Legal Question in Business Law in California
I Am a new attorney and just started at a small firm. The company gives me a monthly stipend of $350 to help with my car payment as well as my Fastrack which is like a pre paid toll to use the carpool lane. When I was hired they did not ask me anything about my driving record. Recently I got a speeding ticket on my own time not driving anywhere for the firm. My boss is now telling me that I am a liability and that if I were to get into an accident they can go after the firm's million dollar + insurance. Is that true, i feel like they are making a fuss just to try and get out of paying the $350.
3 Answers from Attorneys
If you were in an at-fault crash during a company chore, the firm could be sued for negligent entrustment or related causes of action. The firms liability insurance, non owned auto coverage should cover them to the extent of coverage.
I think my colleague is correct, but the facts would have to support such a claim.
I mean, how did they even know about your speeding ticket? Either way, they are not obligated to continue to give you the stipend in any event unless it is written into your employment contract and even then they likely would have cause to terminate the perk.
All the best,
Frank
Yes, if you were on firm business at the time of the accident. But that would be just as true if the firm wasn't giving you a car allowance and paying for your FasTrak. Taking away these perks would not reduce the firm's liability.
The firm might be concerned about being sued if you have an accident on your own time. If the plaintiff is grasping at straws, she might see these perks as a reason to sue the firm. The claim would likely be meritless, but defending against it would still be costly.
A bigger concern for the firm may be that you didn't already know the answer to this question or how to research it yourself.
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