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. This does not include commuting to and from work.

There are three main ways an employer can reimburse an employee for vehicle costs. With the Mileage Reimbursement Method, the employer must reimburse the employee at a rate of $0.54 per mile driven, according to the IRS standard mileage rates. The employee must keep track of every mile driven and report them to their employer.

Such reimbursement covers:

• Fuel costs
• Maintenance costs
• Insurance
• Licensing and registration
• All other costs associated with operation of the vehicle

The Actual Expense Method is a method that tracks the exact expenses incurred by driving the personal vehicle for work-related activities. While this method is very accurate, it is less commonly used because it is difficult and time consuming to calculate.

The Lump Sum Method is a method in which an employer gives the employee a lump sum for vehicle expenses, and does not require the employee to track the miles driven for work-related activities. The lump sum must comply with California Labor Code 2802 by covering the actual costs of driving the vehicle for work.

Employers also have to reimburse employees for other types of business-related expenses that are incurred as a result of performing work-related duties. This includes, for instance, cell phones and plans, printing, faxes, marketing material and business cards. Note that independent contractors do not have the right to be reimbursed for their vehicle expenses.

If you believe your employer has failed to reimburse you fairly for vehicle expenses, contact an experienced employment attorney at Strong Advocates to help determine your rights.

Other Employment FAQs:

• According to the rules for overtime pay in California, how long do I have to file an overtime pay claim?
• Am I entitled to overtime pay?
• Are there any restrictions on what an employer can ask me during a job interview?
• Can employers assign work based on employees’ ages?
• Can I get fired for reporting sexual harassment to my employer?
• Can my employer ask about my age?
• Can my employer legitimately deduct anything from my paycheck?
• Can my former employer give me a bad reference to a potential employer in the future after I have reported sexual harassment?
• Can temps file discrimination lawsuits?
• Does an employer have to give me rest breaks?
• Does sexual harassment have to involve sex or other physical contact?
• How and when do you file an unlawful retaliation lawsuit?
• How can I prove age discrimination in my workplace?
• How do I recognize on-the-job discrimination?
• How is illegal retaliation defined?
• How is national origin discrimination defined?
• How to Report Sexual Harassment at Work?
• I am scared to report sexual harassment because I fear that I will be retaliated against by my employer. What should I do?
• I have recently become disabled and cannot do the work I had been doing. What should I do?
• I was bypassed for promotion because I’m pregnant. Is that legal?
• I was sexually assaulted or harassed at my workplace, but I was then laid off due to COVID-19. Do I still have a legal claim?What are some of my options?
• I was sick and had to take a leave of absence. When I came back to work, I was fired. Is it wrong for me to be fired?
• If I am laid off, does my employer have to pay me severance?
• If I was sexually assaulted many years ago, can I still bring a civil lawsuit for damages?
• If my employer violated the terms in the employee handbook by firing me, can I hold him responsible?
• Is an employee or applicant protected from discrimination because of their past pregnancy?
• Is my employer responsible if I am sexually harassed at a company-sponsored event outside of working hours?
• Is sexual battery charged as a misdemeanor or felony?
• May an employer ask an employee or an applicant if they are pregnant or if they intend to become pregnant soon?
• My employer does not pay mileage reimbursement when I use my own car for company business. What is the California law on mileage reimbursement?
• My employer does not pay overtime pay. What is the California law on overtime pay? Am I supposed to receive overtime on my commission also?
• My employer yelled and cursed at me. Can I sue him or her for harassment?
• What are my rights regarding breaks and meal periods?
• What are the federal and state laws and regulations which provide legal protections for employees?
• What are the signs of age discrimination in the workplace?
• What are the time limits for filing a sexual harassment claim?
• What can I do if I see my co-worker being sexually harassed? Can I file a suit against it?
• What can I do if I was wrongfully terminated?
• What evidence is necessary in order to help prove national origin discrimination under Title VII?
• What if I work in a small business and the person harassing me is the owner or supervisor?
• What is age discrimination? What are some examples of age discrimination?
• What is an “at will” work state?
• What is national origin discrimination under Title VII?
• What is overtime in California? Does an employer have to pay me overtime and how much should they pay me?
• What is the ADEA?
• What is the California law for vacation pay? My employer does not want to pay me for unused vacation pay when I quit or was terminated.
• What is the difference between sexual violence, sexual assault and sexual harassment?
• What is the Wage Theft Protection Act?
• What proof of discrimination at work do I need to include in a discrimination complaint?
• What qualifies as discrimination?
• What qualifies as sexual harassment at work?
• What should I do if I believe I was the victim of employment discrimination?
• What should I do if I was sexually harassed?
• What workplace actions are prohibited under the Pregnancy Discrimination Act (PDA)?
• Who do I tell when I feel I am being sexually harassed at work?
• Who is covered by the Wage Theft Protection Act?