Legal Question in Employment Law in California

Is it legal for a company to no longer allow employees to use company cars to travel to work sites & transport work equipment?

A family member of mine has worked for a company for more than 10 + years as a computer field tech. He has always been provided with a company car as his job requires fixing computer, phone, and printer related problems at 5+ different offices. He's required to transport computers, printers, and IT related items to the job sites. The company now states that the field employees will no longer be permitted to use their company vehicles. They will need to use personal vehicles and purchase their own auto insurance for the vehicles. They will be reimbursed at the current IRS rate for mileage only. No further information has been provided.

Is this legal?

I don't think he can purchase personal insurance as this is for work. Should my family member purchase business insurance since he will now be transporting very expensive IT equipment in his personal vehicle? It seems as if business auto insurance will be very expensive. Should the company reimburse him for a portion of the insurance cost as the cost of the business insurance is part of his work requirement now and likely more expensive than what he would normally have to pay?

What questions should he ask the company regarding liability? Thank you!


Asked on 6/01/16, 4:24 pm

1 Answer from Attorneys

Perfectly legal. He is not responsible for the equipment he transports. He doesn't have to insure it. In fact his employer still has to indemnify him for any loss arising out of the use of his vehicle that is not the result of his intentional misconduct or gross (reckless) negligence per the Labor Code. Any normal regular personal vehicle insurance will provide all the necessary coverage for incidental business use as long as he properly responds to underwriting inquiries as to how the vehicle is used, miles driven, etc.

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Answered on 6/01/16, 10:01 pm


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