If you use your personal vehicle for work-related tasks in California, you may be entitled to mileage reimbursement. This includes errands for your employer, traveling between job sites, or attending meetings off-site. Understanding your rights can ensure you’re not left paying out of pocket for job-related expenses.
Below, we break down when reimbursement is required, how it’s calculated, and what the law says—including IRS mileage rates from 2020 to 2025.
When Are California Employees Entitled to Mileage Reimbursement?
Under California Labor Code § 2802, employers are required to reimburse employees for “all necessary expenditures or losses incurred in direct consequence of the discharge of their duties.”
That includes mileage on your personal vehicle when:
- Driving between client meetings or job sites
- Picking up or delivering materials for work
- Traveling for training, off-site seminars, or inspections
- Running errands as requested by your employer
✅ Important: Commuting from home to your regular work location is not reimbursable. But driving between multiple work locations during the day is.
📏 How Is Mileage Reimbursement Calculated?
Most California employers follow the IRS standard mileage rate to reimburse employees. This rate is updated yearly and is considered a fair approximation of costs like gas, wear and tear, insurance, and depreciation.
Employees are typically required to:
- Track miles driven for business purposes
- Submit reimbursement forms or use an app approved by their employer
- Be reimbursed at or above the current IRS rate
Employers may offer less than the IRS rate, but they must prove that the lower rate fully reimburses all reasonable vehicle-related costs—a difficult standard to meet.
IRS Standard Mileage Rates (2020–2025)
| Year | Rate per Mile | Notes |
|---|---|---|
| 2025 | $0.67 | Current rate (as of January 1, 2025) |
| 2024 | $0.67 | Same rate for all of 2024 |
| 2023 | $0.655 | Effective Jan 1 – Dec 31, 2023 |
| 2022 | $0.585 / $0.625 | Jan–Jun: $0.585; Jul–Dec: $0.625 |
| 2021 | $0.56 | Full year |
| 2020 | $0.575 | Full year |
ℹ️ Mid-Year Rate Changes: In 2022, the IRS raised the rate mid-year due to rising fuel costs. This can happen in unusual economic conditions.
Common Employer Violations
Here are a few ways employers get it wrong:
- Failing to reimburse mileage at all
- Capping reimbursement arbitrarily
- Using flat stipends that don’t cover actual expenses
- Denying reimbursement for clearly work-related travel
- Penalizing employees for raising the issue
🔍 If your employer refuses to reimburse work-related mileage, you may have a valid Labor Code § 2802 claim—and could recover unpaid expenses, interest, attorney’s fees, and even penalties.
Tips for Protecting Yourself
- Track Your Miles: Use a spreadsheet, notes app, or mileage tracker.
- Keep Records: Save fuel receipts, service records, and reimbursement forms.
- Submit on Time: Many companies have deadlines for reimbursement claims.
- Ask Questions: If you’re unsure whether something is reimbursable, ask HR.
- Document Denials: If you’re denied, get it in writing if possible.
Class Actions and PAGA Claims for Mileage Reimbursement
Unreimbursed mileage isn’t just an individual problem—it could signal a company-wide violation affecting dozens or even hundreds of employees. In these situations, workers may be able to pursue relief through a class action lawsuit or a PAGA claim under California law.
🔹 What Is a Class Action for Mileage Reimbursement?
A class action allows multiple employees with similar claims to band together and sue their employer collectively. For example, if a company regularly requires field staff, delivery workers, or sales employees to use their personal vehicles without proper mileage reimbursement, all affected employees may be eligible to join.
Key elements:
- The policy or practice must be uniform (e.g., companywide failure to reimburse)
- There must be a significant number of similarly impacted employees
- A class representative (typically one employee) leads the case
🔹 What Is a PAGA Action?
Under the Private Attorneys General Act (PAGA), individual employees can step into the shoes of the state and sue their employer for Labor Code violations—including violations of Labor Code § 2802—for the benefit of all aggrieved employees.
Why PAGA matters:
- No need for class certification
- Penalties are paid to both the state and affected employees
- Can be powerful in enforcing labor standards
PAGA penalties can add up quickly—up to $200 per pay period, per employee. For companies with large workforces, this can result in substantial liability.
Signs You May Be Part of a Larger Mileage Violation
- Everyone is required to drive for work but no one gets reimbursed
- The company issues flat stipends that don’t cover actual mileage
- You were told to just “write off your miles on taxes” instead of being reimbursed
- The same policy has been in place for months or years
If you’ve seen these red flags, it’s possible that you and your coworkers have been systematically underpaid—and you may have the right to bring a broader action.
How EFLL Can Help
At Employees First Labor Law, we fight for workers who’ve been denied proper expense reimbursement, including for mileage. If you were forced to use your car for work and didn’t get paid back fairly, you may be owed compensation.
Whether you’re dealing with misclassification, retaliation for raising concerns, or denied reimbursements, we’re ready to help.
Talk to a California Wage & Reimbursement Attorney Today
If your employer failed to reimburse you for job-related mileage, don’t wait. Time limits apply, and acting quickly may increase your chances of recovery.
👉 Contact Employees First Labor Law for a free consultation.
Let us help you get the reimbursement—and respect—you deserve.
