California mileage guide covering Labor Code §2802, lawful reimbursement methods, and required expense documentation.
Yes, for job-related driving. California Labor Code §2802 requires employers to indemnify employees for all necessary expenditures incurred in direct consequence of their duties, and §2804 voids any agreement that gives that right up. California sets no cents-per-mile figure for private employment, so a mileage-rate method is benchmarked to the federal rate — 72.5 cents per mile Jan-Jun, 76 cents per mile from Jul 1. Travel to treatment after a work injury runs on the Division of Workers' Compensation's own figure, which the same July 1 change moved to 76 cents per mile.
California has the nation's strictest employee expense reimbursement protections. Labor Code §2802(a) requires employers to indemnify employees for all necessary expenditures incurred in direct discharge of duties. Any contract or agreement waiving this right is null and void under Labor Code §2804.
In the landmark ruling Gattuso v. Harte-Hanks Shoppers, Inc. (2007) 42 Cal.4th 554, the California Supreme Court established three legally permissible methods for vehicle expense reimbursement:
| Reimbursement Method | How It Works | Legal Requirements & Considerations |
|---|---|---|
| 1. Mileage Rate Method | Employer pays a set cents-per-mile rate for substantiated business miles (frequently the IRS rate). | Rebuttable presumption: If the employee proves actual costs were higher, the employer must pay the difference. |
| 2. Actual Expense Method | Employee tracks and submits detailed records of all vehicle expenses (fuel, insurance, repairs, depreciation) multiplied by business %. | Most accurate but administratively burdensome; requires extensive receipt and odometer log tracking. |
| 3. Lump-Sum / Car Allowance | Employer pays a fixed periodic amount (e.g., $400/month) or increased salary/commission. | Must be separately identified and objectively calculated to cover all actual expenses; cannot dilute minimum wage. |
Three lawful vehicle expense reimbursement methods under California Supreme Court precedent (Gattuso v. Harte-Hanks).
California publishes no cents-per-mile rate for private employment, so the number depends on the method the employer chose. A mileage-rate method is usually benchmarked to the federal standard rate, which is 72.5 cents per mile for January through June 2026 and 76 cents per mile from July 1.
Workers' compensation travel is the exception. The Division of Workers' Compensation publishes the rate for medical and medical-legal travel, ties it to the IRS figure, and pays it for travel on or after the effective date regardless of when the injury happened.
| Method or program | 2026 figure | Where the number comes from |
|---|---|---|
| Mileage rate method (private employment) | 72.5 cents per mile Jan-Jun; 76 cents per mile from Jul 1 | The employer's chosen rate, normally the federal standard rate as a safe-harbor benchmark |
| Actual expense method | Recorded cost × the vehicle's business-use percentage | Labor Code §2802 — what the employee actually spent |
| Lump sum or car allowance | A fixed periodic amount | Must be separately identified and reasonably related to the actual cost (Gattuso) |
| Workers' compensation medical and medical-legal travel | 72.5 cents per mile Jan-Jun; 76 cents per mile from Jul 1 | Division of Workers' Compensation, tied to the IRS rate by Labor Code §4600 and Government Code §19820 |
California reimbursement figures for 2026, by method and by program.
The federal standard rate is not required by California statute, but it is widely used as a safe-harbor benchmark. When an employer pays at the federal rate (72.5 cents per mile Jan-Jun, 76 cents per mile from Jul 1), a California claim at that figure is presumptively reasonable.
The floor is what the vehicle actually cost. Where the employer requires an expensive vehicle, or fuel, maintenance and insurance run above the per-mile figure, the employee can submit those costs and claim the difference under §2802.
Statutory requirement for indemnification of employee expenses.
California Supreme Court ruling establishing the 3 lawful reimbursement methods.
DLSE enforcement guidelines on wage deductions and expense reimbursements.
DWC's January newsline, which set the first-half figure for medical and medical-legal travel and ties the rate to the IRS publication.
DWC newsline on the mid-year increase to 76 cents per mile for medical and medical-legal travel.
Yes, but only if the lower rate fully covers all actual expenses incurred by the employee (gas, maintenance, insurance, depreciation). If the lower rate results in an underpayment, the employer violates California Labor Code §2802.
No. Under California Labor Code §2804, any agreement by an employee to waive their right to expense reimbursement under §2802 is completely void and unenforceable as against public policy.
No. Bridge tolls, highway tolls, and parking fees incurred for business purposes must be reimbursed separately on top of any per-mile vehicle reimbursement.
The Division of Workers' Compensation rate, which follows the IRS figure: 72.5 cents per mile for travel from January 1 through June 30, 2026 and 76 cents per mile for travel on or after July 1, 2026. It is payable regardless of the date of injury.
Calculate estimated reimbursement, review official rate tables, or download log templates.