I have updated information about the California mileage rate and reimbursement rules over at Lawzilla. In short – here is the unexpected gotcha in California:
California law requires employers to reimburse their employees for all work related expenses. For auto expenses, the IRS mileage rate is often conveniently used.
However, the law requires reimbursement of all expenses – not just gas. As gas prices rise, the cost of gas, plus the general cost of operating a vehicle, can exceed the amount provided by the IRS mileage rate.
Many, many employers do not know this, and are liable to look cross-eyed at an employee claiming more than the IRS mileage rate due to high gas prices, plus oil, insurance, and other expenses. But if they don’t properly pay, or retaliate against the employee, the repercussions can be severe.