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Mileage
Q.  Does the government set a required mileage rate for employees that drive between job sites?

A.  Yes and No.  Yes, the federal government does set a mileage rate for its employees, but no, unless you happen to be the federal government, you are not required to pay mileage to your employees at the federal rates.
 
In fact, wage and hour laws do not require employers to pay mileage to their employees at all. 
 
That said, under Oregon’s Minimum Wage Law (ORS 653) employers are prohibited from requiring employees to shoulder the expense of required items if doing so has the effect of reducing their wages below minimum wage.  
 
For example, a non- exempt employee who works 40 hours during a weekly pay period at a rate of $9.00 per hour will earns $360.00 and receives $8.00 per week above the required minimum wage.  Until the new minimum wage takes effect, requiring such an employee to pay up to $8.00 in one week for a expenses required by the employer would not cut into the minimum wage. 
 
So if on the job travel is an item that you require, related expenses like fuel and vehicular wear and tear cannot have the effect of reducing an employee’s wages below minimum wage for all hours worked.  Paying an agreed upon rate per mile driven is one way of preventing a potential minimum wage violation.
 
Q. If the employer does pay mileage to employees, does the employer still have to pay for the employee’s travel time? 

A. Yes, the regular travel rules still apply.  See our FAQ on Travel​ for further details.

 

  

DISCLAIMER 
Nothing on this website is intended as legal advice.  Any responses to specific questions are based on the facts as we understand them, and not intended to apply to any other situations.  This communication is not an agency order.  If you need legal advice, please consult an attorney.  We attempt to update the information on this website as soon as practicable following changes or developments in the laws and rules affecting Oregon employers, but we make no warranties or representations, express or implied, about whether the information provided is current.  We urge you to check the applicable statutes and administrative rules yourself and to consult with legal counsel prior to taking action that may invoke employee rights or employer responsibilities or omitting to act when required by law to act.
 
TECHNICAL ASSISTANCE FOR EMPLOYERS
800 NE OREGON STREET, STE 1045
PORTLAND, OR  97232
971-673-0824
 
 
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