To celebrate World EV Day on September 9th, David Lewis, founder and CEO of MoveEV, an AI-backed EV mobility tech company that helps organizations convert fleet and employee-owned gas vehicles to electric and reimburse for charging at home, offers three ways for employers to reimburse employees for charging electric vehicles at home.
- Flat Fee Allowance – The simplest way to reimburse employees for home charging is with a flat fee payment method, where employees get the same payment every month regardless of how often they charge their car at their home. Payment is not correlated to the actual electricity used. This is the simplest way to reimburse, but is also the least efficient, most expensive and could potentially leave your company vulnerable to a class action labor lawsuit.
- Mileage Reimbursement – Another option for vehicle reimbursement is based on mileage. The Internal Revenue Service (IRS) sets a standard mileage reimbursement rate for drivers who use their own vehicles for business purposes. That rate is applicable to both gasoline-powered and electric vehicles.
- Real Costs – The most accurate but also the most historically burdensome method for reimbursing employees for charging at home is through actual expense reimbursement. This approach requires employers to separately reimburse employees for various expenses related to EV use: charging, maintenance, repairs, insurance, registration and depreciation. For individual vehicles being used for work and company-owned assets, this method requires being able to separate out home electricity costs used for charging the vehicle.
Non-compliance with reimbursement regulations can have serious consequences for employers. California Labor Code Section 2802 lawsuits have resulted in significant financial settlements, highlighting the need for companies to adhere to these requirements. By implementing a fair and precise reimbursement program, employers can mitigate legal risks, ensure compliance with labor regulations and maintain positive relationships with their employees.
Learn more at www.moveev.com/reimburse
