Travel reimbursements.

Saying existing piecemeal regulations are confusing and inadequate, California's Division of Labor Standards Enforcement has proposed the first-ever comprehensive regulation regarding travel reimbursement expenses for employees.

State law currently requires employers "indemnify" employees for expenditures incurred while on the job. But just exactly how and at what level is not specified.

The most frequently incurred expense is mileage. But the law doesn't set a level for reimbursement. Most employers choose the mileage reimbursement rate established each year by the U.S. Internal Revenue Service. But some employers choose a lower level of reimbursement or decide to throw in a preset mileage allowance as part of an overall compensation package.

"Right now, there's quite a bit of confusion among some of our employer clients about just what they should pay in mileage reimbursements, because there is no law saying you must pay 'x' amount," said Jim Kuns, senior staff consultant with L.A.-based Employers Group, a human resources consulting firm.

The proposed regulation would set the IRS rate as the standard reimbursement rate for work-related vehicle travel. If the employer believes the actual cost to the employee is less than that rate, the employer has the burden of proving this to the state. The same applies to an employee who believes that the IRS rate is not adequate to cover his or her vehicle costs.

"This regulation takes what has generally been accepted practice and puts it down in regulation form that's readily understandable by employers," Kuns said.

Employers must also keep records of the number of miles driven for work purposes by employees in their personal vehicles. The employer in turn may require the employee to submit mileage forms. Those records must then be made available for state inspectors upon request.

The regulation also requires employers to reimburse employees for any meals and parking fees while traveling locally. For more extended trips, the employer has a choice: reimbursing the costs of lodging, car rentals, meals and incidental expenses directly, or using the IRS per-diem rate for that destination.

The proposed regulation is scheduled to be considered at a hearing at Department of Industrial Relations headquarters in San Francisco on Feb. 7. For more information, log onto the department's website at dir.ca.gov.