Going the extra mile: Must you pay for it?
Q If we require employees to use their personal vehicle for work, are we legally obligated to reimburse them for mileage or other vehicle-related expenses even if their pay wouldn’t fall below the minimum wage if we didn’t?
Generally, no. The federal Fair Labor Standards Act (FLSA) does not create a free-standing duty to reimburse mileage or other personal-vehicle expenses. Reimbursement is only required to the extent that your employee’s unreimbursed, employer-required vehicle costs cut into minimum wage (or into overtime pay). So, if an employee’s effective pay stays above minimum wage after absorbing the costs of using a personal vehicle for work, there is no violation of the FLSA and no reimbursement is owed. Idaho law does not deviate from the FLSA to impose any requirement unless an employer has agreed to reimburse an employee for use of their personal vehicle for work.