If your employees hit the road routinely on behalf of the company, you’re contending with a phenomenon called mobile employee risk.
How does this risk differ from any other corporate risk? Simply put, we’re talking about any threats to the company’s financial picture that derive primarily from having employees operate personal vehicles to carry out their jobs.
It is crucial that any owner of or leader within an organization with mobile employees understands the myriad risks these employees bring in addition to the many benefits they confer. We would like to equip you with a complete guide—Everything You Need to Know about Mobile Employee Risk. We’ll lay out for you each type of risk along with tips for how to reduce that risk and protect both the company and your employees.
Concepts we’ll cover
- Car accidents – Thousands of car accidents occur daily, and it’s only a matter of time before an employee-involved accident happens during the workday. Learn how to decrease the likelihood of an accident as well as protect the company from liability if one does occur.
- Vicarious liability and respondeat superior – When an employee causes an accident, the employer can be held legally responsible under the doctrine of respondeat superior. Learn how to reduce the chances that accident victims will come after your organization.
- Employee car insurance requirements – If an employee causes an accident but lacks sufficient insurance to cover the damages, the employer can be held liable via respondeat superior. Learn how to create policies that mandate appropriate levels of employee auto insurance coverage.
- Negligent entrustment – If an employee causes an accident and is found reckless or incompetent as a driver, the employer can face a negligent entrustment lawsuit (once again, because of respondeat superior). Learn how to create a comprehensive safety policy that reduces this risk.
- Insurance verifications and MVR checks – It is vital to hold employees accountable for driving safely and following company policies. Learn best practices for verifying employee car insurance coverage and conducting employee motor vehicle record (MVR) checks on a regular basis.
- Compliance with state labor codes – Several states specifically protect the income of employees who incur expenses as part of their jobs. California’s labor code—specifically Section 2802(a)—is the strictest. Comply with CA, and you’re covered everywhere. We’ll show you how.
- Compliance with IRS regulations – Learn the difference between an accountable (non-taxable) reimbursement plan and a non-accountable (taxable) plan so you can make sure you’re properly taxing or not taxing your employees’ car allowance or reimbursement.
- Tax reform in 2018 – The new tax code passed by Congress in December 2017 eliminates the unreimbursed business expense deduction. This will have major implications for your mobile employees. Learn how to manage the risks this new law creates for your company and its employees.
- Controlling costs – Complying with the various tax and labor regulations can leave a company exposed to uncontrollable costs. It doesn’t have to be that way. We’ll show you how to avoid this scenario.
- Best practices – For all of the topics we cover, we will make sure to equip you with knowledge of up-to-date best practices that can protect your company from mobile employee risk in 2018 and beyond.
The bottom line is, if you have employees who drive for work, you’re probably exposed to some serious risks. It pays to educate yourself and take action.
Get started by checking out Everything You Need to Know about Mobile Employee Risk.