Can a company pay certain employees who have newer cars a higher mileage reimbursement?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a company pay certain employees who have newer cars a higher mileage reimbursement?

Each month, employees who have cars that are 9 years or less old get an additional $300 for using their personal car, plus 15 cents a mile. If you have an older car, you are only paid the 15 cents per mile. Is this allowed under state law?

Asked on May 31, 2012 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Employers do not have to pay mileage reimbursement at all--it is completely voluntary on their part, and many employers do not provide this. Since it is voluntary on their part, employers are free to determine how much to pay, and are also free to adopt rules treating employees differently, so long as the distinction is not based on one of a small number of specifically protected categories: e.g. employee race, religion, sex, age over 40, or disability. However, no law protects people on the basis of how new or old their cars are, so an employer may legally treat employees differently on this basis.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption