Nanny Mileage Reimbursement in California: What Los Angeles Families Are Required to Pay

In California, reimbursing your nanny for mileage driven in their personal vehicle is not optional — it is a legal requirement. Many LA families either miss this or apply it incorrectly. Here is what actually applies and how to handle it cleanly.

Do I have to reimburse my nanny for mileage in California?

Yes — if the driving is for your benefit as part of the job. California Labor Code Section 2802 requires employers to cover all necessary business expenses. If your nanny is using their own car to perform their duties, you are required to cover the cost.

When does mileage reimbursement apply?

Any time your nanny uses their personal vehicle for work-related duties:

• School pickup and drop-off
• Driving to activities, appointments, and playdates
• Running errands (groceries, pharmacy, returns)
• Driving between locations during the workday

It does not apply to commuting to and from your home.

Edge cases: Starting the day at school or an activity is reimbursable. Mixed-use trips: only the work-related portion is reimbursed.

What mileage rate should I pay my nanny?

California does not set a fixed rate. You must reimburse enough to fully cover actual expenses — gas, wear and tear, insurance, depreciation. Most families use the IRS standard mileage rate because it is widely accepted, easy to administer, and courts often look to it as a reasonable benchmark. You can pay more. If you pay less, you must be able to prove it fully covers actual costs.

Is mileage reimbursement separate from wages?

Yes. It is not wages, not subject to overtime, and should not be bundled into an hourly rate. Handled properly, reimbursements are not taxable income. Rolling it into pay often creates compliance issues.

What if we provide a car?

If your nanny uses a family vehicle, mileage reimbursement does not apply. You are responsible for gas, insurance (must allow a household employee as a driver), and maintenance. Confirm your policy explicitly covers this.

What if we require driving but do not reimburse?

You cannot shift business expenses onto an employee. If challenged, you may owe back reimbursement, interest, and potential penalties. Mileage claims often surface after termination and can go back years.

Can we use a flat weekly stipend instead?

Only if it actually covers real mileage. A flat stipend that falls short of actual usage is still non-compliant. If you use a stipend, track actual miles periodically and adjust as needed.

How should mileage be tracked?

A basic log: date, start and end location, purpose, miles driven. Tools: notes app, shared doc, or a mileage app such as MileIQ. Reimburse each pay cycle. If you do not keep records, disputes often rely on the employee’s reasonable estimates.

What about insurance and liability?

If your nanny drives their own car, their insurance is primary — but you may still have exposure as the employer. If they drive your car, your policy must allow them as a driver. Many families carry an umbrella policy for added protection. Some insurers require disclosure if a household employee regularly drives children.

Does this apply to all household employees?

Yes. California Labor Code Section 2802 applies broadly to all employees, including household workers. Enforcement is inconsistent, but liability is real — especially if a dispute arises.