Mileage reimbursement rules are mostly state‑specific in the U.S. Some states have explicit statutes or regulations requiring reimbursement of necessary work expenses, while others rely on employer policy or wage‑and‑hour rules. This guide gives a practical overview of the most‑asked‑about states and how to stay compliant.
This article is general information, not legal advice. Laws and interpretations can change, so confirm rules for your state or speak with counsel.
Quick view: what “required reimbursement” usually means
When a state requires reimbursement, it typically covers necessary expenses incurred to do the job, which can include business miles driven in a personal vehicle. Employers can often set a reasonable reimbursement policy and require documentation.
California (CA)
California Labor Code § 2802 requires employers to indemnify employees for necessary expenditures or losses incurred in performing job duties or following employer directions. That can include business mileage when employees use their own car for work.
Practical takeaway: If employees are required to drive for work, reimbursement is generally required. A written policy and proper documentation help keep things clean.
Illinois (IL)
Illinois’ Wage Payment and Collection Act requires reimbursement of necessary expenditures directly related to an employee’s services, and it defines “necessary” as reasonable expenses required to do the job and primarily benefiting the employer. The law also allows employers to set a written policy and requires employees to submit documentation (typically within 30 days unless the policy allows longer).
Practical takeaway: Reimbursement is mandatory for required business expenses, and employers should maintain a clear, written policy.
Massachusetts (MA)
Massachusetts regulations on travel time require reimbursement of transportation expenses in specific scenarios, such as when an employee who normally works at a fixed location is required to report elsewhere and travel time exceeds the ordinary commute, or when an employee is directed to travel during the workday.
Practical takeaway: In MA, reimbursement can be triggered by changes to work location or travel during the workday. Documenting miles and the reason for travel is important.
What about other states?
Many states do not have a broad mileage‑specific reimbursement law, but employers still need to avoid policies that could drop employees below minimum wage or violate expense‑reimbursement rules in their state. If you have a multi‑state team, check the rules for each state and adopt a policy that meets the strictest requirements.
Best practices for employers
- Use a written reimbursement policy that defines what counts as reimbursable mileage
- Require basic documentation (date, destination, business purpose, miles)
- Pay on a consistent schedule and keep reimbursement records
- Use a reasonable per‑mile rate (many employers use the IRS standard rate as a safe benchmark)
If you’re setting a policy, our IRS Mileage Reimbursement Guide explains the federal standard mileage rate and how employers commonly apply it.
