Labor Logic

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John D. Finerty, Jr.

When Attorney General Peg Lautenschlager had a single car accident in Dodge County, she was driving a state-owned vehicle. In a police report released after the accident, she admitted to drinking prior to driving. Are you or your employer clients prepared to take action if an employee drives a company vehicle under the influence of alcohol?

Policy Options

Eliminating the use of employer-owned vehicles is a drastic step but an option for some employers. Employers that elect this option may reimburse employees for mileage or provide a “car allowance” instead of a company vehicle. The federal mileage reimbursement rate is $.375 per mile. However, if the use of company vehicles cannot be eliminated, employers should take a number of steps to help control exposure from the employee misuse of company cars.

Employers should establish minimum driver requirements for operation of company-owned vehicles. Recommendations from risk managers and insurance companies typically include:

1. a minimum length of employment before employees can use company-owned vehicles;

2. a satisfactory accident record that includes no at-fault accidents;

3. a current and valid driver’s license;

4. a clean Department of Motor Vehicles driver’s record, with no excessive speeding violations; and,

5. a requirement that the employee be at least 25 years old.

Any policy, whether involving a company-owned vehicle or employee use of his or her own vehicles on company time, should include an alcohol consumption policy.

Most employers prohibit consumption of alcohol on company time or when using company vehicles. (In conjunction with this policy, employers may also consider a mandatory seatbelt policy). Any policy should notify employees that they may be disciplined, up to and including termination, for operating company vehicles under the influence of alcohol.

Employee Statement

When implementing a policy, it is usually advisable that employees acknowledge the policy and promise to abide by it. Employees allowed to use company-owned vehicles should acknowledge, at a minimum, that certain conduct while operating company vehicles could jeopardize their employment, such as driving with a suspended or revoked license, careless or reckless driving, or driving under the influence of alcohol. Importantly, a comprehensive policy would also cover rental cars used for business purposes.

Enforcement Issues

Employment policies need to be enforced, and enforcement needs to be audited, to make a policy effective. Consider implementing the following measures to help insure employee compliance with a company vehicle use policy:

• Require employees to self-report all driving infractions, including off-duty DUI citations or alcohol involved accidents;

• Randomly check employee driving records or conviction records to ensure employees are self-reporting in a timely fashion and deter violations of the self-report policy;

• Re-evaluate all drivers at least annually;

dImplement a drug and alcohol testing program that allows, at a minimum, testing employees who are suspected to be under the influence of alcohol.

For more information or for help drafting and implementing employment policies to address this issue, contact John D. Finerty, Jr. at Michael Best & Friedrich at (414) 225-8269 or on the Internet at [email protected].