Access to a company car can be a great perk, but it also comes with added responsibility. If you get in an accident while driving your company vehicle, you may worry about who will pay the bills and whether you might lose your job because of it. Can you get fired for crashing a company car?
What Is a Company Car?
A company car is a vehicle that your employer owns or leases. Employers usually provide employees with company cars for work purposes, but some employees may also operate the vehicle for personal use.
When Can Your Employer Fire You for Crashing a Company Car?
Whether your employer can or will fire you for crashing a company car depends on several factors.
Company Policy
Some employers have specific policies that may include consequences for employees who wreck a company vehicle. Make sure you know your company’s policies before you start driving a company car.
Your Employment Contract
If you have an employment contract, it may have clauses that state what happens if you crash a company car. You should review your employment contract with an attorney.
Employee Classification
Employers have a different relationship with employees and independent contractors. If you are an independent contractor, your contract with the company may specify whether the employer can terminate your contract due to crashing a company car.
Reason for Terminating Your Employment
Employment is at-will in Washington, D.C., Virginia, and Maryland unless there is a contract or company policy that says otherwise. This means your employer can fire you for any reason, or no reason, except in particular circumstances specified by state or federal law.
If you crash the company car, your employer can’t fire you for filing an insurance or workers’ compensation claim. However, your employer can fire you for crashing the car, unless a specific company policy or your employment contract says otherwise.
What If the Accident Wasn’t Your Fault?
Your employer doesn’t have to consider who caused the accident when determining whether to fire you because of crashing the company car, but most probably will. If someone else caused the accident and you did everything you could to avoid it, your employer will probably not fire you, unless you were breaking a company policy or the law.
If you caused the accident, it isn’t a guarantee that your employer will fire you, but it is more likely. Your employer may be more likely to fire you if you were driving recklessly, intoxicated, breaking the law, or running personal errands on company time, or if you caused a serious accident.
If you have a contract that states your employer can only fire you for cause, negligence may be enough to justify your termination under your contract for crashing a company car. An attorney can review the terms of your employment and the applicable laws to determine whether your employer can legally fire you due to your accident.
What Happens If Someone Hits You in Your Company Car?
You may be able to pursue compensation through a personal injury lawsuit or workers’ compensation if someone else hits you while you are driving your company car. If the accident happened while you were working, workers’ compensation may cover your medical bills, rehabilitation expenses, and lost wages.
On the other hand, if the other driver’s negligence caused your injuries, you may be able to file a claim with their insurance or pursue a personal injury lawsuit to recover compensation for damages not covered by workers’ compensation.Â
Should You Tell Your Boss You Got Into a Car Accident?
Report the accident to your supervisor as soon as you can. Your employer will be able to help you with filing an insurance or workers’ compensation claim.
Additionally, reporting the accident may be a requirement of your employment contract or part of company policy. It is also a requirement for any workers’ compensation claim you may have.
Who Has To Pay for the Damages If You Crash a Company Car?
Who has to pay for damages due to an accident involving a company car depends on the facts of the circumstances.
Whether You Were Working When the Accident Happened
Employers are generally responsible for the actions that their employees perform while doing their jobs. If you were driving the company car while performing work, your employer may be liable for any damage you negligently caused to another person or their property. Additionally, workers’ compensation may cover your medical expenses and lost wages.
If you were driving the car for personal reasons, your employer will probably not be liable for damages you caused to another person, and workers’ compensation will probably not cover your medical expenses and lost wages. However, you may be able to recover compensation from the other driver.
Negligence
Because of contributory negligence laws, if you contributed at all to the cause of your injuries and property damage when you crashed a company car, you may have to pay for all of your damages out of pocket, except for expenses covered by workers’ compensation.
If you were 100% responsible for the accident, the other party may be able to recover compensation from you or your employer. If someone else was 100% responsible for the accident, you may be able to recover compensation from that person’s insurance or sue them for damages.
Employment Classification
Employers are usually not liable for the actions of independent contractors. If you are an independent contractor and you cause an accident, you or your insurance may be personally responsible for the damages, and you will probably not be eligible for workers’ compensation.
How Can a Company Car Crash Lawyer Help?
The legal and employment consequences of crashing a company car can be complex. A personal injury attorney can help you determine who is at fault for your accident and what types of compensation you may be able to pursue.
An attorney at Koonz, McKenney, Johnson & DePaolis, LLP, will explain how the various laws apply to your case, investigate your accident, and help you prove your claim or file a lawsuit. Contact us today to schedule a free consultation. You will only pay a fee if you receive compensation.