Does California Mileage Expense Reimbursement Apply To Sales Reps?

If you travel a lot for work, you generally expect to be properly compensated for travel expenses.

Yet some California employees may not actually receive the proper California mileage expense reimbursement when they travel, though it is legally required by the state.

For employees acting as outside salespeople for their company, California mileage expense reimbursement laws are clear.

According to state law, employers must reimburse outside sales representatives for anything considered a “necessary expenditure,” including mileage.

When it comes to car-related expenses, California employers have several options for how they may reimburse their employees for vehicular expenses.

One method for California mileage expense reimbursement, requires an employee to track the mileage they drive under work-related excursions. The employer multiplies the mileage by a predetermined amount.

For this predetermined amount, most employers will use the mileage rate from the IRS, or Internal Revenue Service.

Other options for employers require employees to track all vehicle-related expenses, including fuel, maintenance, repairs, insurance, and more.

This can be much more complicated. Some use a lump-sum method instead, where the employer gives their employee a lump sum for expenses per month.

Sales representatives included in the California mileage expense reimbursement requirement are those in a variety of fields, including but not limited to telecommunication, pharmaceuticals, advertising, business consulting, banking, and in-home consultations.

Other Reimbursable Work Expenses

Besides California mileage expense reimbursement, other expenses that require reimbursement under California labor laws include those related to gas, vehicles, cell phones, training and seminars, office supplies, internet and computer, and business lunches.

For outside sales representatives who currently work or have worked in California, it may be difficult to tell what your rights are when it comes to California mileage expense reimbursement, and even harder to demand reimbursement from your employer—even if they are legally required to do so by the state.

Sometimes, confronting an employer about reimbursement can be nerve wracking, especially for employees who fear retaliation.

However, if you are an outside sales representatives in California whose employers failed to reimburse expenses, you may be eligible for compensation, and may be able to pursue litigation.

California Employee Expense Reimbursement Laws

California law is designed to prevent employers from avoiding paying “necessary expenditures” for their outside sales representatives, even though some employers may attempt to do so.

The exact wording of California Labor Code 2802 states that “An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer.”

Employees are not even allowed to waive this obligation, so employers that try to trick employees into sacrificing their right to these expenses are still on the hook, and any such waiver is considered void under California labor law.

If you have worked or currently work as an outside sales representative in California and believe your employer failed to properly compensate you according to California mileage expense reimbursement requirements or other reimbursement laws, you may be eligible for compensation.

Join a Free California Outside Sales Expense Reimbursement Class Action Lawsuit Investigation

If you worked as an outside sales representative in California in the last four years and your employer did not reimburse your expenses, your employer may be violating your rights and you may be entitled to compensation.

Get a Free Case Evaluation Now