State Mileage Reimbursement Law Matrix
| State | Private Employer Mandate? | Legal Basis | Key Detail |
|---|---|---|---|
| California | Yes | Labor Code §2802 | IRS rate is safe harbor; lump-sum allowances may violate law |
| Illinois | Yes | 820 ILCS 115/9.5 | 30-day submission window; 5% monthly penalty on unpaid reimbursement |
| Massachusetts | Yes | 454 CMR 27.04 / M.G.L. c.149 §148 | Applies to travel during workday (not commuting); treble damages for non-compliance |
| Hawaii | Pending (HB1454) | Modeled on CA/IL/MA | Would require IRS-rate reimbursement if passed |
| New York | No (private) | N.Y. Lab. Law §191-c | State employee travel rates set separately |
| Texas | No (private) | Tex. Gov’t Code §660.026 | State employee rate follows GSA schedule |
| Florida | No (private) | Fla. Stat. §112.061 | State employee rate set by Dept. of Management Services |
| Pennsylvania | No (private) | 4 Pa. Code §40.1 | Commonwealth employee rate follows IRS rate |
| Washington | No (private) | WAC 357-28-050 | State employee rate set by OFM |
Private employer requirements as of May 2026. State-employee travel rates and workers’ compensation mileage rules may apply in specific situations. This table does not constitute legal advice — consult employment counsel for your specific circumstances.
California: The Strictest Standard
California Labor Code §2802 requires employers to indemnify employees for all necessary expenditures incurred in discharging their duties. Courts have interpreted this to include business mileage. The California Supreme Court held in Gattuso v. Harte-Hanks Shoppers (2007) that employers may use the IRS rate as a reasonable proxy, but employees can challenge it if actual vehicle costs exceed the IRS rate.
A 2022 appellate decision (Cacho v. Eurostar) confirmed that lump-sum auto allowances not tied to actual miles driven do not satisfy §2802. California employers should adopt a written policy, reimburse at least at the IRS rate, and maintain clear records of mileage submissions. The right to reimbursement cannot be waived by any agreement, and employees can seek reimbursement for expenses up to 4 years prior.
Illinois: Mandatory with Strict Deadlines
The Illinois Wage Payment and Collection Act (820 ILCS 115/9.5) requires reimbursement of all necessary expenditures incurred within the scope of employment. The law does not set a specific rate, but the Illinois Department of Labor typically references the IRS rate as the benchmark.
Key compliance points: employees must submit mileage documentation within 30 calendar days (unless a written policy allows more time). Failure to reimburse carries a penalty of 5% of the unpaid amount per month, plus potential IDOL fines of $250–$1,000 per violation. A written reimbursement policy is strongly recommended.
Massachusetts: Transportation Expenses During the Workday
Under 454 CMR 27.04, employees required to travel after the beginning of or before the close of the workday must be compensated for travel time and reimbursed for all transportation expenses. The Massachusetts Wage Act (M.G.L. c.149 §148) enforces this — unpaid expenses are subject to mandatory treble (triple) damages plus attorney’s fees.
The law covers mileage, parking, and other travel costs during the workday. Normal commuting between home and a regular worksite is not covered. Massachusetts does not prescribe a specific per-mile rate; the IRS rate is widely accepted as the benchmark.
What About the Other 47 States?
No federal law requires private employers to reimburse mileage. In states without a specific mandate, reimbursement is generally optional — but two risk factors apply: (1) if unreimbursed expenses bring an employee’s wages below minimum wage, the employer may face FLSA liability, and (2) companies operating across multiple states often adopt the strictest standard as a uniform policy.
Even where not required, reimbursing at or below the IRS rate through an accountable plan keeps payments tax-free for both parties. Failing to reimburse means employees bear the cost out of pocket, which may affect retention in competitive labor markets.