California mileage reimbursement law (Labor Code 2802)
California mileage reimbursement is required by law: Labor Code section 2802 makes employers pay back the necessary costs of doing your job, including driving your own car for work. California doesn’t set its own rate for private employers. Most use the IRS rate, 76 cents a mile from July 1, 2026 (72.5 cents from January through June), but the payment has to cover your actual costs.
On this page (9 sections)
This is not legal advice. We summarize the law and the main California Supreme Court ruling in plain words, checked in November 2026. For your own case, contact the California Labor Commissioner’s Office or an employment lawyer.
What Labor Code 2802 requires
Labor Code 2802 says an employer must indemnify (pay back) an employee for all necessary expenditures or losses that come as a direct result of doing the job, or of following the employer’s directions. In short:
- It covers employees, not independent contractors.
- It covers necessary work costs. Using your own car for work trips is the most common one.
- Interest: an amount awarded for unpaid expenses earns interest from the date you incurred the expense (§2802(b)).
- Attorney’s fees: the reasonable cost of enforcing your rights, including attorney’s fees, counts as a necessary expense too (§2802(c)).
- Enforcement: the Labor Commissioner can issue citations (§2802(d)).
The California mileage rate in 2026
There is no California mileage rate for private employers. Labor Code 2802 sets no number. Employers that pay per mile usually use the IRS rate, because it is the most they can pay without the payment becoming taxable wages:
| Miles driven | Rate per mile |
|---|---|
| January 1 – December 31, 2025 | 70¢ |
| January 1 – June 30, 2026 | 72.5¢ |
| From July 1, 2026 | 76¢ |
Sources: IRS Notice 2026-10; IRS Announcement 2026-11. Every rate by date: IRS mileage rate.
The California state mileage rate for state employees is set by CalHR (the California Department of Human Resources), and it follows the federal rate: 76 cents a mile from July 1, 2026. That rate is for state employees. It isn’t a rule for private employers.
Example: you drive 300 work miles in August 2026, and your employer uses the IRS rate. 300 × $0.76 = $228.00. The mileage reimbursement calculator does the math for any dates.
Three ways to reimburse: Gattuso v. Harte-Hanks
In Gattuso v. Harte-Hanks Shoppers (2007), the California Supreme Court described three ways an employer can pay for an employee’s car use:
| Method | How it works | What to know |
|---|---|---|
| Actual expenses | The business share of your real costs: gas, maintenance, insurance, registration, depreciation | The most accurate, and the most work for both sides |
| Mileage rate | Business miles × a rate per mile, often the IRS rate | The rate has to cover your actual costs. If you show they are higher, the employer must pay the difference. |
| Lump sum | A car allowance, or higher pay or commission that includes car costs | The employer must show which part of the pay is reimbursement, and it must fully cover your actual costs |
Source: Gattuso v. Harte-Hanks Shoppers, Inc. (2007) 42 Cal.4th 554.
So paying the IRS rate is common and accepted, but it isn’t a safe harbor. A driver whose costs are higher, for example because of very expensive insurance or a heavy work vehicle, can ask for more by showing the real numbers.
Which miles count
Labor Code 2802 doesn’t list trip types. It covers costs that come as a direct result of doing the job. Driving between job sites, to clients, or on errands for your employer during the day clearly fits. Whether another trip counts, such as a drive from home to a site other than your usual workplace, depends on the facts. Your normal drive from home to your regular workplace is usually treated as a commute; for how the IRS defines it, see commuting miles.
Keep a mileage log with the date, start and end points, purpose, and miles of each trip. It is your evidence if there is a dispute.
You can’t give up the right
Labor Code section 2804 makes any agreement to waive these rights void, whether written or not. A clause in an offer letter saying “employees pay their own car costs” doesn’t change what the law requires.
Gig drivers under Prop 22
App-based rideshare and delivery drivers in California who work as independent contractors under Proposition 22 aren’t covered by Labor Code 2802. Instead, Prop 22 sets minimum pay that includes a per-mile amount for engaged miles. The State Treasurer set it at $0.37 a mile for 2026, adjusted each year for inflation. That is part of your pay, not a reimbursement; for taxes, you still log and deduct your business miles. See DoorDash mileage.
How to ask for reimbursement
- Read your employer’s expense policy and use its form or deadline.
- Submit your miles in writing: a mileage reimbursement form with the trip-by-trip log behind it. Keep copies.
- If your costs are higher than the rate you are paid, list the real costs with receipts.
- If the employer refuses, you can file a wage claim with the California Labor Commissioner’s Office or talk to an employment lawyer. Time limits apply, so don’t wait.
Rules in other states are on the mileage reimbursement laws page. How reimbursement is taxed is in employee mileage reimbursement rules.
FAQ
Does California require employers to pay mileage?
Yes, when you use your own car for work. Labor Code 2802 requires employers to pay back necessary work expenses, and driving for the job is one of them. The employer can use actual costs, a per-mile rate, or a lump sum, as long as it fully covers your costs.
What is the California mileage reimbursement rate for 2026?
California doesn’t set one for private employers. Most use the IRS rate: 72.5 cents a mile for January through June 2026, and 76 cents from July 1, 2026. State employees get the federal rate through CalHR.
Can a California employer pay less than the IRS rate?
Only if it still covers your actual necessary costs. If you can show your real costs are higher than what you are paid, the employer must make up the difference.
Is a car allowance legal in California?
Yes, if it fully covers your actual costs and the employer can show which part of your pay is the reimbursement. If the allowance falls short, the employer owes the rest.
Does Labor Code 2802 cover remote workers’ trips to the office?
The law doesn’t answer this directly; it depends on whether the trip is a direct result of the job, such as a required visit to a place other than your usual workplace. Ask the Labor Commissioner’s Office or an employment lawyer about your case.
Sources
- California Labor Code §2802 (indemnification of employee) (checked November 12, 2026): leginfo.legislature.ca.gov
- California Labor Code §2804 (waiver void) (checked November 12, 2026): leginfo.legislature.ca.gov
- Gattuso v. Harte-Hanks Shoppers, Inc. (2007) 42 Cal.4th 554 (checked November 12, 2026): scocal.stanford.edu
- California Department of Human Resources, 2026 updated mileage reimbursement rates for use of personal vehicle (checked November 12, 2026): calhr.ca.gov
- California State Treasurer, Per-mile compensation annual adjustment for app-based drivers (Prop 22) (checked November 12, 2026): treasurer.ca.gov
- California Labor Commissioner’s Office (wage claims) (checked November 12, 2026): dir.ca.gov
- IRS, Notice 2026-10 and Announcement 2026-11 (2026 rates): irs.gov