What are the Rules for Expense Reimbursement for Miles in California?

As an outside salesperson in California, there are specific rules set in place that govern expense reimbursement for miles.

A number of different categories of outside sales reps are included in these rules and covers such areas such as pharmaceutical sales, telecommunications, banking and escrow, business consultants, advertising, consultants that provide in-home services and other industries.

What Types of Expenditures Qualify for Reimbursement?

Under California law, various expenditures incurred by outside sales representatives qualify for reimbursement.

These expenditures are included under California Labor Code 2802, which states “an employer shall indemnify his or her an employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or his or her obedience to the directions of the employer.”

Employers may attempts to skirt this law by having employees sign a contract in an attempt to waive the rights granted to the employee, but such contracts are not enforceable and are void.

Specific expenses that qualify to be reimbursed by the employer include:

• Expenses for mileage traveled
• Expenses related to car and gas
• Expenses related to training or seminars attended
• Expenses for cell phone use
• Expenses related to computer and Internet use
• Expenses related to office supplies
• Expenses related to business lunches or other meals discussing business issues

California law also states that these expenses must be reimbursed even if outside sales reps do not file expense reports. It is the obligation of the employer to ensure that employees are compensated for any eligible expenses incurred.

California Expense Reimbursement for Miles Guidelines

There are multiple ways that a California employer may choose to reimburse employees for miles incurred. Often times, this also includes other expenses relating to the operation of a personal vehicle.

The miles traveled do not include using a personal vehicle to commute between home and work but do include miles traveled otherwise.

The most common way to reimburse employees is the mileage reimbursement method that requires employees to keep track of the miles they drove on their vehicle to perform work-related activities. The number of miles and then multiplied by the mileage reimbursement rate set forth by the Internal Revenue Service.

The mileage reimbursement rate takes into account factors other than just reimbursement field cost, but also at the cost of depreciation as well as maintenance and repairs that are likely to be incurred on the vehicle.

Another method used to calculate expense reimbursement for miles is the actual expense method. This method is less often used because of the cumbersome nature of the record-keeping required.

The lump-sum method may also be used, and this is where an employer pays the employee fixed amount for expenses related to the use of personal vehicle that is based on the anticipated job duties of the employee.

Again, it is not up to the employee to make sure that expense reimbursement for miles is received, as this is the responsibility of the employer of an outside sales representative.

Filing a Lawsuit over Expense Reimbursement for Miles

Outside sales reps who are California residents who have not received expense reimbursement from miles or other eligible expenses incurred during the last four years of employment may be eligible to seek legal compensation. An experienced attorney will review your individual situation at no charge and can insist you in exploring the legal options that are available to you.

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