Is the employee responsible for insurance and upkeep on a company vehicle?
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Is the employee responsible for insurance and upkeep on a company vehicle?
Work truck is used to travel to
work…to different job sites…and
then home. All personal use is charged
.50 per mile. Employer wants employee
to sign an agreement agreeing to have
money deducted from paycheck for
premium and any damage done to vehicle
even if the damage occurred on company
business.
Asked on July 26, 2016 under Employment Labor Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
They are responsible for insurance and upkeep *unless* an employee agrees in writing (i.e. by contract, since that's what a written agreement is: a contract) to pay for these things: it is legal for an employee to agree to take over responsible for insurance and upkeep, and to allow payroll deductions for this purpose. Furthermore, unless the employee already has a written employment contract protecting or guarantying his/her employment, he/she is an employee at will and may be terminated for any reason--including refusing to sign an agreement taking responsibility for these costs. Therefore, the employer can make the employee choose between losing his/her job and accepting responsibility for these items.
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