---
title: Reduce your CA Labor Code 2802 exposure
description: Learn why you are violating California Labor Code 2802(a) and how to reduce your exposure.
---

[![mburse](https://www.mburse.com/hs-fs/hubfs/mBurse%20Logo2.png?width=150&height=43&name=mBurse%20Logo2.png "mburse")](https://www.mburse.com)

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## There is a 99% chance your car allowance/reimbursement is violating a **California Labor Code!**

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Gas prices are spiking. Take our 15-second audit to measure your risk of violating the most stringent indemnification labor code in the country. You can also assess your risk from labor laws in MA, ND, SD, RI, NY, MI, IL. Answer a few questions to get:

- Immediate risk assessment
- Suggestions to mitigate risk
- Concrete steps to avoid fines and fees

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### Complete the form to start your free audit:

[Privacy policy](https://www.mburse.com/about/privacy-policy/)

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## Avoid penalties and fees

**Fines and fees average over $4,000 per employee per year.  
**But if your policy is defensible in CA, it will protect you in all states.

![Gavel Labor Code Cases](https://www.mburse.com/hs-fs/hubfs/Gavel%20Labor%20Code%20Cases.jpeg?width=412&name=Gavel%20Labor%20Code%20Cases.jpeg "Gavel Labor Code Cases")

![Managing costs](https://www.mburse.com/hs-fs/hubfs/Managing%20costs.jpg?width=412&name=Managing%20costs.jpg "Managing costs")

## Adopt sound methodology

**Compliance requires a quantifiable car allowance or reimbursement.**  
Your method of deriving your vehicle reimbursement or allowance must also be transparent.

## Hallmarks of a compliant, professional car allowance or reimbursement

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###### Defensible

- Based on CA costs
- IRS-compliant
- Quantifiable

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###### Equitable

- Fair for the company
- Fair to employees
- Transparent

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###### Accurate

- Based on employee expense data
- Geographically cost-sensitive
- Updated for 2022 costs

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###### Standardized

- Based on a standard vehicle
- Reflective of fixed costs
- Same methodology for all

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###### Responsible

- Avoiding over/under reimbursement
- Responsive to variable costs
- Able to control company costs

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###### Scalable

- Appropriate to company size
- Customized to each employee's costs
- Well-suited for company goals

### Disclaimer

Your privacy matters to us. We do not distribute your data or information.

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