California Labor Code Section 2802 requires employers to reimburse employees for business expenses, and California courts have held that reimbursing employees’ mileage at the IRS Standard Mileage Rate complies with Section 2802 for business use of an employee’s personal vehicle.

As of January 1, 2023, the Internal Revenue Service has increased the standard mileage rate to 65.5 cents per mile driven for business use. Employers may reimburse employees who use their personal vehicles for business use, at the updated standard mileage rate.

These rates apply to electric and hybrid-electric automobiles, as well as to gasoline- and diesel-powered vehicles.

For any further information, please contact Kurtis Urien at kurtis@mrclawcorp.com or (714) 972-2333.