Alabama’s (AL) Mileage Reimbursement Law
Posted on May 16, 2016 byRachel
How much does an employer have to pay its regular employees for business travel? Actually, the State of Alabama does not govern the minimum rate. In fact there is no law that even requires them to pay any set rate for mileage. Most employers do, however reimburse their employees for travel expenses, including mileage.
I, like so many others, wondered how current gas prices would affect these rates. As it turns out, Alabama follows all federal regulations and has no separate wage and hour laws. In fact, the only law with regard to mileage costs became effective August 1, 1992. The law states that employers must pay mileage costs to injured employees for miles traveled to and from medical and rehabilitation providers. The payout needs to be at the same rate as persons traveling on official state business.
As of January 2003, those traveling on official business for the state or any of its departments or agencies would receive a rate per mile in lieu of actual transportation expenses. Officers and employees of the state are entitled to an allowance for mileage from their base station to the destination location and the return or for miles they actually traveled from home to destination and return, whichever is less.
The rate at which mileage is to be paid will be based on the standard rate set by the IRS. As of January 1, 2006 the current rate is $.445 per mile. Though as late as December of 2005, the set price was 48.5 cents per mile. The IRS will adjust the amount in accordance with the current trend in gas pricing, new car costs, and insurance rates.
In conclusion, with the exception of employees of the state, and those who have been injured on the job, there are no set guidelines that employers have to follow to reimburse their employees for mileage put on personal vehicles for business purposes.
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