The California Division of Labor Standards Enforcement ("DLSE") recently issued proposed regulations that deal with an employer's obligation to reimburse its employees for business-related travel expenses (e.g., mileage, lodging, food, tolls, parking, telephone, etc.) by identifying the various rates and methods that may be used. 

The public comment period on the proposed regulations closed on February 7, 2007, and the DLSE has not yet announced whether it will adopt or abandon them. The proposed regulations are of no effect unless adopted by the DLSE and approved by the Office of Administrative Law.

If approved, the proposed regulations could have an immediate impact on the proper calculation of business expense reimbursements. The Labor & Employment attorneys at Allen Matkins are closely monitoring this issue and will provide further information to their clients in the event the proposed regulations become law.

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