For California employers, compliance is rarely a once-a-year task.
The IRS business mileage rate changed again on July 1, 2026, increasing to 76 cents per mile. For businesses that reimburse employees for work-related use of personal vehicles, the change is a timely reminder that policies and internal processes may need attention throughout the year.
What happens when a compliance benchmark changes in the middle of your business year?
The answer goes beyond updating a number.
Employers may also need to consider whether reimbursement policies, payroll or expense systems, documentation practices, and employee communications remain aligned with the way the business actually operates.
That is particularly important in California, where employers have obligations related to reimbursing employees for necessary business expenses. While the IRS mileage rate is commonly used as a reimbursement benchmark, businesses should understand how their own reimbursement practices fit within California requirements.
For Santa Clarita business owners, this is a practical example of why compliance works best as an ongoing process. Employees may drive between locations, meet with clients, run business errands, or use personal vehicles for other work-related purposes. As a business grows and operations evolve, reimbursement practices can evolve with them.
In our recent article, Koegle Law Group takes a closer look at:
- What changed with the mileage reimbursement rate in July 2026
- How mileage reimbursement relates to California employers
- Why written policies and actual reimbursement practices should remain aligned
- What businesses may want to review when rates change during the year
For employers, the bigger takeaway is simple: staying compliant often means having systems that can keep pace when the rules and benchmarks change.
Read the full article here: Mileage Reimbursement Rate for Business Use Increases in July 2026
At Koegle Law Group, we partner with California employers and business owners to provide practical guidance, clear communication, and proactive legal strategies designed to support informed decision-making over time.
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