The Division of Workers’ Compensation (DWC) is announcing the decrease of the mileage rate for medical and medical – legal travel expenses by three and one – half cents – down from 57.5 to 54.0 cents per mile effective January 1, 2016. This rate must be paid for travel on or after January 1, 2016 regardless of the date of injury.

Labor Code section 4600, in conjunction with Government Code section 19820 and the Department of Personnel Administration regulations, establishes the rate payable for mileage reimbursement for medical and medical – legal expenses and ties it to the Internal Revenue Service (IRS).

IRS Bulletin Number IR – 2015 – 137 dated December 17, 2015 announced the rate decrease. The IRS standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.

The updated mileage reimbursement form is posted on the DWC website.