Summary: If you use your car for business-related purposes for your employer, California law requires that you receive appropriate mileage reimbursement. Contact an attorney for more information.
Under California Law, all employers are required to reimburse employees for necessary job-related expenses such as mileage. When an employer fails to observe these legal obligations, employees can take legal action by filing a claim or even a lawsuit.
If your employer is not paying you properly for mileage when you use your personal vehicle for work, an attorney can help protect your legal rights. A lawyer can identify all potential sources of unpaid wages and advocate on your behalf to recover the compensation you are legally entitled to claim.
California Mileage Reimbursement Rules
California mileage reimbursement laws allow employers to use several methods to compensate employees when they use their personal vehicles to carry out work-related tasks. Mileage reimbursement should cover a wide range of costs associated with driving expenses, including the cost of:
- Gas
- Maintenance
- Vehicle registration
- Car insurance
The Internal Revenue Service (IRS) sets a standard per-mile rate that employers can use, which is based on the fixed and variable costs of operating the vehicle. This per-mile rate is updated on a regular basis based on the cost of gasoline and other factors that could impact mileage costs. For example, as of 2025, the standard IRS mileage rate for the use of a car, truck, or van for business purposes will be 70 cents per mile driven.
California employers are legally permitted to use alternative methods to the IRS standard to calculate the mileage reimbursement amount owed to employees. Legal methods include:
- Paying employees for mileage in a regular lump-sum payment
- Paying for actual mileage based on either the IRS rate or a mutually agreed-upon rate
Employers may also opt to pay for the actual overall cost of using your vehicle for work, including fuel, maintenance, and changes in the vehicle’s resale value.
A fourth and final option California allows is for employers to pay employees a fixed and variable reimbursement for mileage. The total reimbursement amount would be based on a combination of the fixed costs of using your own car for business purposes, plus the variable costs for mileage based on a rate you negotiate with your employer.
Taking Legal Action Unreimbursed Mileage Expenses
No employee can waive their right to mileage reimbursement. If an employer fails to properly reimburse an employee for mileage, the employee can recover that unpaid mileage in court. A successful civil lawsuit could also recover additional damages, plus interest and attorneys’ fees.
If a group of workers employed by the same company are not being correctly compensated for mileage, they may be eligible to file a class action lawsuit against the employer. Class-action lawsuits can offer numerous advantages, including saving employees money and increasing their bargaining power.
California employers are not required to pay for all mileage accrued by employees. For example, companies are not required to pay for ordinary commuting to or from the employee’s office or worksite. This exception aside, there are numerous ways that companies might engage in violations related to mileage reimbursement.
Using improper reimbursement methods that do not meet federal or state standards or poor record keeping of mileage expenses are a few scenarios that can result in workers receiving subpar compensation. If an employee’s wages fall below the federal minimum wage due to the employer’s failure to reimburse them for using their own vehicle for work, they may also be owed back wages in a civil lawsuit.
Contact a Wage Theft Attorney About Your Legal Claim
Employers who do not reimburse employees for owed mileage are violating state and federal law. California employees who are robbed of rightful wages by their employer due to unreimbursed mileage expenses can file a civil lawsuit or file a case with the state Labor Commissioner.
An attorney with in-depth knowledge of California’s specific wage and hour laws can assess your situation and develop a tailored strategy to maximize your chances of recovering unpaid wages.
Reach out to us by using the online chat or form to request your free review. We work on a contingency fee basis, so you pay nothing unless we win your case.
