Some Important Los Angeles Per Diem Laws
When operating or traveling in Los Angeles, businesses must adhere to California state law, as there are no city-specific ordinances that supersede the state's requirements for expense reimbursement.
California Labor Code Section 2802
This is the most critical law governing employee expenses in Los Angeles. It requires employers to reimburse employees for all necessary expenses they incur as a direct result of their job duties. This means that if an employer uses a per diem system for travel to a high-cost city like Los Angeles, the per diem rate must be sufficient to cover the employee's actual, reasonable costs for lodging and meals. If an employee's necessary expenses exceed the per diem amount, the employer is legally required to reimburse the difference.
Los Angeles Minimum Wage
The City and County of Los Angeles have their own minimum wage rates that are higher than the California state minimum. This is important in the context of the federal Fair Labor Standards Act (FLSA), which states that unreimbursed business expenses cannot cause an employee's effective wage to fall below the minimum wage. Given LA's higher local minimum wage, this provides an even stronger floor of protection for employees.
Workers' Compensation Is Separate
The Workers' Compensation programs for LA City and County employees are comprehensive but apply specifically to work-related injuries and illnesses. They do not govern general business travel expense policies like per diem.
Los Angeles Per Diem Laws vs Federal Law
The legal framework for per diem in Los Angeles for a private company employee is dictated by California state law, which differs significantly from the GSA rules that govern federal employees.
Primary Applicability
- Federal Law (GSA): Mandatory for all federal employees on official travel to Los Angeles.
- State Law (California Labor Code): Applies to all employees of private companies in Los Angeles.
Rate Setting and Flexibility
- Federal Law (GSA): Prescribes specific, fixed per diem rates (lodging and M&IE) for Los Angeles County, often with seasonal adjustments. There is no flexibility for federal agencies.
- State Law (California): Does not set a specific per diem rate. It mandates that employees must be fully reimbursed for their necessary business expenses. An employer can use the GSA rate as a benchmark, but if an employee's actual costs in LA are higher (and reasonable), the employer must cover the difference.
Core Legal Principle
- Federal Law (GSA): To create a uniform, predictable, and cost-controlled system for government travel expenses.
- State Law (California): To protect employees from incurring personal financial losses while performing their job duties. The focus is on making the employee whole.
How Fyle Can Automate Per Diem and Expense Tracking
Managing travel expenses for a sprawling and expensive metropolitan area like Los Angeles requires a smart, automated system that ensures both compliance and convenience. Manual tracking can lead to errors, policy violations, and frustrated employees.
Fyle provides an intelligent solution tailored for the challenges of LA travel:
- Pinpoint Rate Automation: Fyle applies the correct, up-to-date GSA per diem rates for Los Angeles County automatically, factoring in any seasonal lodging changes based on travel dates.
- Robust and Flexible Policy Engine: Whether you adhere strictly to GSA rates or have a hybrid policy that accommodates for higher actual costs in LA, Fyle's engine can enforce it. Set spending thresholds, create approval workflows, and get instant notifications on any policy exceptions.
- Real-Time Expense Capture: Empower your employees to ditch the hassle of paper receipts. With Fyle's top-rated mobile app, they can snap a picture of a receipt, and Fyle's AI will extract the data instantly. Expenses can also be submitted by forwarding receipts from Gmail or Outlook.
- Pre-Submission Compliance: Fyle's platform automatically checks expenses against your company's policies before they are even submitted. This proactive approach saves hours of manual review and ensures every expense report is compliant from the start.
- Integrated Mileage Tracking: For navigating the vast LA area by car, Fyle’s Google Maps-powered mileage tracker offers an effortless and accurate way to log trips for reimbursement, complete with IRS-compliant record-keeping.
- Seamless ERP and Accounting Sync: Fyle integrates directly with major accounting software like NetSuite, QuickBooks, Xero, and Sage Intacct. All approved per diem and travel expense data for Los Angeles trips flows directly to your general ledger, ensuring accuracy and speed.
With Fyle, managing the unique demands of travel to Los Angeles becomes simple, compliant, and efficient for your entire organization.