Mileage Rate for Business Travel Expenses Increases January 1, 2024

Last Updated 12/20/2023


With the new year approaching, our goal has to been to alert you to many of the upcoming changes that employers should know about, particularly in the way of new employment laws that affect your handbooks and other workplace policies. 

Now here is another one to add to your naughty and nice list: While there are no federal laws requiring employers to reimburse their employees’ mileage, California law requires mileage reimbursement.  Reimbursement is based on IRS figures which are typically revisited annually to account for fuel prices and other economic factors.  Effective January 1, 2024, the mileage rate for the use of a car (electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles; it also includes vans, pickups or panel trucks) will be:

  • 67 cents per mile driven for business use, which is up 1.5 cents from 2023

So what is considered business mileage? Under California Labor Code 2802, the employer must reimburse their employees for vehicle expenses if they are required to use their personal vehicle for work-related activities.  Examples include work errands, business trips and travel between fields during the workday.  It does not, however, include commuting to and from work.

Please give Rosasco Law Group a call with any questions you may have about the myriad of upcoming 2024 changes.  We will help you navigate the new laws to avoid any legal pitfalls.

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