Learn how to get the most out of your listing on our website. See what complimentary promotional opportunities are available to both new and veteran members. Can participation on a Chamber committee help your business? It's all available tonight at the New Member Mingle. "Seasoned" members are also welcome. The Chamber's Director of Communications, Janet Pozos, will be on hand to demonstrate how easy it is to link your social media accounts to your Chamber web listing. Members can also offer discounts or coupons to fellow Chamber members or the general public. Meet some Chamber Board members, the Chamber staff, and your fellow newbies! The New Member Mingle is free to attend. It will be in the Chamber office (400 E. Esplanade Drive, Suite 302) on February 27 from 4:30 to 6:00 PM. Refreshments, wine and hors d'oeuvres will be served. Click here to let us know you are coming! The Economic Development Collaborative–Ventura County’s special services coordinator, Clare Briglio, has announced additional resources now available for businesses recovering from the impact of the Thomas Fire and subsequent floods and mudslides. “New federal declarations have secured additional resources for those who have suffered personal and/or business injury as a result of the Thomas Fire and subsequent mudslides and floods,” explained Briglio. “To take full advantage of these new federal resources, business owners are encouraged to follow this three-step process. For direct in-person assistance in filing with FEMA or the SBA, please visit a Disaster Recovery Center in your area. In addition, EDC-VC has compiled an online list of resources at http://edc-vc.com/disaster-recovery-services/.” To access available federal fire and flood relief resources, people should follow this three-step process: Step 1: Registration with FEMA- Clients who have been impacted by the Thomas Fire and subsequent flood and are interested in government assistance should apply online at DisasterAssistance.gov or by phone at 1-800-621-3362. The toll-free numbers are open 7 a.m. to 10 p.m. seven days a week. NOTE: The filing deadline to return FEMA applications for property damage is March 16, 2018. The deadline to return economic injury applications is Oct. 15, 2018. Applicants should have the following information at hand: · Social Security number. · Address of the damaged primary residence. · Description of the damage. · Information about insurance coverage. · A current contact telephone number. · An address where they can receive mail. · Bank account and routing numbers for direct deposit of funds. Step 2: Registration with the SBA for low-interest loans- Low-interest disaster loans from the U.S. Small Business Administration (SBA) are available for businesses of all sizes (including landlords), private non-profit organizations, homeowners and renters. Disaster loans cover losses not fully compensated by insurance or other recoveries. This includes Economic Injury Disaster loans for businesses that may or may not have sustained any damage, but have experienced a downturn in business because of the disaster. The SBA customer service center is also available to answer questions at 1-800-659-2955. Applicants may also come in to a Local Recovery Center (LRC) for person-to-person assistance in completing their applications. For further information, visit SBA’s website at www.sba.gov/disaster. Step 3: Registration with EDD for unemployment benefits- Federal Disaster Unemployment Assistance (DUA) benefits are now available for workers, business owners and self-employed individuals who lost their jobs or had their work hours substantially reduced as a result of the wildfires and associated flooding, mudslides and debris flows in Santa Barbara and Ventura counties. Those affected are encourages to apply online at https://eapply4ui.edd.ca.gov/, by calling 1-800-300-5616 (English) 1-800-326-8937 (Spanish) or by visiting a Local Recovery Center (see locations below). Local Recovery Centers (LRC) - Two Disaster Recovery Centers are now open locally for personal and business assistance. Representatives from FEMA, SBA, OES and other agencies will be present to provide information and resources for economic and personal injury due to the Thomas Fire and subsequent floods. Locations are as follows: SANTA BARBARA Calvary Chapel 1 N Calle Cesar Chavez #21 Santa Barbara, Ca 93103 Monday-Friday 11-6:30 Saturday 10-2 pm VENTURA Ventura County Credit Union 6026 Telephone Rd Ventura, CA 93003 Monday-Wednesday 9-4pm Thursday/Friday 9-5pm Saturday 9-1 pm RESOURCES FOR FARMERS AND RANCHERS- The U.S. Department of Agriculture's Farm Service Agency has opened a temporary satellite office this week in Ventura County to help farmers and ranchers who suffered losses in the Thomas Fire apply for federal disaster recovery assistance. Agricultural Commissioner's Office 815 E. Santa Barbara St. Santa Paula, CA 93060 Hours of operation Thursday, January 18, 8 a.m. to noon Thursday, January 25, 10 a.m.-2 p.m. Thursday, February 1, 10 a.m.-2 p.m. Thursday, February 8, 10 a.m.-2 p.m. Thursday, February 15, 10 a.m.-2 p.m. Thursday, February 22, 10 a.m. -2 p.m. Applicants are asked to call the Santa Barbara FSA office at 805-928-9269 to schedule an appointment, but drop-ins are also welcome. The SBDC is funded by the SBA and provides professional business assistance at no cost to businesses. Participating businesses are required to follow a well-defined scope of work and report their economic successes. These SBA milestones are defined as job creation, increase in sales, capital investment, jobs retained and businesses started. EDC-VC is a private, nonprofit organization that serves as a business-to-government liaison to assist businesses in Ventura County by offering programs that enhance the economic vitality of the region. For more information about the Small Business Development Center, loan programs, manufacturing outreach and international trade program, or other services available to small businesses through EDC-VC, contact Bruce Stenslie at 805-384-1800 ext. 24 or bruce.stenslie@edc-vc.com. Or visit www.edc-vc.com. Wm. Rick Gill is a native of California and has been a resident of Ventura County for over 30 years. Rick and his wife, Nancy Covarrubias Gill, believe in supporting the community by serving in various charities and events. Rick has coached youth sports and served on their board of directors. The Gills are the proud parents of their son who graduated from St. Bonaventure High School and currently attends Cal State Fullerton. As a full time Realtor who was licensed in 2002, Rick has the knowledge and experience to guide you through the entire process of buying or selling Real Estate in Ventura County. He has an extensive background in outstanding customer service and his interpersonal skills will provide you with the best service in today’s real estate market. As a realtor, Rick’s motto is to always place his client’s interests first to provide them with the best possible service and outcomes. Rick’s favorite part of the process is handing over the keys to his first-time home buyers. Rick was immediately impressed by Comfort Real Estate Services and their demonstrated level of professionalism and service. He is confident that his clients will enjoy and benefit by working with his team and everyone at the Comfort Real Estate Services office. Rick looks forward to getting involved with Oxnard Chamber functions, networking, serving on chamber committees and community events. If you are looking to buy or sell a home or investment property, please contact Rick at 805-218-1259 or rickgillvcrealtors@gmail.com. As of January 1, California employers must comply with strict rules passed under the new Immigrant Worker Protection Act (AB 450), which protects workers in the state from immigration enforcement while they’re on the job.
Under AB 450, all employers, regardless of size, must limit U.S. Immigration and Customs Enforcement (ICE) agents’ access to both the worksite and employee records, and must follow new notice obligations. The Labor Commissioner and the Attorney General have authority to enforce the act’s provisions and employer missteps can result in fines of $2,000 to $5,000 for a first violation and $5,000 to $10,000 for each subsequent violation. Warrants/Subpoenas Required California employers can no longer consent voluntarily to allow ICE to enter nonpublic work areas or to access company records. Instead, ICE must present legal documentation in the form of a warrant or subpoena before employers can allow access. The employer can take a federal immigration enforcement agent to a nonpublic area to verify the warrant, as long as no employees are present and the employer doesn’t provide consent to search nonpublic business areas in the process. Employers cannot voluntarily allow ICE agents to gain access to, review or obtain employee records without a subpoena or judicial warrant. The prohibition does not apply to Form I-9 or other documents for which a Notice of Inspection (NOI) was provided to the employer. Notify Employees Employers must follow specific requirements related to Form I-9 inspections. For example, within 72 hours of receiving a Notice of Inspection, California employers must post a notice to all current employees informing them of any federal immigration agency’s inspections of Forms I-9 or other employment records. Employers also have obligations once the inspection is over. Within 72 hours of receiving the inspection results, employers must provide each “affected employee” a copy of the results and a written notice of the employer’s and employee’s obligations arising from the inspection. The written notice must contain specific information and must be hand-delivered in the workplace, if possible. An “affected employee” is one identified by the inspection results as potentially lacking work authorization or having document deficiencies. Unions also have the right to receive notices. An employer that fails to follow any of these notice requirements can be fined between $2,000 to $5,000 for a first violation and $5,000 to $10,000 for each subsequent violation. At the same time, federal penalties for Form I-9 violations can range from a couple hundred dollars to more than $20,000. Training/Documentation California employers need to ensure that supervisors and any employees who are likely to interact with authorities arriving at the worksite are aware of the limitations on ICE access and the prohibition against voluntarily granting access without particular documentation. Consider designating a trained point-person(s) for front-line staff to contact if immigration agents arrive at the worksite. These individuals should be trained to ask for a warrant or subpoena. California employers also need to create and document processes to meet all pre- and post-inspection notice requirements. Since the 72-hour timeframes are short, standardized posting and notice processes will help employers meet their compliance obligations. The Labor Commissioner has until July 1, 2018, to create a model posting template. The California Chamber of Commerce has developed a template for CalChamber members to use to meet the posting requirement until the Labor Commissioner develops an official template. The CalChamber Notice to Employees: Government Inspection of Employment Eligibility Records is available for members in English and in Spanish in the Forms & Tools section on HRCalifornia.com. Workplace Eligibility The act also makes it unlawful for employers to reverify the employment eligibility of current employees in a time or manner not allowed by federal employment eligibility verification laws. Federal law already prohibits unlawful reverification practices, such as reverifying unexpired documentation. The new state law adds an additional state civil penalty of up to $10,000. Compliance in this area is going to be tough and only time will tell what legal challenges this new law may bring. In the interim, however, employers will need to comply. Given the potential conflicts or confusion between an employer’s obligations under federal law and these new California requirements—as well as the federal administration’s statements that it intends to increase worksite enforcement actions in 2018—employers should consult a labor or immigration attorney with any questions or concerns. More detailed guidance is available on HRCalifornia. One of the Chamber’s signature publications is its annual Business and Community Guide. Advertising sales are now open for the 2018 edition. As with past editions, the 2018 Guide will be distributed all over town. Most of the hotels in Oxnard make it available to their guests. With its eye-catching cover and beautiful photography, the Guide is something people hold onto and use as a buying reference. The Business and Community Guide is completely compiled and produced by the Chamber, so in addition to promoting members’ goods and services, it’s a great way to support the organization as well. Ad sales will be open until February 28. Prime advertising locations will go fast, so don’t delay. Contact the Chamber today to reserve your space. There are options to fit every budget. The Internal Revenue Service (IRS) has released income tax withholding information for 2018 (Notice 1036) that shows new rates for employers to use. The 2018 withholding tables reflect changes due to the tax reform legislation enacted last month. A withholding table shows payroll service providers and employers how much tax to withhold from employee paychecks, given each employee’s wages, marital status and number of claimed withholding allowances. The IRS instructs employers to begin using the 2018 withholding tables as soon as possible but no later than Feb. 15, 2018. Employers should continue to use the 2017 withholding tables until they implement the 2018 withholding tables. Once employers implement the new tables, many employees will begin to see changes in their paychecks reflecting the tax reform. The new tax law makes a number of changes for 2018 that affect individual taxpayers. The new tables reflect the:
More information on the updated withholding tables is available in the IRS’s Withholding Tables Frequently Asked Questions. W-4 Update Coming Soon The IRS is currently working on revising the Form W-4 to reflect additional changes in the new law, such as changes in available itemized deductions, increases in the child tax credit, the new dependent credit and the repeal of dependent exemptions. Until a new Form W-4 is issued, employees and employers should continue to use the 2017 Form W-4. Employees do not need to fill out a new W-4 right now — the new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. This, according to the IRS, will minimize the burden on taxpayers and employers. The IRS is also revising the tax withholding calculator on their website to help employees update their withholding in response to the new law or other changes in personal circumstances in 2018. The IRS anticipates this calculator should be available by the end of February. Taxpayers are encouraged to use the calculator to adjust their withholding once it is released. On the Horizon The IRS plans to help educate taxpayers about the new withholding guidelines and calculator. The effort will be designed to help workers ensure that they are not having too much or too little withholding taken out of their pay. Check out the IRS’s Resources for Tax Law Changes for more information. For 2019, the IRS anticipates making further changes involving withholding. The IRS will work with the business and payroll community to encourage workers to file new Forms W-4 next year and share information on changes in the new tax law that impact withholding. “The IRS appreciates the help from the payroll community working with us on these important changes,” said Acting IRS Commissioner David Kautter, in a statement. “Payroll withholding can be complicated, and the needs of taxpayers vary based on their personal financial situation. In the weeks ahead, the IRS will be providing more information to help people understand and review these changes.” Want to know more about deductions from wages? CalChamber members can find forms and Q&Asin the HR Library. Not a member? See how HRCalifornia can help you. The City of Oxnard is overseeing a project to construct an overpass on Rice Avenue over Fifth Street and the UPRR tracks. The purpose of the infrastructure enhancement is to improve safety at the busy intersection and to streamline traffic and goods movement on Rice Avenue. The overpass will eliminate the need for drivers to navigate the railroad tracks, where numerous accidents have occurred.
Justin Link, Transportation Services Manager for the City of Oxnard, and Chris Hooke, Deputy Director for the County of Ventura Transportation Department, will make the presentation. Mr. Link recently joined the city and oversees the development of transportation improvements for the City. He has over 12 years of experience in the private sector in traffic and transportation project development. Mr. Hooke has been with the County’s Transportation Department for 18 years and has overseen the construction of improvements to the County road system. Please join us on February 8 at the Knowledge & Networking Lunch to find out all the details of the project. The lunch will be at River Ridge Golf Club, 2401 W. Vineyard Avenue. Check-in and networking start at 11:30. Lunch is at noon, with the program to follow. Advance reservations are requested and are discounted if made by February 5. Click here to sign up. Oxnard sure has more than its fair share of challenges these days. With the city council recall looming, the city being threatened to create electorate districts, and changes in the top management at city hall it’s a wonder anything gets done. But aside from all of the distractions, we should count our blessings. Last month when the Thomas Fire was raging, I remember saying to myself on numerous occasions, “I am so lucky to not be threatened by this fire and can sleep in my own bed without concern that a disaster is going to strike me.” Oxnard is not vulnerable to wild fires. The risk is low because we don’t have vegetation-covered hillsides. Kind of makes the Oxnard Plain a bit more appealing. Likewise, we don’t have to worry about the devastation of mud and landslides. I’m still trying to comprehend what happened in Montecito. I’m not sure what I will be saying after the “Big One” hits Southern California when we could be subject to liquefaction or a tsunami. But for now, I am really happy I both live and work in Oxnard! Now, if we could just do something about the politics in our city… Governor Edmund G. Brown Jr. this week proposed the final budget of his gubernatorial career, proposing to spend a record $190 billion without raising taxes and setting aside $13 billion in a rainy-day reserve. For the first time since 1998, it appears that a retiring governor will not pass along a budget deficit to his successor. Nonetheless, the Governor insisted that fiscal prudence must guide decisions this year, emphasizing that “we prepare for the recession, not when it comes, but years before.” The Governor noted that by the end of the next fiscal year, the economic expansion will be the longest post-war period of uninterrupted growth. A moderate recession, according to the Department of Finance, would drop state revenues by more than $20 billion annually. The day after the Governor released his budget proposal, the California Chamber of Commerce hosted Department of Finance Director Michael Cohen at a Luncheon Forum where he provided attendees with details on the proposed budget. Education With respect to education, the administration proposes fully funding the Local Control Funding Formula, a finance allocation that eliminates most categorical funding programs in favor of aiming supplemental funding toward poor students, English learners and children in foster care. Overall spending on public schools and community colleges will have increased by 66% in the seven years since the depths of the recession. In the Governor’s proposal, funding for the University of California will increase by about 2%, and for the California State University by 1%. For community colleges, the budget includes an overall increase of 4% and implements legislation from last year that waives tuition for first-time, full-time students. The budget also proposes the creation of an entirely online two-year degree aimed at working Californians. Workforce To address the state’s long-term workforce needs, the Governor proposes providing $200 million to support K–12 career-technical education programs that are aligned with industry skills, and additional funding for industry experts to support these programs. The idea is to maintain a predictable, targeted and sustained funding stream to support an industry/education workforce development collaboration. Transportation/Courts Following up on last year’s increase in transportation revenues, the administration plans to spend $4.6 billion in the next fiscal year on various highway and bridge maintenance, rehabilitation and operational improvements. The budget also includes funds to restart the state’s construction program to complete 10 courthouses. The state’s judicial branch will be provided additional funding to support efforts by the Judicial Council to improve and modernize trial court operations. Cap-and-Trade The Legislature in 2017 extended the cap-and-trade program, which is designed to enable reductions in greenhouse gas emissions, through 2030. A consequence of this extension was to stabilize the existing program and ensure a steady stream of new revenues to the state, potentially amounting to billions in new taxes for the Legislature to spend. The Governor will outline his plan for new spending later this month in his state-of-the-state address. The full summary of the Governor’s budget proposal can be found at www.ebudget.ca.gov. Have you ever thought about getting more involved in local politics? Are you planning to run for elected office? Do you want to learn more about the nuts & bolts of political campaigns? Join the Chambers of Commerce Alliance of Ventura and Santa Barbara Counties for our 2018 Campaign School and learn the basics of running for office from seasoned veterans of the political campaign trail. Learn more about:
The Campaign School will be taught by a representative from the Leadership Institute, which is a nationally recognized nonprofit organization. The Campaign School will be held Saturday, January 20, 2018 from 9:00 am - 1:00 pm. The cost is $25 per person. Advanced reservations are required and can be made at www.venturachamber.com/campaign. Event will be held at the Oxnard Chamber of Commerce, 400 E. Esplanade Drive Suite 302, Oxnard, CA 93036. About the Chambers of Commerce Alliance The Chambers of Commerce Alliance of Ventura & Santa Barbara Counties serves as a useful resource and effective advocacy partner for regional chambers that are interested in strengthening our business climate through better policy making. Originally formed as the Regional Legislative Alliance, the Chambers of Commerce Alliance changed its name in 2009 and re-launched its web site and advocacy programs. The Alliance prides itself for its regular presence in the State Capitol and influence on a variety of state, local and federal issues. The Alliance is guided by its policy platform, which is adopted annually and serves as our advocacy agenda. Positions are taken by our board of directors with following input from our member chambers and strategic partners along with consideration given to existing positions and historic stances. The goal is to support legislative efforts that improve the region’s business climate and to oppose proposals that will likely cause job losses. The Alliance is funded through non-public sources, and all proceeds are invested directly into Alliance operations with priority given to advocacy. Also, the Alliance accepts funds from regional employers the most generous of whom are recognize as Capitol Circle Members. For more information, please email info@chamberalliance.biz. Membership is limited to local chambers of commerce, and strategic partners are encouraged to participate in the Alliance. Each chamber member is permitted to cast one vote per issue. ### By Michael Wynn Song, Chair Here’s wishing all of you a happy, healthy and prosperous new year. As the incoming Chair I will work with the Board of Directors and the CEO to accomplish the goals we set at our planning session last year. The Oxnard Chamber will continue to work tirelessly to protect our business climate and ensure our continued economic prosperity, to strengthen our leadership program and to enhance the quality of life for all in our wonderful city. We hope our local representatives will follow our suggestions for promoting legislation that focuses on the issues most critical to achieving those goals. With the signature count complete a council recall is now slated for this spring, the saga of the current Oxnard City Council member recall and a district-based election drama continues. The Chamber has voiced our position on the recall and now we’ll have to wait and see how things pan out. Regardless of the outcome we will continue to work with the City Council and local leadership to enhance the business climate I would be remiss if I didn’t mention the record-high stock market surges that have many investors cheering the corporate tax cut. Hopefully those tax cuts can also boost California worker’s wages to not only attract the best and brightest workers, but retain those workers in an ever-challenging California business climate. With the demise of pensions we need good wages and benefits to keep good workers. As part of Hyundai Glovis management, I am proud to say that we continue to evaluate and adjust our employees wages upward and provide good benefits such as dental, medical and vision insurance and a 401(k) plan with matching funds. Stock market surges and corporate profits are good for business. Unemployment is going down but unless it equates to a better standard of living workers can’t be happy. California needs to prepare the workforce of tomorrow. I don't mean to sound facetious but it's a safe bet to say that of the 55 million Americans that purportedly have a 401(k), not many are complaining about the stock market surges this past year. Nonetheless, healthy inequality is an issue; those who own equities and real assets get richer but most ordinary folks struggle to stay ahead. While the affluent are making boatloads of money, on the opposite end of the spectrum it's a totally different story. People don't mind falling behind when everybody else does. To give an extreme point of view, I don't know how many of the baby boomers are 401(k) participants but purportedly, less than half save less than $100K by retirement. To make an extreme point, this past year the average return on a million dollar 401(k) is about $170K. The percentage is the same but the baby boomer's return on his $100K 401(k) is $17K. The millionaire can support his family and live comfortably for well over a year on his plentiful return while the baby boomer can't even buy a Hyundai Sonata. Being proactive in your efforts to improve the standard of living for our workforce will ultimately help the Oxnard business community to prosper and grow. Last week, California businesses began to legally sell recreational marijuana in California. More than 400 state licenses have been issued so far, but the rollout may be slow. Cities or counties must first approve commercial marijuana sales, and localities can choose to ban or restrict recreational marijuana shops. On November 8, 2016, Californians voted to pass Proposition 64, also known as the Adult Use of Marijuana Act, which legalized the recreational use of marijuana for adults 21 years old and older. Although marijuana became legal to smoke on November 9, 2016 (the day after the election), licensed recreational marijuana sales were not allowed until January 1, 2018. But what about smoking weed at work? When it comes to the workplace, California employers can take a deep breath of fresh air, because the recreational use of marijuana stops at the workplace. Employer policies related to drug possession, use and impairment, as well as testing, are not compromised with the legalization of marijuana use under Proposition 64. Proposition 64 explicitly states that it is intended to “allow public and private employers to enact and enforce workplace policies pertaining to marijuana.” The initiative also provides that it will not be construed or interpreted to amend, repeal, affect, restrict or pre-empt: The rights and obligations of public and private employers to maintain a drug and alcohol free workplace or require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growth of marijuana in the workplace, or affect the ability of employers to have policies prohibiting the use of marijuana by employees and prospective employees, or prevent employers from complying with state or federal law (Section 11362.45 (f)). These provisions distinguish Proposition 64 from the failed 2010 initiative, which did not protect employer policies concerning the use of marijuana in the workplace. Therefore, even with the passage of Proposition 64, employers may continue to prohibit use, possession and impairment at work and may continue to test for use when appropriate. Proposition 64 is not intended to interfere with these workplace policies or practices. Pre-employment drug testing in California usually should be done only after a conditional job offer has been made. Otherwise workplace drug testing is usually subject to a “reasonable suspicion” test —allowing an employee to be drug tested only when specific objective facts indicate abuse. Random drug testing in California is rarely allowed; although certain industries or professions, such as transportation, have stricter drug testing requirements. Employers with concerns about recreational marijuana use will want to review existing policies and remind employees not only about the company’s drug-free workplace policy and practices but also to specify that marijuana is prohibited. Still unsure about legalized marijuana and drug-free workplace policies? CalChamber offers a free white paper on Marijuana and Workplace Policies (CalChamber members can download the white paper). CalChamber members can also view How To: Oversee Pre-Employment Drug Testing. Not a member? See how HRCalifornia can help you. What do these names all have in common? Fred Ferro Stacy Miller Laura Mullen Mark Spellman Michael Wynn Song St. John’s Regional Medical Center Umpqua Bank They will all appear on awards at the Chamber’s Annual Meeting & Installation of Directors on January 18. The outgoing Chair of the Board, Amy Fonzo, will be giving out some discretionary “thank you” awards as she leaves office. The awardees helped her accomplish the 2017 program of work for the Chamber. The Annual Meeting & Installation of Directors will be held at the Courtyard by Marriott on Esplanade Drive on Thursday, January 18 from 11:30 to 1:30. Advance reservations are required and can be made via the Chamber’s website or by calling the office at 805.983.6118. The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. This year, the business rate increases one cent per mile. Beginning January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil. The charitable rate is set by law. Employees always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Under California Labor Code section 2802, employers must fully reimburse employees for all expenses actually and necessarily incurred. Many employers typically choose to use the IRS mileage reimbursement rate, but its use is optional. The Division of Labor Standards Enforcement has stated that using the IRS mileage rate will generally satisfy an employer’s obligation to reimburse for business-related vehicle expenses, absent evidence to the contrary. However, if an employee can show that the chosen mileage reimbursement rate, even the IRS rate, does not cover all actual expenses the employee has incurred, the employer must pay the difference. Business vehicle expenses do not include only gasoline, but also wear and tear (depreciation), repairs, oil, insurance and other costs. Members can read more about Expense Reimbursements in the HR Library. Not a member? See how HRCalifornia can help you. |