Legal Question in Employment Law in California
Mileage Reimb in place of Earned Wages?
Can an employer pay mileage reimbursement in place of earned wages? For example: A non-exempt employee worked 20hrs @ $10/hr=$200.00. Reported 400 miles driven @ .31/mile=$124.00. Pay check lists $76 earned wages, ($200-$124=$76), and $124 paid as mileage reimb. Isn't mileage reimb. supposed to be in addition to earned wages, not in place of? With a gross listed as $76, that makes the hourly rate for time worked $3.80/hr, and dollars listed as paid mileage reimb., isn't really reimbursed at all. What can I do about this to make it right?
2 Answers from Attorneys
Re: Mileage Reimb in place of Earned Wages?
In CA, mileage reimbursement is in addition. Must be paid for hours worked. Do not understand what was done. Need more info. Call to discuss if you wish. Does not make sense.
Re: Mileage Reimb in place of Earned Wages?
Wage laws require an employee to be paid at least minimum wage. In addition, an employer must indemnify its employees for all expenses associated with their job duties. The practice you describe in your question would violate the minimum wage law in California. In addition, the $.31 per mile used in your example may not be sufficient reimbursement. If you are experiencing this type of payroll plan, consult with an employee rights attorney in your area or contact the Division of Labor Standards Enforcement.
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