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Mileage Reimbursement
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Mileage Reimbursement
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
I saw that the federal mileage reimbursement rate went up to $.405 per mile. Is there any law that requires us to reimburse our salespeople at the new rate?
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Forums » Topic Forums » Legal Forum » Mileage Reimbursement
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Mileage Reimbursement
posted at 2/4/2005 10:25 AM EST
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Posts: 25
First: 2/2/2005 Last: 3/8/2005 |
We discussed this at length in a previous thread (see Mileage Withheld thread)
In California, employee mileage must be reimbursed if is both necessary to the employee's performance of duties, and the expense is reasonable. Check out Labor Code section 2802, as well as the Division of Labor Standard's Handbook on Wage & Hour issues. http://www.dir.ca.gov/dlse/DLSEManual/dlse_enfcmanual.pdf The DLSE has specifically stated that reimbursement at the federal IRS mileage rate is appropriate and sufficient to compensate the employee for use of personal vehicle while working. You do have the right to control how and when expenses (such as mileage) are incurred and under what circumstances they will be reimbursed. |
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Mileage Reimbursement
posted at 2/7/2005 4:49 AM EST
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Posts: 30
First: 10/2/2001 Last: 5/23/2005 |
Thanks, ecslaw. Your response to the question of whether we are required to pay was excellent.
However, my real question was whether we are required to reimburse at the new higher federal rate. I've been to the DLSE site and several others and don't find anything that states we must comply with the federal rate. Thought maybe one of you might know... |
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Mileage Reimbursement
posted at 2/7/2005 8:34 AM EST
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Posts: 25
First: 2/2/2005 Last: 3/8/2005 |
Kriskrengel, I understand your frustration. It's often hard to find a specific answer to a wage & hour question. And, in more cases than not, the government agency regulations are hard to find or not on-point.
I am not aware of any regulation which addresses the specific issue of whether an employer MUST use the current IRS mileage rate. However, the link I gave you to the DLSE manual may be of assistance. Page 103 of the manual states "The DLSE has opined that the use of the IRS mileage allowance will satisfy the expenses incurred in the use of an employee's car in the absence of evidence to the contrary." That seems to strongly suggest that employers should use the current IRS mileage rate, unless there is evidence to support a conclusion that mileage at that rate would not be reasonable or necessary, as discussed above. What that evidence entails depends on the circumstances of the employee's job duties and nature of services required. Given the language in the manual, it seems to me that using a different mileage rate would shift the burden of proof to the employer in any labor dispute before the DLSE. This means that the presumption would be in favor of using the IRS mileage rate, and it woudd be up to you to provide evidence to the contrary. We all know the DLSE, Labor Commission, EDD, and WCAB are very pro-employee in California. The cost to prove the current IRS mileage rate is "unreasonable" may far exceed the few cents difference that you wind up paying the employees. Of course, you can always ask the DLSE for a written opinion on the matter -- if you are that brave. In any event, good luck with whatever you decide. |
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