In this guide10 sections
If you drive your own car for work in California, your employer generally must reimburse you for those miles. Labor Code §2802 requires employers to cover the necessary costs of doing your job, and driving between job sites, to clients or on errands for your employer counts. Your ordinary commute usually doesn’t. Many employers pay the IRS mileage rate, which is 76 cents a mile for driving on or after July 1, 2026.
Key takeaways
- Labor Code §2802 requires your employer to reimburse all necessary expenses you incur doing your job, including work driving in your personal vehicle.
- Most employers use the IRS business mileage rate: 72.5 cents a mile for January through June 2026 and 76 cents a mile from July 1, 2026.
- A flat car allowance or a lower per-mile rate is generally allowed only if it actually covers your reasonable costs. You can’t waive your right to full reimbursement (Labor Code §2804).
- Unpaid reimbursement earns interest from the date you spent the money, and you may recover attorney’s fees and costs if you have to enforce it.
- Keep a mileage log. It is the single most useful piece of evidence in a reimbursement claim.
What California law requires
Under Labor Code §2802, an employer must indemnify you for “all necessary expenditures or losses” you incur in direct consequence of doing your job. When the job requires you to drive and you use your own car, the cost of that driving is your employer’s expense, not yours.
The law has teeth. Reimbursement awarded by a court or the Labor Commissioner carries interest from the date you incurred the expense (§2802(b)). “Necessary expenditures” also include reasonable costs of enforcing your rights, including attorney’s fees (§2802(c)). And under Labor Code §2804, any agreement to give up these rights, written or implied, is void.
Mileage is one part of a broader rule that also covers work cell phones, home-office costs, tools and uniforms. Our guide to work expense reimbursement in California covers those.
What driving counts
| Trip | Generally reimbursable? |
|---|---|
| Driving between job sites or stores during the day | Yes |
| Visiting clients, customers or patients | Yes |
| Picking up supplies, parts or deliveries for your employer | Yes |
| Bank runs, mail runs and other errands your employer asks you to do | Yes |
| Driving to off-site training, meetings or work events | Usually yes |
| Your normal commute between home and your regular workplace | Generally no |
| Personal stops during the workday | No |
The line is whether the driving was done because of your job. If your employer requires the trip, or the work can’t realistically be done without it, the cost is generally a necessary business expense.
How much your employer must pay
California law doesn’t set a fixed per-mile number. What it requires is full reimbursement of your necessary costs: fuel, maintenance, tires, insurance and depreciation for the work miles. Employers usually meet that duty in one of three ways:
- The IRS standard mileage rate. This is the most common method because the rate is designed to reflect the full cost of operating a car.
- Actual expenses. Your employer reimburses the actual costs tied to your work miles. This requires detailed records.
- A flat allowance or a lower rate. This is generally permitted only if it fully covers your reasonable costs. If it falls short, you can claim the difference, and the agreement you signed doesn’t waive it.
Here are the IRS business rates for recent years. The Division of Workers’ Compensation uses the same rate for medical travel and confirmed the 2026 figures in its January 2026 and July 2026 announcements.
| Period | IRS business rate per mile |
|---|---|
| 2024 | 67 cents |
| 2025 | 70 cents |
| January 1 – June 30, 2026 | 72.5 cents |
| July 1, 2026 and later | 76 cents |
An example
Here is a hypothetical. Andre is a home health aide who visits four patients a day in his own car, driving about 45 work miles a day, five days a week. His employer pays a flat $150 a month “car allowance.”
In August 2026, Andre drives about 990 work miles (45 miles × 22 workdays). At 76 cents a mile, that’s $752.40. His allowance covers $150, leaving about $602 a month unreimbursed. Unless the employer can show $150 really covers his costs, Andre may have a claim for the difference, plus interest. Over a year, a gap like that can run into thousands of dollars.
Common reimbursement violations
- No reimbursement at all, often because the employer says driving is “part of the job.”
- Flat stipends that don’t match the miles, especially for workers whose routes grow over time.
- Arbitrary monthly caps, such as paying for the first 200 miles only.
- Refusing trips that were clearly for work, such as driving between two stores during a shift.
- Telling you to “write it off on your taxes” instead of paying you. A tax deduction isn’t a substitute for reimbursement under §2802.
- Punishing you for asking. Complaining about unpaid reimbursement is protected. Labor Code §98.6 bars retaliation for wage-related complaints, and §1102.5 protects reports of suspected legal violations.
If you get into a crash while driving for work, a separate set of rules applies. See car accidents while driving for work. Mileage to workers’ comp medical appointments is also covered under different rules; see mileage reimbursement for workers’ comp appointments.
How to get reimbursed, step by step
- Keep a mileage log. Record the date, start and end points, purpose and miles for every work trip. A phone app or odometer photos help.
- Read your employer’s policy. Note the rate, any caps and the deadline for submitting expenses.
- Submit on time and in writing. Keep copies of every expense report.
- Get denials in writing. If your employer refuses or cuts a claim, ask for the reason by email.
- Raise the shortfall. Many problems are fixed once someone points to §2802. Keep the conversation in writing.
- File a claim if needed. You can file a claim with the Labor Commissioner or bring a lawsuit. Compare the options in Labor Commissioner wage claim vs. hiring a lawyer.
Deadlines and bigger claims
A §2802 claim is a liability created by statute, so it generally carries a three-year deadline (Code of Civil Procedure §338(a)). In court, an Unfair Competition Law claim can reach back four years (Business and Professions Code §17208). Each month you wait can mean a month of reimbursement you can no longer recover.
When an employer underpays mileage for a whole group of drivers, the problem is often a company policy rather than a one-off mistake. Those cases may be brought as class actions or under the Private Attorneys General Act, which lets workers recover civil penalties on behalf of the state. Learn more about PAGA and class actions.
Frequently asked questions
Does my employer have to pay the IRS rate?
No. The IRS rate is the most common method, but not the only one. Whatever method your employer uses must fully reimburse your necessary costs. If a lower rate or flat allowance falls short, you can claim the difference.
Is my commute reimbursable?
Generally no. Driving between home and your regular workplace is usually treated as personal. Driving during the workday, or to places other than your regular workplace because the job requires it, is a different matter.
I signed an agreement saying mileage is included in my pay. Is that valid?
Labor Code §2804 makes any agreement to waive §2802 rights void. If your pay is supposed to include reimbursement, the employer generally must be able to show which part is reimbursement and that it is enough to cover your costs.
How far back can I claim unpaid mileage?
Generally three years, and up to four years for some claims filed in court. Interest runs from the date you incurred each expense.
Can I be fired for asking to be reimbursed?
Firing or disciplining you for raising unpaid reimbursement can violate California’s anti-retaliation laws. If that happens, keep your expense reports, emails and notes of what was said and when.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively in wage and hour cases, including unpaid mileage and expense reimbursement. We offer free virtual consultations to review your mileage, pay records and options. Contact us online or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
