The Division of Workers’ Compensation (DWC) has announced that the mileage rate that workers’ comp claims administrators pay injured workers for travel related to medical treatment or evaluation of their injuries has increased from 50.5¢ per mile to 58.5¢ per mile. The new rate applies for travel on or after July 1, 2008, regardless of the date of injury, while the old rate of 50.5¢ per mile still applies for travel from January 1 through June 30, 2008. DWC has posted downloadable mileage-expense forms that show the applicable rates based on the travel date on its website, www.dir.ca.gov/dwc/forms.html.
California law [Labor Code Section 4600 (e)(2)], in conjunction with Government Code Section 19820 and Department of Personnel Administration regulations, requires claims administrators to reimburse injured workers for medical mileage at the rate adopted by the Director of the Department of Personnel Administration for non-represented (excluded) state employees, which is tied to the Internal Revenue Service published mileage rate. The IRS normally adjusts the standard mileage rate each fall for the next calendar year based on an annual study of the fixed and variable costs of operating an automobile. On June 23, however, the IRS announced that due to recent gasoline price increases, it was making a special adjustment for the final months of 2008, so as of July 1, 2008, the standard mileage rate would increase to 58.5 cent per business mile driven.
The Division of Workers’ Compensation July 8 Newsline announcing the new mileage rate for travel on or after July 1, 2008 is posted at http://www.dir.ca.gov/dwc/dwc_newsline.html.