The Ins and Outs of Mileage Reimbursements Under the Massachusetts Wage Act

Determining Travel Expense and Mileage Reimbursement Requirements Under Massachusetts Wage and Hour Laws

Employees in Worcester, Springfield, Fall River, Pittsfield, Lowell, New Bedford, and Hyannis may be entitled to reimbursement for work related travel expenses including mileage.  

We field a lot of questions from employees about whether an employer has to reimburse them for certain expenses. One of the more common versions of that question comes from an employee who drives frequently during the workday and is not getting reimbursed for mileage. Thankfully, Massachusetts regulation 454 CMR 27.04(4)(b) answers this question.

Does my Massachusetts employer have to reimburse me for mileage and transportation expenses by law?

According to Massachusetts law, “An employee required or directed to travel from one place to another after the beginning of or before the close of the work day shall be compensated for all travel time and shall be reimbursed for all transportation expenses.”  454 CMR 27.04(4)(b). I’ve added that bold to be sure the point is made. That’s a pretty clear answer to this question. In short, according to Massachusetts law, your employer is required to reimburse you for mileage if you drive your car for work purposes during the workday.

Importantly, this requirement only applies to employees applied in an “occupation,” something defined in MGL. ch. 151 s 2, as some employed in:

an industry, trade or business or branch thereof or class of work therein, whether operated for profit or otherwise, and any other class of work in which persons are gainfully employed, but shall not include professional service, agricultural and farm work, work by persons being rehabilitated or trained under rehabilitation or training programs in charitable, educational or religious institutions, work by seasonal camp counselors and counselor trainees or work by members of religious orders. Occupation shall also not include outside sales work regularly performed by outside salesmen who regularly sell a product or products away from their employer's place of business and who do not make daily reports or visits to the office or plant of their employer.

If you aren’t within the scope of the definition of “occupation,” you are not entitled to mileage reimbursement.

How Much Should My Employer Reimburse Me for Mileage Under Massachusetts Law

As explained above, Massachusetts law requires employers to reimburse most of their employees for transportation expenses. The amount of the reimbursement is designed to cover various costs associated with travel, including gasoline, insurance, repairs, lease payments, parking fees, and others. The standard reimbursement rate according to the IRS is 58.5 cents per mile in 2022. Most courts recognize that as the proper amount.

My Employer Doesn’t Reimburse Me for Mileage. What Should I Do?

Under Massachusetts law, employers violate the Massachusetts Wage Act when they fail to reimburse employees for expenses, including for mileage. The Massachusetts Wage Act contains stiff penalties for violations, including that the unreimbursed expense be mandatorily tripled.

These types of claims can have considerable value. If you frequently drive during your workday and are not being reimbursed for mileage, contact us to learn more. This seems especially important for delivery drivers, pizza delivery drivers, visiting nurses, home health aides, salespeople, and others who drive frequently during their workday.

Are you an employee living in Pittsfield, Springfield, Worcester, Lowell, Fall River, New Bedford or the Cape?  Are you not getting reimbursed for travel related expenses to which you are entitled?

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