Legal Question in Business Law in California
free shuttle
we own a bar, and we give customers free rides home at nite. our drivers are paid, they work only on tips. is there any liabilities with this?
5 Answers from Attorneys
Re: free shuttle
Of course. Make sure you have effective auto insurance and general liability insurance that covers such use.
Re: free shuttle
Yes.
It is a good thing you are doing, but you must protect yourself.
You need to make sure the cars and drivers have adequate insurance.
You may also be running into wage & hour violations.
Hire a lawyer (email me) and talk to your insurance agent.
Re: free shuttle
You have to pay your employees at least the minimum wage. You have to have workers' compensation insurance for them. You have to have insurance that covers your possible liability for what you are doing (in essence you are transporting persons for hire and you probably also need a permit from the Cal. Public Utilities Commission).
Re: free shuttle
The other attorneys have provided good information, but let me add this:
There is always risk in doing a good deed, particularly when you are taking (some) responsibility for an inebriated person (who might do something unexpected, like demand to be dropped off at his estranged ex-girlfriend's house - you see where this could go).
Many bars will call a cab for a patron, but then the exposure to liability mostly ends. You are taking it one step further.
You might consider having people sign a waiver (written by an attorney) while they are still sober. Even if they sign after drinking, you are probably still better off with some written waiver than without one.
This is not my area of expertise. You may wish to have a DUI attorney write the waiver, or maybe any decent attorney can come up with something that will reduce (if not totally eliminate) your exposure to liability.
For regulars, the waiver could serve as standing permission to provide the taxi service and offer guidelines for appropriate conduct while in your care.
I could draft a paper for your customers to sign. Feel free to contact me if you want more information.
Re: free shuttle
Yes. You will want to make sure your drivers are properly licensed and properly insured and your business has proper insurance over and above their insurance.