IRS Raises Mileage Rate to 55.5 Cents Per Mile

The Internal Revenue Service just announced a midyear increase in the standard mileage rate to 55.5 cents per mile. The new rate takes effect on July 1, 2011. It applies to all business miles driven from July 1, 2011, to December 31, 2011.*

The IRS rate is optional. If an employer uses a lower mileage rate than the IRS rate, the employer must show that its rate is sufficient to reimburse employees for their actual expenses.
The IRS made the midyear adjustment because of the recent increases in gasoline prices.

The rate hike adds 4.5 cents to the current rate of 51 cents per mile for the first six months of 2011. The IRS press release is available on the IRS website.

Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel

*The law requires employers to reimburse employees for certain expenses. CalChamber members can learn more about this legal requirement from HRCalifornia. Not a CalChamber member? Test-drive HRCalifornia with a 15-day Free Trial. 

Ninth Circuit Changes Its Mind on Commute Issue in Lojack Case

In October of last year, we informed you of the Ninth Circuit's ruling in Rutti v. Lojack Corporation. The case looked at several issues related to how the company compensated certain nonexempt employees for activities engaged in before or after their "on-the-clock" time. The Court initially found the company might have to pay Rutti for his "after-work" upload of a report. However, the Court found Rutti's commute to and from work in the company vehicle was not compensable, even though he was required to drive the company vehicle, could not stop for personal errands, could not take passengers, and was required to drive directly from home to his job and back. He also could not use his cell phone while driving except that he had to keep his phone on to answer calls from the company's dispatcher.

On reconsideration, one judge changed her mind about the commute time, which gave the Court majority to the plaintiff in the case. The new opinion holds that, under California law, employees must be compensated whenever they are under their employer's control. The level of the employer's control determines whether an employee has to be compensated for his or her time. In Rutti's case, the Court found that he was under the employer's total control during his commute, so Rutti had a valid state law claim for compensation during his commute time.

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Spanish Forms

Original posting: Friday, January 25, 2008 -- Did you know CalChamber has almost 300 forms for use by its members? From sample policies to employee notification forms and checklists, there are forms to meet many of the needs employers face.

We also have forms available in Spanish, including harassment complaint forms and make-up time requests. If you have Spanish speaking employees, check out these forms on HRCalifornia under "Forms and Checklists"!