Rules of Travel Reimbursement Policy in California

The rules of travel reimbursement policy in California are important for sales representatives to know, so they can make sure they are being properly compensated for their expenses.

According to the California Labor Code, employers are required to reimburse workers for work-related use of a personal vehicle.

The specific section of the code where this is stated is Labor Code Section 2802:

“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, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful.”

While employers are required to provide compensation according to travel reimbursement policy in California, this does not include the use of a personal vehicle for the commute to and from work.

There are several methods of reimbursement that are acceptable to uphold travel reimbursement policy in California.

The first of these methods is the mileage reimbursement method, in which employees track the mileage they use for work-related transit. The mileage is given to the employer, who multiples this by the current IRS mileage reimbursement rate.

In coming up with the current mileage reimbursement rate, the Internal Revenue Service factors in depreciation, maintenance and repairs, and the cost of fuel. The mileage reimbursement method is a common one in its simplicity and universality.

A second method is the actual expense method, in which employees are required to keep track of all actual expenses. The drawback of this method, despite its accuracy, is that it can be difficult to keep track of every vehicle expense.

The lump-sum method is more simple, and just requires that an employer pay a fixed amount each month for their employees’ personal vehicle expenses.

Though travel reimbursement policy in California is clear, and these varying methods of reimbursement are fairly simple, some California employees may not actually be receiving proper mileage expense reimbursement.

California sales representatives who may not have been compensated according to travel reimbursement policy in California may be able to pursue litigation against their employer.

Indeed, travel reimbursement policy in California is designed in order to prevent employers from skirting around paying their employees’ “necessary expenditures.”

Still, some employers have tried to avoid properly reimbursing their workers. Some may do this by having employees sign waivers agreeing to forfeit vehicle expenditure compensation. However, even in these cases, employers are still on the hook. These kinds of waivers are considered invalid according to California labor laws.

If you have worked or currently work as an outside sales representative in California and believe your employer failed to give proper compensation to you according to travel reimbursement policy in California or other reimbursement laws, you may be eligible for compensation, or even able to pursue litigation.

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.

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