Is the reimbursement request necessary and reasonable? California Labor Law - 2802 has proven to land several companies in hot water with employee-initiated lawsuits, and the rest of the country is beginning to take notice. California law requires employers to reimburse employees for expenses incurred to do their job. California Mileage Reimbursement California Mileage Rate Travel Time Pay California California Mileage Reimbursement Rate Current Mileage Rate California Yet, this rate is not conclusive. What is the California law on mileage reimbursement? California employers are required by law to provide reimbursement for all expenses necessarily spent in the discharge of their job duties. What are the 2020 mileage reimbursement rates? There is an extensive resource about California mileage reimbursement and related employment issues at Lawzilla. Expense reimbursement may seem like a small issue in comparison with the other areas of liability facing California employers, but the exposure for not appropriately reimbursing employees can be substantial. 2802. So if a company agrees to reimburse for mileage driven for company purposes does that mean employee mileage reimbursement law states it must pay every claim? This rate applies to both cars and trucks and fluctuates year by year. In December 2018, the Internal Revenue Service issued the 2019 optional standard mileage rates. Vehicle expenses are another common reimbursable expense. The standard automobile mileage reimbursement rate set by the IRS for 2020 - 57.5 cents per mile. California’s law is the most explicit, so we’ll use it as our guide. Efforts To Change The Law There are no bills pending in the California Senate or House of Representatives to change Labor Code, section 2802 or Labor Code, section 2804. On December 31, 2019 the Internal Revenue Service (IRS) finally issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.. Beginning January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: ... Mileage reimbursement. California law requires that employers pay employees for all hours worked. Employers will often use the rate set forth by the IRS though they are not required to do so. 4th 554, the California Supreme Court outlined three possible methods for paying for automobile expenses, with mileage reimbursement being one (the other two are the lump sum method—an sum agreed to between employer and employee believed to fairly cover use of the employee’s vehicle—and the actual expenses method—actual automobile … There are thousands of locality adjustments in the U.S. socio-economic order. Be sure to check it out. This does not include commuting to and from work. Except, that is, in California. California has long held certain expenses, like cell phone bills and car mileage, as necessary and reasonable under certain circumstances. A second suit is pending in Georgia. If an employee’s duties require the use of the employee’s car, the employee should receive reimbursement for automobile expenses such as mileage, gas, and wear and tear. Download Now. California law operates to ensure employers provide employees with the equipment and resources necessary to work and protect employees by preventing employers from passing operating expenses on to employees. Harte-Hanks Shoppers, Inc. (2007) 42 Cal. California Labor Code section 2802 requires employers to indemnify their workers for expenses they necessarily incur in their duties. Section 2802 (a) of … ... One of the most common employee expenses relates to driving and travel, like mileage reimbursement. California law only requires reimbursement of expenses that are necessary to perform your work duties. Most certainly not. Mileage Reimbursement Under California Law. California State designates the current IRS mileage reimbursement rates according to state law. Although many employers provide some mileage reimbursement, the amount paid does not compensate for all costs incurred by employees to drive their personal cars for work. Several states (California, Illinois, Massachusetts, Rhode Island, North Dakota, and South Dakota to name a few) have laws governing the reimbursement of mobile employees for work-related expenses. Companies can – and should – decline specific reimbursement requests. Even if the state where you live doesn’t mandate mileage reimbursement, the federal Department Of Labor might be able to help you. Section 2802 only requires reimbursement of necessary and reasonable expenses incurred by the employee as a condition of continued employment. On behalf of Law Offices of Anthony Choe | Jul 16, 2018 | Employee Rights. Each year, the IRS sets a standard mileage reimbursement rate so contractors, employees, and employers can use them for tax purposes. The most common travel expense is mileage. California law requires that all employees be reimbursed for employer-related expenses, including mileage reimbursement. A California suit alone involves hundreds of drivers. The potential obligation to reimburse employees for remote work expenses is not limited to California, however. Workers in CA are entitled to reimbursement for distances they travel in their own vehicle, according to California mileage reimbursement rules. The basic rule in California workers' compensation claims has long been that injured workers are entitled to reimbursement for mileage to attend medical evaluations and treatment appointments. ... Common California Employee Reimbursement Claims. California Labor Code section 2802 requires employers to reimburse employees for “all necessary business expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” Yes. Numerous businesses require employees to drive at some point or another. The term “hours worked,” however, is not all that simple to define or apply. As per Section 2802 of the California Labor Code, an employer may not pass the ordinary costs of doing business to their employees. And the California Labor Commissioner has taken the position that if the employer reimburses at the IRS rate, it has satisfied its obligation. The law regarding business expense reimbursement in California states that an employer must pay back “all necessary expenditures or losses” incurred by employees “in direct consequence” of the performance of their duties. (8) Subject to available funds, reimbursement is authorized for California law enforcement agencies participating in the POST Reimbursable Program in counties bordering states contiguous to California, and whose officers attend California POST-certified training courses in … But employers do not have to use the IRS rate. ... typically at the IRS’ standard mileage rate. What Does the Law Say About Mileage Reimbursement in California? Under California Labor Code 2802, the employer must reimburse their employees for vehicle expenses if they are required to use their personal vehicle for work-related activities. If you drive your personal car for work, your employer has to reimburse you for gas and mileage. Employees must have advance approval to drive a personal vehicle on state business. California employers do not have to reimburse the IRS rate. These expenses include, but are not limited to, mileage reimbursement for miles driven. But it does offer significant information with respect to how the DLSE approaches California’s expense reimbursement laws, even including several factual scenarios. If you are injured on the job in California and you need to travel to a doctor’s office, therapy office, a pharmacy to pick up medication, or to a law office to attend a deposition, the insurance company has to reimburse you for your mileage.. Mileage reimbursement in workers compensation cases requires knowing:. California is considered one of the top states with the highest cost of living expenses. In general, the Labor Commissioner has stated that the IRS mileage rate will be viewed as a reasonable measure of business-related vehicle expenses. They may instead reimburse actual expenses incurred. Man y organizations are unaware of the serious risk associated with reimbursement for their mobile employees. Mileage reimbursement laws in California. For 2020, the standard IRS mileage rates are: 57.5 cents per mile for regular business driving. (a) An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful. The analysis is compounded when the hours worked are, for instance, part of the employee’s commute, consist of travel to a remote conference, or spent moving from client to client throughout the day. Update: On November 25, 2014, the California Supreme Court denied a petition for review and denied a request to depublish the appellate court case. However, as many employment-related laws are, things can be … Before 2007, California Law was unclear on how employees had to be reimbursed for their expenses incurred in the required use of their own vehicles in connection with their work. 2007 Proposed DLSE Regulations on Mileage Reimbursement. Mileage reimbursement in California is required. Law Review IRS Mileage Reimbursement Rates. What can be submitted; How much is the reimbursement? For some employees, this will only occur sparingly, but for others, it is a regular part of the job. As employees continue teleworking, employers should familiarize themselves with the requirements for reimbursement under California law. Other states, including Illinois, Iowa, Montana, New Hampshire and South Dakota, have enacted laws which may require reimbursement of employee expenses, although case law in these states is not as well-developed as in California. A California Court of Appeal recently issued a short decision in Cochran v.Schwan’s Home Services, Inc., B247160 (Aug. 12, 2014) that took an expansive view of an employer’s obligation to reimburse employees for business expenses. Wage & Hour Laws - Minimum Wage Laws Complete Labor Law Poster for $24.95 from www.LaborLawCenter.com , includes State, Federal, & OSHA posting requirements If this is your first visit, be sure to check out the FAQ by clicking the link above. California Law Addresses Employee Business Expense Reimbursement. California Mileage Reimbursement. California vehicle mileage reimbursement law is one such category designed to handle this issue, particularly seeing as usage of a personal vehicle is one of the largest categories of expense that people incur on their jobs. Federal Labor Laws Prevent Employers From Withholding Vehicle Reimbursements If Your Vehicle Expenses Push You Below Federal Minimum Wadge. 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