Mileage Reimbursement Laws Governing Businesses in the State of North Carolina

The state of North Carolina does not have any laws governing mileage reimbursement except with respect to Workers Compensation. There is no minimum amount set forth or enforced by the state. In Fact, the Department of Labor Industrial Commission specifically states that An employer is not required to pay its employees more in wages than is required by the minimum wage and overtime pay provisions. The giving or not giving of promised wages, including wage benefits, is entirely up to each employer. “Promised wages” can be an hourly rate that is more than the minimum wage, overtime pay for certain days worked rather than the statutory requirement of paying overtime pay for the hours worked in excess of 40 in a workweek, shift differential pay, commissions, bonuses, piece-rate, production pay, a weekly salary, a monthly salary, or mileage expenses.

I have found that most employers do pay for mileage expenses even if they are not bound by law to do so. Some employers pay a fixed daily or monthly rate such as in cases of employees traveling to multiple worksites on a regular basis. Most employers pay their employees at a rate close to that set by the IRS. The IRS sets an optional standard mileage rate annually based on a number of factors. This is the maximum amount allowed as a deductible expense. If you are paid at a rate lower than the amount, which is currently set at $.445 than you may claim the difference, but if you are paid at a higher amount, then you may be subject to report the excess as wages earned.

Employees are entitled to collect for mileage for medical treatment in workers’ compensation cases at a rate of 44.5 cents a mile for travel on or after January 18, 2006, provided they travel 20 miles or more round trip. Special consideration will be given to employees who are totally disabled.

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