Connecticut mileage reimbursement rates and laws (2025)
Connecticut mileage reimbursement rates and laws (2025)
Introduction
Connecticut's laws establish a multifaceted structure for employee travel reimbursement that financial officers must navigate with precision. Under Section 31-312(a) of the state's Workers' Compensation Act, both public and private sector employees who sustain workplace injuries maintain an established right to reimbursement for travel expenses incurred while attending medical appointments—a provision that represents a significant financial protection during recovery periods.
For Connecticut's private employers, however, the statutory requirements present a more limited scope. No explicit legal mandate exists compelling businesses to provide mileage reimbursement for routine business travel in personal vehicles, absent workplace injury circumstances.
Nevertheless, financial prudence suggests a more comprehensive approach. Connecticut's minimum wage statute creates an implicit compensation floor that savvy employers recognize as relevant to travel expenses. When employees utilize personal vehicles extensively for business operations without reimbursement, their effective hourly compensation may fall below state-mandated minimums—creating potential liability exposures that outweigh any short-term cost advantages of foregoing a formal reimbursement structure.
Connecticut business mileage reimbursement rates
For Connecticut, the prevailing mileage reimbursement rate stands at $0.70 per mile in 2025, adhering to the Internal Revenue Service's established business mileage rate.
The following comparative analysis illustrates the progression of the IRS standard mileage rates.
Note: Organizations have flexibility to reimburse employees at rates that differ from the IRS standard. However, any reimbursement exceeding the IRS rate will be classified as taxable income to the employee.
Connecticut mileage reimbursement calculator
To calculate applicable mileage reimbursement for Connecticut, use the following:
- Select the appropriate tax year for your calculation period
- Enter the total miles driven to compute eligible reimbursement amounts
The calculator below provides precise reimbursement figures based on current rates and specified mileage inputs.
Connecticut mileage reimbursement laws
Connecticut employers must navigate specific employee mileage reimbursement requirements that affect both private and public sector operations. The state's regulations provide important protections for employees that merit careful attention from business leaders.
Section 31-312(a) of the workers' compensation act
Under Section 31-312(a) of the Workers' Compensation Act, employers must provide mileage reimbursement to covered employees who sustain workplace injuries and require transportation to medical appointments. This provision applies across both public and private sectors for eligible workers.
Connecticut minimum wage act and mileage reimbursement
The Connecticut Minimum Wage Act, while primarily focused on wage standards, has significant implications for travel compensation practices. If insufficient mileage reimbursement effectively reduces an employee's earnings below the state's minimum wage threshold, employers may need to adjust reimbursement rates accordingly to maintain compliance.
Connecticut vs federal mileage reimbursement laws
Connecticut's approach differs notably from federal standards. Federal regulations only mandate mileage reimbursement when its absence would push wages below the minimum threshold. In contrast, Connecticut explicitly requires such compensation in specific circumstances, such as for medical appointments following work-related injuries under the Workers' Compensation Act.
Best practices for avoiding legal issues in Connecticut
Running a business in Connecticut means staying ahead of compliance requirements while managing your bottom line. When it comes to mileage reimbursement, the right approach can protect you from legal headaches while maintaining financial efficiency. Here's how to handle employee mileage reimbursements without exposing your company to unnecessary risks.
Implement clear written policies
Start by implementing a clear policy that leaves no room for confusion. Establish written guidelines that spell out reimbursement rates and eligible travel so everyone understands what qualifies for reimbursement and what doesn't. This clarity eliminates disputes before they start and creates a foundation for consistent application. Be explicit about excluding personal commutes while covering necessary business travel.
Benchmark against the IRS standard rate
While Connecticut doesn't mandate a specific reimbursement rate, using the IRS standard mileage rate provides a practical safe harbor. This rate currently stands at 67¢ per mile for 2024 and is adjusted annually to reflect real vehicle operating costs, keeping your reimbursements fair and nontaxable. Connecticut state employees already receive reimbursement at this rate, setting a useful benchmark for private employers.
For companies looking for alternatives, a Fixed and Variable Rate (FAVR) program might offer more precision. FAVR accounts for both fixed vehicle ownership costs and variable operating expenses based on geographic differences. If you choose this route or any alternative method, ensure it reasonably covers actual expenses and document your calculation methodology.
Monitor impact on minimum wage compliance
Pay special attention if you employ lower-wage workers who drive as part of their job duties. When delivery drivers or field service technicians use personal vehicles, unreimbursed expenses could effectively drop their hourly earnings below Connecticut's $15 minimum wage. This creates legal exposure you don't need. Consider instituting mileage reimbursements or raising pay to compensate for vehicle expenses, protecting both your employees and your business from potential wage violation claims.
Comply with Connecticut specific requirements
Connecticut has specific requirements you can't ignore. For work-related injuries, you must reimburse travel to medical appointments at the mandated rate. In restaurant, hospitality, or multi-location businesses, employees traveling between sites during workdays need both pay for travel time and mileage reimbursement. These aren't optional expenses but legally required components of employee compensation.
Maintain detailed records
Strong record-keeping forms your defense against both compliance issues and disputes. Implement a reliable tracking system such as a mileage tracking app, spreadsheet, or standardized mileage form that captures trip dates, distances, and business purposes. These records substantiate both your business expense deductions and your compliance with reimbursement obligations. Modern GPS-based tracking solutions can streamline this process while improving accuracy and reducing potential fraud.
By taking a proactive approach to mileage reimbursement, you'll protect your business from potential legal challenges while maintaining cost control. The investment in proper policies, fair rates, and efficient tracking pays for itself by preventing expensive wage disputes and compliance failures down the road.
Easily automate all employee mileage reimbursements
Managing Connecticut mileage reimbursement requirements demands both legal awareness and financial strategy. While the state offers employers significant flexibility in structuring their reimbursement programs, this freedom carries corresponding responsibility. Implementing comprehensive policies that meet or exceed federal benchmarks while maintaining detailed documentation creates a foundation for both compliance and cost control.
By implementing clear written policies, using the IRS standard rate as a benchmark, monitoring minimum wage compliance, fulfilling Connecticut-specific requirements, and maintaining detailed records, businesses can protect themselves from potential legal challenges while ensuring fair compensation for employees who drive as part of their professional responsibilities.
For businesses looking to streamline this process entirely, Brex's expense management software eliminates the complexities of mileage and expense reimbursement through automation. The platform automatically handles expense reimbursements, approval workflows, receipt capture, and policy enforcement—removing manual tasks and compliance risks. Brex combines corporate cards, expense management automation, bill pay, travel management booking, and business banking accounts on a single platform, giving financial teams complete visibility and control over company spending. Sign up for Brex today to transform how your Connecticut business handles mileage reimbursement and all expense management needs.