expenditures or losses incurred as a direct consequence of the discharge of
his or her duties, or of his or her obedience to the directions of the employer as
specified (CA Labor Code Section 2802).

 The dept. of labor standards enforcement has proposed regulations on 2802 but I don't think they ever became final. However they still offer some information that may help you.

 The proposed regulations define "indemnify" as: "The amount that fully compensates each employee for what the employee has necessarily expended in the performance of work for the employer. An employer and employee may not agree to less than full indemnification for all necessarily incurred expenses.
(b) Mileage Reimbursement. The sum paid to an employee to indemnify the employee for the necessary costs incurred in operating vehicles provided by the employee for work, excluding the mileage driven commuting from home to work."

The  proposed regulations define mileage reimbursement as "the sum paid to an employee to indemnify the employee for the necessary costs incurred in operating vehicles provided by the employee for work, excluding the mileage driven commuting from home to work." 

They go on to say "The Internal Revenue Service standard vehicle mileage reimbursement rate, as published annually in Internal Revenue Service Publication 463 Entertainment, Gift, and Car Expense, is presumed to be a reasonable rate for reimbursement of mileage to employees for use of their personally provided vehicles for work for miles driven during the effective period of each such Internal Revenue Service rate."

 

http://www.dir.ca.gov/dlse/2802Regs/2802Regs-ProposedText13700-13706.pdf

 

 

BDSI

Thank you so much SFbay!