Mileage Reimbursement for Construction Crews

For the bigger picture, see our guide to construction expense management for under $10/user (2026). For a complete overview, see our expense management guide.

1. The rate for medical and moving expenses also changes: 20.5 cents per mile from January 1 to June 30, 2026, and 23.5 cents per mile from July 1 to December 31, 2026. Charitable organizations use a fixed rate of 14 cents per mile, which applies year-round.

Check if Reimbursement is Legally Required

Reimbursement for business use of personal vehicles is not always mandatory. You need to verify if your employees are entitled to reimbursement based on the laws in your state. Here are some guidelines to help you determine if reimbursement is legally required:

• Check if unreimbursed expenses cause an employee's effective wage to fall below the federal minimum wage of $7.25 per hour. If yes, reimbursement is required by the Fair Labor Standards Act (FLSA).
• Check if you operate in California. California Labor Code §2802 requires employers to indemnify employees for all necessary expenditures or losses incurred in direct consequence of their duties, which includes unreimbursed business use of personal vehicles.

Keep in mind that these are general guidelines, and reimbursement laws may vary depending on your state or locality. You should consult with a qualified attorney or tax professional to ensure compliance with all applicable laws.

Document Business Mileage and Expenses

1. Keep detailed records of business mileage and expenses. Business mileage includes travel from a normal office location to a secondary office, for client meetings or business conferences, and from home to a temporary office.
   • Record the date, starting and ending odometer readings, and the business purpose of each trip.
   • Save receipts for fuel, maintenance, and tolls.
2. Do not include daily commutes from home to a normal office as business mileage.
3. If you are self-employed and use your home as the primary office, you can deduct mileage between home and another work location for the same business.

Choose the Right Mileage Tracking Method

Mileage tracking methods can vary, but the key is to choose one that is easy to use and accurate. Consider using a mileage log or spreadsheet to record your employees' business miles. This can be done manually or digitally.

Here are some methods to consider:

• A paper log: Keep a notebook or logbook in the vehicle to record miles driven, date, and purpose.
• A spreadsheet: Use a spreadsheet like Excel to create a template for tracking mileage.
• A mileage tracking app: There are many apps available that allow employees to easily log their miles, such as apps for smartphones or tablets.

Regardless of the method chosen, make sure it includes the following information:

1. Date
2. Miles driven
3. Purpose of the trip
4. Receipts (if applicable)

It's also a good idea to set a regular reminder for employees to submit their mileage logs for reimbursement. This can be done weekly, bi-weekly, or monthly, depending on the company's needs.

Comply with State-Mandated Reimbursement Laws

Some states have their own reimbursement laws that may be more stringent than federal requirements. Currently, ten jurisdictions have affirmative reimbursement duties that go beyond the federal floor:

• California
• Illinois
• Massachusetts
• Montana
• New Hampshire
• North Dakota
• South Dakota
• Iowa
• the District of Columbia
• the City of Seattle

If your business operates in one of these jurisdictions, you must comply with the state's specific reimbursement laws.

To ensure compliance, you should:

1. Check the specific reimbursement laws in your state or city.
2. Consult with a tax professional or accountant to ensure you are meeting all requirements.

Keep in mind that reimbursement laws can change, so it's essential to stay up-to-date on any changes that may affect your business.