Motus Fuel Report Reveals that Mobile Workers in 29 States are Being Under-Reimbursed for Mileage Expenses [Press Release]

Employers must ensure their mileage reimbursements are fair and accurate across all employees in order to mitigate lawsuits

BOSTON, MA (PRWEB) AUGUST 26, 2015

Motus LLC, today issued a report showcasing the fact that mobile workers in 29 states are not being adequately reimbursed for the business use of their personal vehicles. This staggering number underscores the need for companies to calculate each employee’s localized costs as opposed to using national averages to calculate reimbursement rates.

The Motus report leverages variances in fuel costs to highlight the discrepancy between national averages and localized, actual costs of operating a vehicle. Highlighting this discrepancy is necessary because under-reimbursement is a particularly important issue for California, home to the largest mobile workforce and to stringent labor laws. California Labor Code section 2802(a) protects California employees from assuming costs on behalf of their employers by requiring employers to reimburse for all necessary work-related expenses, including the costs of driving a personal vehicle for work. Employers who fail to do so increase their risk of legal action, which carries significant costs for companies. Recent lawsuits related to under-reimbursed vehicle expenses have resulted in settlements that ranged from one million to seven million dollars.

Many companies aggregate average costs across the nation and over a time period to determine flat reimbursement rates for all employees. Motus’ IRS-compliant fixed and variable rate (FAVR) program enables organizations to capture employees’ actual vehicle costs and adjusts rates accordingly – in real-time – ensuring the most accurate reimbursements to mobile employees and ultimately, mitigating employers’ risk of lawsuits.

“Reimbursing your employees fairly and accurately for the business use of their personal assets is not only good business, it’s the law,” said Craig Powell, CEO, Motus. “At Motus, we are committed to providing our partners with a real-time, data-driven technology solution that ensures fair and accurate reimbursement for each business mile driven by mobile workers.”

The full report, “National Fuel Price Variations and the Impact on Vehicle Reimbursement” can be downloaded for free.

Methodology: Motus fuel price data is based on a direct feed of fuel prices provided by the Oil Price Information Service (OPIS).

The Author

Motus

For companies with mobile workers that drive more than 5,000 business miles per year, we are the most accurate vehicle management and reimbursement platform available. Through our sophisticated configuration engine that incorporates real-time data across hundreds of variables, we drive significant reductions in cost, ensure compliance and reimburse employees exactly what they deserve.

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