Legal Question in Business Law in California

Is it illegal or against the laws in California to force employees to pay for a company vehicle while delivering company food to local businesses ? ( Like renting a vehicle from the company bi-monthly and pressured to do so.) It does not state that it is manditory to pay for a company vehicle when driving for the company according to company policies or employee handbook guide. It has been conveyed to drivers for this company that if they do not comply to this boss(es) that they will find a driver who can, which implies termination. This company also has a document that says that they can fire/lay-off without reason. Aren't people suppose to get paid for working in the company and not pay companies just to work for the company in a food industry? From Pizza


Asked on 2/13/12, 5:05 pm

1 Answer from Attorneys

Scott Brear Law Practice of Scott Irvin Brear

Interesting question. Usually companies who offer company cars will require employees to pay some nominal monthly fee for the car with the understanding that the car will be used for personal as well as business use. If not, the personal use side of the vehicle could be considered income and be subject to tax. It is easier to charge the employee up front to avoid that. Without understanding more about your written policies and compensation plan it is hard to answer specifically here. If the company charges you for their vehicle what is the rationale? Do you also get a salary? Do you get tips? Who pays the gas and insurance? It would be wise for any company to have these arrangements written down for all to see. When not in writing, such agreements can be hard to enforce. It would be too strict to say that they are doing anything illegal..based upon what you say. Questionable policy? yes!

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Answered on 2/14/12, 4:21 pm


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