Wage Law

The IRS mileage rate for business miles was 48.5 cents per mile in 2007. From January 1, 2008 through June 30, 2008, the rate was 50.5 cents per mile. From July 1, 2008 to December 31, 2008, the rate is 58.5 cents per mile. On January 1, 2009, the rate will drop to 55 cents per mile, as follows:

• 55 cents per mile for business
• 24 cents per mile for medical or moving purposes
• 14 cents per mile in service of charitable organizations

The IRS press release can be found here.

In California, the DLSE presumes that employers who reimburse mileage at the IRS rate have correctly reimbursed their employees for expenses incurred in the use of their cars and complied with Labor Code § 2802. However, under Gattuso v. Harte-Hanks Shoppers, Inc. (2005) 133 Cal.App.4th 985, the IRS standard mileage rate may not conclusively establish compliance with Section 2802. If an employee can show that his or her actual expenses exceed 50.5 cents per mile, an employer may have to pay the higher amount.