Legal Question in Business Law in California

Employee responsibility

My boss leases equipment to clients. He want us, the sales reps, to sign personal guarantor contracts stating we are financially responsibile for the leased equipment of the client defaults. Is this legal?


Asked on 6/21/07, 4:03 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Employee responsibility

If you're an employee and not a contractor, this policy is against the California Labor Code. Best guess is even if you were to sign a personal guarantee, the courts won't uphold it. But that's just my best guess. I would suggest to the boss that he contract with a third party finance company if he wants to outsource his credit risks.

Read more
Answered on 6/21/07, 4:26 pm
Terry A. Nelson Nelson & Lawless

Re: Employee responsibility

Legal? Probably not. Intelligent of you to do so? Hell no. You might have a wrongful termination claim if fired for refusal. If that happens, give me a call.

Read more
Answered on 6/21/07, 5:59 pm


Related Questions & Answers

More Business Law questions and answers in California