State Proposes Change in Rules Governing Employee Travel Expense Reimbursement

CalChamber Leading Coalition to Protect Employers

(January 29, 2007) The California Chamber of Commerce is leading a coalition of businesses to protect employers from the unintended consequences of new state-proposed guidelines on how employers should determine and reimburse employees for job-incurred expenses.

Comment on Impact
The California Division of Labor Standards Enforcement (DLSE) has scheduled a public meeting on February 7 to accept comments on its proposal, which could leave the door open for an employee to be reimbursed at a rate higher than the Internal Revenue Service (IRS) mileage rate.

The proposed rules limit the employer's ability to provide reasonable reimbursement for employee-incurred expenses.

The CalChamber is encouraging employers to review the proposal and send comments on its impact to the CalChamber or to the DLSE.

Current law requires that employers reimburse employees for necessarily incurred costs that include reasonable expenses incurred by the employee in direct consequence of his /her duties.

DLSE is proposing regulations to explain the requirements for employers reimbursing employees for expenses connected with the use of a personal vehicle and travel for work, including lodging and meals.

The CalChamber and coalition members will be presenting testimony at the DLSE's February 7 public meeting in San Francisco, which is set to begin at 10 a.m. at the Hiram Johnson State Building Auditorium, 455 Golden Gate Avenue. Testimony may be presented orally or in writing. DLSE requests, but does not require, that persons who present spoken comments at the hearing also submit a written copy.

Deadline
The deadline for submitting written comments is 5 p.m. on February 7. Comments may be submitted by mail, fax or e-mail. Submit comments to:

Susie Smith, Regulations Coordinator,
Division of Labor Standards Enforcement Department of Industrial Relations,
801 K Street, Suite 2100, Sacramento, CA 95814;
E-mail: mailto:sesmith@dir.ca.gov
Fax (916) 322-1267.

To view the proposed regulations, visit the DLSE website at www.dir.ca.gov/dlse/2802Regs.htm.

Staff Contact: Marti Fisher


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