The actual expenses of using an employee’s personal automobile for business purposes include: fuel, maintenance, repairs, insurance, registration, and depreciation. Mileage reimbursement based on IRS mileage rate is presumed to reimburse employee for all actual expenses. Many employers typically choose to use the IRS mileage reimbursement rate, but its use is optional. Be sure to check it out. California mileage reimbursement requirement California requires employers to reimburse workers for their business mileage. Each year, the IRS sets a standard mileage reimbursement rate so contractors, employees, and employers can use them for tax purposes. For 2020, the standard IRS mileage rates are: 57.5 cents per mile for regular business driving. ... California law authorizes the Board to establish maximum rates and service limitations for reimbursement of medical and medical-related services and for mental health and counseling services. Reimbursement for use of a personal vehicle for work-related travel generally falls under this provision of California’s Labor Code. Federal Labor Laws Prevent Employers From Withholding Vehicle Reimbursements If Your Vehicle Expenses Push You Below Federal Minimum Wadge. For instance, if you drove 15 miles: 15 miles x $0.58 (IRS mileage rate) = $8.70 due in reimbursement. You may be trying to access this site from a secured browser on the server. The latest litigation trends, court decisions, & issues on California Employment Law. Under the actual expense method, the parties calculate the automobile expenses that the employee actually and necessarily incurred and then the employer separately pays the employee that amount. They may instead reimburse actual expenses incurred. For 2020, the federal mileage rate is $0.575 cents per mile. . In Gattuso v. Harte-Hanks Shoppers, Inc., the California Supreme Court clarified the parameters of mileage reimbursement under California law, as well as the three different methods available for employers to reimburse employees for their mileage reimbursement. 4. BU 9: 9/13/2016. Under section 2804, however, any agreement made by the employee is null and void insofar as it waives the employee’s rights to full expense reimbursement under [Labor Code] section 2802. State-Mandated Programs; Court Costs and Other Related Charges (Penal Code section 4750) For bargaining units with an existing MOU, if the MOU contains travel language that is in conflict with this language, the MOU language shall be controlling. The standard automobile mileage reimbursement rate set by the IRS for 2020 - 57.5 cents per mile. Employees who incur approved overnight lodging expenses may be reimbursed. 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