Jobs that require you to drive, travel between job sites, attend meetings, or runwork-related errands often create an important question: Can an employer legally require employees to pay for work-related travel expenses out of pocket?
California employment law provides strong protections and reimbursement requirements for employees. Understanding the nuances of those laws can help you recover any reimbursable expenses that you may be owed.
California Law on Work-Related Travel Expenses
California Labor Code § 2802 requires employers to reimburse employees for all necessary business expenses incurred while performing your job duties. Employers cannot require you to waive your right to reimbursement, and company policies cannot override California law.
What Travel Expenses Must Employers Reimburse?
Labor Code § 2802 requires reimbursement for necessary work-related travel expenses, including:
- Mileage when using a personal vehicle
- Gas and fuel costs
- Vehicle wear and tear
- Maintenance and repairs
- Auto insurance attributable to work use
- Parking fees and tolls
- Public transportation fares
- Rental cars used for work
- Lodging and meals during required business travel
Any expense deemed reasonably necessary for job performance must be reimbursed.
Mileage Reimbursement Requirements in California
When you use personal vehicles for work purposes, California law does not require employers to use the IRS mileage rate specifically. California law requires reimbursement that reasonably covers the actual cost of operating a vehicle for work.
Mileage reimbursement is intended to account for costs including:
- Gas
- Depreciation
- Repairs and maintenance
- Tires
- Insurance
- Registration
- General wear and tear
Employers that fail to provide adequate reimbursement may be in violation Labor Code § 2802.
Are Flat Stipends and Allowances Lawful?
Some employers attempt to comply with reimbursement obligations by offering flat gas stipends, monthly vehicle allowances, or all-inclusive travel pay.
Flat stipend arrangements are only lawful when the payment fully reimburses employees for actual work-related expenses.
A flat stipend may violate California law when:
- The amount falls short of real mileage costs
- Employees are forced to pay out of pocket
- The payment remains the same regardless of travel demands
Is Travel Time Paid Work Time?
Travel reimbursement is not the only legal issue. In many situations, travel time must also be paid.
California wage and hour law generally requires compensation when:
- Travel occurs during the workday
- Employees must travel between job sites
- Employees remain under employer control while traveling
- Travel is mandatory and job-related
Failure to pay travel time may result in wage and hour violations, including unpaid minimum wages and unpaid overtime.
What Should Employees Do If an Employer Refuses to Reimburse Travel Expenses?
If you’re facing reimbursement violations, you should document travel-related expenses carefully. Important steps often include:
- Keeping receipts and mileage records
- Recording work schedules and travel demands
- Submitting reimbursement requests in writing
- Consulting an experienced California employment attorney
The legal team at Lawyers for Justice, P.C. can help employees pursue reimbursement, unpaid wages, and other compensation available under California law. Contact our wage and hour attorneys at 818-JUSTICE or complete the online contact form for a free consultation.
Frequently Asked Questions About Work-Related Travel Expenses
Does California law require employers to reimburse travel expenses?
California Labor Code § 2802 requires employers to reimburse employees for necessary work-related expenses, including travel costs incurred while performing job duties.
What types of travel expenses must employers cover?
Employers may be required to reimburse mileage, gas, parking fees, tolls, public transportation costs, and other necessary expenses related to work travel.
Can an employer offer a flat stipend instead of mileage reimbursement?
Flat stipends or vehicle allowances are only lawful when the payment fully reimburses employees for the actual work-related travel expenses incurred.
Is travel time between job sites considered paid work time?
Travel time may be subject to reimbursement when you are required to travel during the workday, between job sites, or remain under employer control while traveling.
What should employees do if an employer refuses reimbursement?
Employees should keep detailed records, submit reimbursement requests in writing, and consult with an experienced California employment attorney to protect their rights.