What is the average mileage reimburse rate?

Question

We want to pay our labor to and from job sites a mileage reimbursement. Does anyone know the rate or can give me a site that may help? We are located in Alabama.

And if we pay the mileage reimbursement, do we also have to pay drive time wages?

Answer 1

Since you already have the answer for the mileage, I can only provide the link to the DOL for the commuting question.

http://www.dol.gov/esa/regs/compliance/w...

If the travel is to the job site from a central office (if they come in before going to the site), then it should be considered compensable, under FLSA guidelines. If they are traveling directly to a job site from their home, and they return to their home at the end of the day, then it is probably not compensable. If the travel is an abnormally long trip, then the mileage could make up for that, if they count from home to the job site, and back, and then you could not pay the wages.

Also check out this link:

http://www.fels.org/News/news9809.htm#TO...

The courts ruled that time on a bus for farm workers could not be considered compensable time, even though they were "under control of their employer."

If you are still in doubt, take a few moments to call Alabama's Dept of Labor and get it straight from the horse's mouth. They will help you determine if your commuting employees should be paid or not for their drive time.

Answer 2

2008 business mileage is 50.5 cents per mile.  This would cover gas, insurance, and wear and tear on the employee's personal vehicle.  Tolls and parking are usually seperate.

I am not aware of any statutes requiring an employer to pay commuting costs.

Answer 3

The IRS set the 2008 rate for reimbursement at 50.5 cents per mile. The link to their announcement is here http://www.irs.gov/newsroom/article/0,,i...